Trump’s Tariff Strategy: US can no longer act as the world's economic shock absorber

[hotsun]

On 4/4/2025 at 3:43 AM, uncletiger said:

An interesting analysis. Not completely wrong. But it fails to hit the truly relevant point. The US is completely rejecting globalism, and forging an economy where you either work to better your own country, or you work to subjugate it.

 

Economists like to point out that free trade makes everyone better...on average. It's the on average part that is the problem. Because as Trump has told us, 50 years of data clearly show the vast, vast majority of Americans are worse off. Free trade works by pulling wealthy countries down to the same level as impoverished ones, while making a few who control the global supply lines very, very wealthy. In the process, those countries who were desperately poor might experience a slight increase in their standard of living, but again that came at the expense of the US which experienced a much more significant decrease.

 

What Trump is truly doing is simple. He's ending globalism. Because the US is not responsible to support the standard of living in countries like Vietnam or Thailand. The goal of the US, and for every country, is to increase and protect their own standard of living. The very opposite of globalism, sovereigntism accepts that some countries will be worse off, but the wealth that is in the US, stays in the US. Even if that is less efficient on a global basis, it leaves the USA in a substantially better position.

 

And that is the real war. The globalists want a one world government where everyone is the same. No borders. The US wants sovereignty and competitive nationalism, where everyone is responsible for themselves, with lots of diversity and competition. If the EU wants to continue to push globalism, they will henceforth have to do it without the USA.  The US will work to become entirely self sufficient, with resilient domestic supply chains and trade existing on the margins. Countries that want to trade with the US can continue to do so, but there will be no trade war, because the US is quitting the game.

 

Globalism and global supply chains are dead. You don't make your country dependent on goods and services from your enemy, and right now, the strongest supporter of globalism, the EU, is the enemy.

Trump is betting on Americans. Everyone else is betting against them. Remember who those people are. When theyre wrong they will still have the nerve to keep making predictions 

[jts-khorat]

On 4/4/2025 at 3:51 AM, JonnyF said:

The EU for example is probably the most protectionist bloc in history.

 

Protectionist tariffs make sense, when there is something to actually protect. But producing industry has left the US decades ago.

 

While this might be the plan (?) of Trump to bring it back, he is going about it the wrong way around. You would need years-long education programs, tax incentives, legal changes... and then you could rise protective tariffs.

 

With tariffs in place without an industry to be protected, all he has done is raising costs for US consumers, and the relationship between the EU and China as the remaining lucrative markets getting a lot closer automatically, depriving the US of even more market share.

 

In the end, I guess he will wobble on this policy as well, giving some countries "special relief" -- meaning, those companies who started the billion-dollar-investments to move back to the US will be wrecked latest then.

 

All in all, it is a senseless act of vandalism, hitting the whole world -- but hitting Americans a lot harder. As such, I can sleep soundly, because at least the idiots who voted for him will be totally gutted. After that, maybe reason will come back.

[jts-khorat]

On 4/4/2025 at 3:02 PM, PaoloR said:

Plus - the biggest single con is looking only at consumables and not balancing it against services. For example, is Google tariffed? The money income flow from banking, insurance and so many service industries needs to be balanced against the outflow from purchasing consumables.

 

You can be very sure, as soon as the patience of the EU runs out, this is where they will put countermeasures up.

 

Companies like Googe, Amazon, Oracle et al currently pay basically no tax in Europe... as soon as that changes, a USA without manufacturing will also loose their exporting service industry -- because moving services software and the data in a data center is comparably done in the blink of an eye.

[kwilco]

On 4/4/2025 at 2:51 AM, JonnyF said:

Try buying a Ford Mustang or a Harley in Bangkok.  

Firstly hardly anyone wants one.

 

If you think that the US can just start making those imported products themselves, you have another thing coming - it will take decades to produce foctories that can make those things and they will still be more expensive...unless the business owners can get the government to introduce a minimum wage of $12 per day.

 

H/D already have many parts made and sourced in Thailand (and Brazil) so they've taxed themselves on that. Tey also have assembly plants in Thailand  it is moving production of its Pan America, Sportster, and Nightster bike models from the U.S. to Thailand.

