There are situations where tariffs are a beneficial tool to address a trading shortage, or to protect a country's major economic sectors. Then there are situations where you accused a Bunch of penguins on an non -living island of manipulation of money. Guess which one we live in?
This is the takeaway of the Sari -soa tariffs announced by President Donald Trump on Wednesday afternoon. In addition to the Penguin conquered by the Heard and the McDonald Islands, tariffs target the British Indian Ocean Territory, whose single resident lives at a joint US-UK military base on Diego Garcia Island. Yes, the United States gives the tariffs a reward against its own troops.
And then there are tariffs against countries with actual goods and services where US consumers depend. China: 54 percent. Vietnam: 46 percent. Cambodia: 49 percent. South Korea: 25 percent. No corner of the US consumer economy is unnoticed. Prices will rise. The stock market is spiraling. A backward looms. The The tech industry is upside down. Mark Cuban, mentioned billionaire, is Encouraging People in stockpile consumable before it is too late.
It's reckless, it's absurd, and it's all that Donald Trump said he clearly does on the path of the campaign. Honest Procedure will be – you can read about it Here.
The stated Purpose is to restore manufacturing jobs to the United States, which is like the resurrection of the Dodo. The US is still producing many goods; Second only to china in annual output, according to World Bank. But many of the industry's jobs are Replaced by automationa bottle you can't work again. And the higher domestic labor costs mean that US-made products will naturally be more expensive, a trade-off American buyers will continue to be rejected. All of this is true in Trump's first term. It is more so now.
And let's say that a plurality of the companies has decided to resemble or set up factories in the United States. The timeline for decisions and implementation is measured over the years, if not decades, and compliance can be flawless. (It just is Ask Foxconn.) So what happens in the meantime?
The reason is that it has all the weight of a soap bubble. There is no world where the US suddenly creates all the items that the country has decided to target. There are 47 percent tariffs in Madagascar today. Do you know why the US has a lack of trade in Madagascar? They make vanilla; We don't. Unless we suddenly set up vanilla assembly lines in Ohio, that doesn't change.
But maybe Trump's so-called release is just a master talking to the ploy. “Everyone is sitting, take a deep breath. Don't react immediately. Let's see where it goes,” Says Treasury Secretary Scott Bescent on CNN Wednesday. “Because if you retaliate, that's how we go.”
