It's really just laziness on Trump's part. They could have put in the work, found areas where Tariffs could benefit us, gone region to region and country to country to negotiate in way that makes sense.... instead, he let ChatGTP spit out a fake chart based on a fake formula, and went golfing for the weekend...
You realize that the Obama administration negotiated massive free trade agreements, culminating in the TPP, which lowered duties to basically zero with most of the largest economies that border the Pacific other than China, right? We could already have that, but Trump cancelled it. As far as I can tell, Obama only passed three tariff increases, all on a specific product from China. None of them general tariffs on everybody including penguins and polar bears. And those tariffs actually cost US consumers money without any specific benefits to show for it in general employment, wages, etc.
If we wanted to take on China, we needed to be lining up allies. Taking on the whole world all at once weakens our ability to take on China. Even if Trump eventually changed course on the “rest of world” tariffs, which I think is the assumption most people have been operating under (otherwise we’d be dropping alot further), it STILL has only weakened U.S. standing by casting doubt on our reliability.
Trump has said he wants tariffs to replace income tax, what makes you think there is an "off ramp?" I know people want to believe there is some kind of strategic plan here, but that is wish-casting.
Probably true. Income Tax revenues could be replaced with a highly regressive consumption tax. The tariff system would just be buttressed with a minimum national sales tax. The biggest question is whether outbound services (eg AI engines) from the US to the rest of the world would have a services or digital tax. That would be a massive.
As I said in the other thread on Genius Trump. I have talked to customs agents who dont know what the tariffs currently are. Looks like neither does the Treasury Secretary. China isn't yielding to Trump's tariffs. It's fighting back. Even Treasury Secretary Scott Bessent appeared confused, answering, “I think it is,” when asked if a 34% tariff President Donald Trump said he was imposing on Chinese goods imported into the U.S. was to be added to the 20% tariff that already existed. On Monday morning, Trump threatened an additional 50% tariff on China if it does not reverse the retaliatory 34% tariff on U.S. goods it announced last Friday.
The market is doing something almost unprecedented: selling everything American. American stocks are way down. American bond rates are going way up (suggesting that nobody wants US debt), and the dollar is way down, suggesting people are selling dollars. So, basically, everything American is worth less than it was before "Liberation Day."
Dumbass was told that this would happen but the idiot refused to listen. He ignored the advice of 99% of economists and found the one moron who agreed. The only competent person, Treasury Secretary Bessent looks like he is scared to death in every interview he’s given lately. It is visibly evident when you watch him speak, like he was threatened by someone and can’t speak. This is now past the point of insanity, all while the Want to Be Comedian and Chief is making jokes at a dinner last night about how countries are kissing his ass. The guy is insane, causing real damage at all our expense
MAGA: Mr. Trump, I'd like you to do something about my terrible seat on this plane TRUMP: OK, I will crash the plane into the ground. MAGA: What a great idea!
Have you considered that it is the fastest and easiest way to move a seat at the end of the plane to the front of the plane?
Sledgehammer to the skull Pin prick on the finger Both make you bloody so are the same That seems to be the intellect
some econ speculation. Tariffs are going to cause us to buy less foreign stuff, hence countries will have less US dollars flowing in which will decrease the demand for US treasuries. I think that may be partly the cause of the selloff. further, since it is a mathematical identity that a trade deficit = a capital account surplus, foreign direct investment will decline.
Breaking News! Trump pausing all tariffs, except for China, which he is increasing to 125% Some people somewhere just made a lot of money.
I hope we improve our trade with other countries while moving everything we can out of China. Got a long way to go. Going to be a bumpy 4 years.