[newbee2022]

12 hours ago, candide said:

And it's been populated by European immigrants, such as Saxons, Nordic people, Normands....

Not to mention the fact that the Royals have been French and German! 😀

Populated by exploited people of their colonies 🥴

[ravip]

 

 

Great speech from a fine leader. No insults, no threats. Calm, but strong speech.

 

 

 

[Screaming]

On 4/4/2025 at 5:43 PM, uncletiger said:

An interesting analysis. Not completely wrong. But it fails to hit the truly relevant point. The US is completely rejecting globalism, and forging an economy where you either work to better your own country, or you work to subjugate it.

 

Economists like to point out that free trade makes everyone better...on average. It's the on average part that is the problem. Because as Trump has told us, 50 years of data clearly show the vast, vast majority of Americans are worse off. Free trade works by pulling wealthy countries down to the same level as impoverished ones, while making a few who control the global supply lines very, very wealthy. In the process, those countries who were desperately poor might experience a slight increase in their standard of living, but again that came at the expense of the US which experienced a much more significant decrease.

 

What Trump is truly doing is simple. He's ending globalism. Because the US is not responsible to support the standard of living in countries like Vietnam or Thailand. The goal of the US, and for every country, is to increase and protect their own standard of living. The very opposite of globalism, sovereigntism accepts that some countries will be worse off, but the wealth that is in the US, stays in the US. Even if that is less efficient on a global basis, it leaves the USA in a substantially better position.

 

And that is the real war. The globalists want a one world government where everyone is the same. No borders. The US wants sovereignty and competitive nationalism, where everyone is responsible for themselves, with lots of diversity and competition. If the EU wants to continue to push globalism, they will henceforth have to do it without the USA.  The US will work to become entirely self sufficient, with resilient domestic supply chains and trade existing on the margins. Countries that want to trade with the US can continue to do so, but there will be no trade war, because the US is quitting the game.

 

Globalism and global supply chains are dead. You don't make your country dependent on goods and services from your enemy, and right now, the strongest supporter of globalism, the EU, is the enemy.

Wow, very well written whomever wrote this. No other President besides Trump, possibly not even the great President Reagan, could have had the guts to impose these tariffs. If Trump is successful, he will go down in history as one of the greatest Presidents that the U.S. had ever had.

[Eric Loh]

Good speech. Singapore is an open economy and zero duties and a trade deficit with US. Singapore also has a free trade agreement with US and yet they are hit with a 10% tariff. This is indeed trouble times for small nations with a bully in the White House. 

[JonnyF]

The EU complaining about tariffs and trade barriers? 😀

 

This is gold.

 

Ramp it up Donald. Don't blink.

[stevenl]

8 minutes ago, JonnyF said:

The EU complaining about tariffs and trade barriers? 😀

 

This is gold.

 

Ramp it up Donald. Don't blink.

Your mind is really fixated on the EU. Let it go, this is not healthy.

[JonnyF]

5 minutes ago, stevenl said:

Your mind is really fixated on the EU. Let it go, this is not healthy.

 

Feel free to counter my point. 

[JonnyF]

18 hours ago, placeholder said:

All you offer is empty insults. That's because you've got nothing.

 

All you offer is a boring catchphrase.

 

You've got nothing. 

[Eric Loh]

39 minutes ago, JonnyF said:

 

Feel free to counter my point. 

 Trump’s tariff implementation should be targeted against EU’s trading discrepancies rather than a broad sweeping tariffs. The sectors that US see as unfair trade are automobiles and agriculture. Mind you, US enjoyed a trade surplus with the EU on service trade. Not a zero sum game but Trump seem to just bulldozed his way forward without any proper process. Perhaps because he is dumb as a rock. 

[stevenl]

1 hour ago, JonnyF said:

 

Feel free to counter my point. 

Has been done already. EU tariffs to US imports vary between 3 and 7 percent weighed average, depending on the source. Link has been provided earlier.

[Cameroni]

Quote

But this system has created massive distortions. As foreign countries stockpile dollars, the currency's value remains high, making American goods less competitive abroad.

 

You have to hand it to Trump, he understands the problem, he has to devalue the dollar to make American products more competitive, and he's getting it done. 

 

The grandiosity of the ambition, to restructure global trade. What other politician could think like this?

[ravip]

 

 

[Chomper Higgot]

1 hour ago, Cameroni said:

 

You have to hand it to Trump, he understands the problem, he has to devalue the dollar to make American products more competitive, and he's getting it done. 

 

The grandiosity of the ambition, to restructure global trade. What other politician could think like this?

It’s a shakedown.

 

He’ll remove the tariffs when he receives to fealty he demands.

 

Be that from nations or the Snetican Corporations the tariffs harm.

 

[candide]

4 hours ago, JonnyF said:

The EU complaining about tariffs and trade barriers? 😀

 

This is gold.

 

Ramp it up Donald. Don't blink.

The US had as much tariffs and trade barriers as the EU. Just not on the same products!

 

Oh, and there is no buy European act! 

[kwonitoy]

20 hours ago, jts-khorat said:

 

Protectionist tariffs make sense, when there is something to actually protect. But producing industry has left the US decades ago.

 

While this might be the plan (?) of Trump to bring it back, he is going about it the wrong way around. You would need years-long education programs, tax incentives, legal changes... and then you could rise protective tariffs.

 

With tariffs in place without an industry to be protected, all he has done is raising costs for US consumers, and the relationship between the EU and China as the remaining lucrative markets getting a lot closer automatically, depriving the US of even more market share.

 

In the end, I guess he will wobble on this policy as well, giving some countries "special relief" -- meaning, those companies who started the billion-dollar-investments to move back to the US will be wrecked latest then.

 

All in all, it is a senseless act of vandalism, hitting the whole world -- but hitting Americans a lot harder. As such, I can sleep soundly, because at least the idiots who voted for him will be totally gutted. After that, maybe reason will come back.

 

https://www.cbc.ca/news/canada/manitoba/canada-us-tariffs-north-south-dakota-farmers-1.7502342

 

 

 

 

Potash from Saskatchewan powers the North American farm sector, farming has always been a very low margin affair and any added input costs will bankrupt lots of farmers, on both sides of the border

In the article a air seeder made in Canada will go from 1,000,000 dollars to 1,250,000 dollars overnight, because of one man

[kwilco]

11 hours ago, JonnyF said:

The EU complaining about tariffs and trade barriers? 😀

 

This is gold.

 

Ramp it up Donald. Don't blink.

You are misinformed....

 

Tariffs or trade deficit? They aren’t the same….

 

The EU charges an average tariff of just 1% on US products entering the EU market, "considering the actual trade in goods". It adds that the US administration collected approximately €7 billion of tariffs on EU products in 2023 compared to the EU's €3 billion on US goods. The World Trade Organisation (WTO) estimate puts the average tariff rate on US products entering the EU slightly higher at 4.8%....

 

This is not balance of trade – this has nothing to do with tariffs, it is to do with what each country NEEDS or wants. EU has a lot of product wanted in the States and exports almost twice as much as it imports from th states – to get an idea, look at automobiles – American cars are simply not practical or up to standard to sell in the EU, whereas European cars are highly desirable in the states and a status symbol.

 

When it comes to buying product, what people buy varies according to what that country is selling –  Europe sells high quality goods including “groceries” made to EU standards (not chlorinated chicken). It’s like going shopping if you wanted a new suit you’d go to a taylor’s shop – you wouldn’t then charge your self an extra 34% of the suit he sells you – unless you were Donald Trump.

 

how long Trump lasts will depend on whether or not the public will tolerate higher prices all round and a shrinking economy

 

 

[kwilco]

On 4/5/2025 at 10:45 AM, AndreasHG said:

 

In fact, the UK was never part of (continental) Europe to begin with.

 

It is a piece of alien land that happens to be parked next to Europe, without belonging to it.

 

We can start by saying that in the British Isles it is customary to drive on the wrong side of the road. In continental Europe people pride themselves on keeping to the right side.

 

We can go on to note that the Britons insist on using imperial measurements, while continentals switched to the metric system after the Napoleonic campaigns that popularized them across the Continent.

 

Furthermore, Britons still weigh their body mass in stones, something continentals stopped doing at the end of the Stone Age, due to its impracticality (in the Continent, the art of picking stones of exactly equal or multiple weights for accurate measurement was lost in the Bronze Age).

 

And we can finish with food: as a great French chef observed in the eighteenth century, "Britain is an island where people are busy roasting, boiling, frying, baking, steaming a little of everything without actually cooking anything." 

 

Your knowledge of history isn't knowledge - it's ignorance all your point are factuallly incorrect and you also appear to be out of touch yourself

You obviously have never heard of Doggerland (no that's not what you do in your car on Saturday nights)......

 

[still kicking]

11 hours ago, JonnyF said:

 

All you offer is a boring catchphrase.

 

You've got nothing. 

Neither have you POM

[kwilco]

On 4/5/2025 at 10:45 AM, AndreasHG said:

In fact, the UK was never part of (continental) Europe to begin with.

 

It is a piece of alien land that happens to be parked next to Europe, without belonging to it.

 

We can start by saying that in the British Isles it is customary to drive on the wrong side of the road. In continental Europe people pride themselves on keeping to the right side.

 

We can go on to note that the Britons insist on using imperial measurements, while continentals switched to the metric system after the Napoleonic campaigns that popularized them across the Continent.

 

Furthermore, Britons still weigh their body mass in stones, something continentals stopped doing at the end of the Stone Age, due to its impracticality (in the Continent, the art of picking stones of exactly equal or multiple weights for accurate measurement was lost in the Bronze Age).

 

And we can finish with food: as a great French chef observed in the eighteenth century, "Britain is an island where people are busy roasting, boiling, frying, baking, steaming a little of everything without actually cooking anything." 

 

In fact, the UK was never part of (continental) Europe to begin with.”

“It is a piece of alien land that happens to be parked next to Europe, without belonging to it.”

Wrong! The British Isles became an island around 8,000 years ago (around 6500 BC) as sea levels rose and flooded the land bridge, Doggerland, that once connected it to mainland Europe.  The populations have moved freely across the Channel ever since. Including the largest gene-pool in UK today

 

 

“We can start by saying that in the British Isles it is customary to drive on the wrong side of the road. In continental Europe people pride themselves on keeping to the right side.”

 

Not as simple as you think – originally we all rode on the same side…. Change driving on the left to right. I take it your say “wrong” because you can’t tell left from right.

The reason the UK and the rest of Europe drove on the right is historically connected with the international ways of handling horses – most countries in Europe stayed on this way until the 20th century.

Countries that switched from left to right-hand driving many after occupation by Germany. The country that gave us the English language

Austria finalized in 1938

Czechoslovakia (now Czech Republic and Slovakia) 1939

Hungary - Date: 1941

Sweden: September 3, 1967 - One of the most famous switches; involved a massive public campaign

Iceland Followed Sweden's lead in May 26, 1968

Italy changed in the 1920s–1927, depending on the region – it was later standardised under Mussolini;

Even Germany although officially on the right, left-hand driving was common in Austro-Hungarian Empire areas before WWI

Luxembourg - February 1935

Poland – gradually through 1920s–30s

Areas under Austrian or Russian rule had left-side driving; unified post-WWI

Slovenia - Date: 1939, under German influence

 

Countries in Europe  that still drive on the left:

United Kingdom

Ireland

 Malta (former British colony)

Cyprus (former British colony)

 

America???

 

United States

Standardized: Early 20th century, but varied by state before that. (Watch Laurel and Hardy films)

The  Model T (1908) had the steering wheel on the left, encouraging driving on the right. By the 1920s, all states had adopted right-hand driving.

Canada Varied by province until the early 20th century - British Columbia switched in 1922 - Prince Edward Island was last to switch, in 1924

It was thought that proximity to the U.S. would make cross-border driving easier.  I’m sure they’ll consider switching back to driving on the left shortly!?!

 

The reason that Thailand drives on the right is not because the King’s car post 1900 was British, e.g a Napier, but it was down to the Japanese during the war.

 

“We can go on to note that the Britons insist on using imperial measurements, while continentals switched to the metric system after the Napoleonic campaigns that popularized them across the Continent.”

That is nonsense – anyone over the age of 50 grew up using the metric system – I take it you are quite old?

 “Furthermore, Britons still weigh their body mass in stones, something continentals stopped doing at the end of the Stone Age, due to its impracticality (in the Continent, the art of picking stones of exactly equal or multiple weights for accurate measurement was lost in the Bronze Age).”

 – If you ever use the NHS, you will be measures in KGs – they might convert you;’re archaic ideas afterwards so as not to embarrass you. 

 

“And we can finish with food: as a great French chef observed in the eighteenth century, "Britain is an island where people are busy roasting, boiling, frying, baking, steaming a little of everything without actually cooking anything."”

Not 18th C! -  This was written by  Paul Morand: (1892-1967) a French diplomat, writer, and critic known for his travel writing and observations of different cultures. It way have been written before the war but also possibly afterwards.

English (and British” cuisine has become some of the best in the world largely due to influences from Europe. – a huge number of Michelin  chefs in France are British. The reason British food has such a bad reputation is down to older people – after the war, Britain had no food to speak of and the American forces could not believe the diet of the British military  and the rank an file they came into contact with – this image they took back to the states and for older people it has remained. The British recovery took  several decades, and was not helped by American -style commercialism of food production for supermarkets Gradually we have overcome this and have adopted U standrds for food production – which is why today we can’t import many American foodstuffs including chlorinated chicken

 

 

[kwilco]

On 4/4/2025 at 2:51 AM, JonnyF said:

n fact, they celebrated it when Britain left the EU. Remainers rejoiced in how the EU was going to now tax all our exports to them. 

My guess is you've never been to Europe.

[kwilco]

40 minutes ago, kwilco said:

adopted U standrds for food production

Error - "adopted EU standards of food production..."

[thaibeachlovers]

On 4/5/2025 at 5:47 PM, newbee2022 said:

As I know that your pension funds are connected to the stock market Americans should be concerned very much with rising unemployment, inflation and decreasing economy.

And then think about this scenario: 

After 4 years Trump will start somewhere a "little war". Maybe at the border to Mexico? In this case he will have the right to delay elections infinitely. Do you know what that means? 

It means that you have a vivid imagination.

[thaibeachlovers]

6 hours ago, kwonitoy said:

 

https://www.cbc.ca/news/canada/manitoba/canada-us-tariffs-north-south-dakota-farmers-1.7502342

 

 

 

 

Potash from Saskatchewan powers the North American farm sector, farming has always been a very low margin affair and any added input costs will bankrupt lots of farmers, on both sides of the border

In the article a air seeder made in Canada will go from 1,000,000 dollars to 1,250,000 dollars overnight, because of one man

If no American company makes farm equipment don't blame Trump for that- blame the greedy scum that destroyed US industry to make bigger profits.

 

Seems that a long peace without any major crisis made people too complacent. Time's up, reality is along to give the sheeple a boot where it hurts. It may be happening now, but it was inevitable that it was going to happen eventually.

[thaibeachlovers]

14 hours ago, JonnyF said:

 

All you offer is a boring catchphrase.

 

You've got nothing. 

Ain't that the truth.

[thaibeachlovers]

16 hours ago, Screaming said:

Wow, very well written whomever wrote this. No other President besides Trump, possibly not even the great President Reagan, could have had the guts to impose these tariffs. If Trump is successful, he will go down in history as one of the greatest Presidents that the U.S. had ever had.

The problem is that far from working with Trump to better their own country, the liberals hate Trump so much they'll destroy the US if that's what it takes to get Trump.

 

PS, seems that the word liberals has come to refer to the loony leftists, rather than what it used to mean.

[candide]

1 hour ago, thaibeachlovers said:

The problem is that far from working with Trump to better their own country, the liberals hate Trump so much they'll destroy the US if that's what it takes to get Trump.

 

PS, seems that the word liberals has come to refer to the loony leftists, rather than what it used to mean.

Trump doesn't need any help to destroy the U.S.! 😆