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It’s an exercise of Control. A snap of the whip brings folks submissively to the table.
Let it play out.
For every proposed tariff, model the domestic investment needed to offset the loss. Build a healthier cash flow dynamics model.
Especially if the goal is to build a strong regional trading bloc. Makes zero sense
The answer is the proposed tariffs on Canada and Mexico are overly punitive to try to get a renegotiation of the CUM trade deal, China he actually wants to tariff
Lots of China manufacturers have operations in other Asian countries. So that’s where this is going.
He also proposed 100% tariffs on Denmark. And also tariffs for Germany because of autos. And 10% on Europe, and also 60% at one point. He has cited drug smuggling, making Americans wealthier, punishing Canada for having trade surplus, not giving up Greenland, etc.
Important to note the 10% on China is *in addition* to those already levied.
Isn't it just the most obvious reason in the case of "NAFTA"? Negotiating weapon for migration control.
It’s transparent posturing for negotiations. Dumb? Very. Will those numbers become law? No.
It's simply not legal. Will Congress and SCOTUS allow? We shall see.
This last year+ has been a dream.
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Partly agree, but in my 2017 book, Political Economy of Tomorrow, I discussed the risk of a return to spheres of influence as the international order. It seems to also follow from G-zero world. Panama, Canada, Latam, Greenland are sought to solidify US sphere.
It is a capital mistake to analzye a dynamic system in static terms. Sure, if you asked me for my analysis if we put these tariffs up and keep them there forever, then ceteris paribus, it's bad. But that's not how reality evolves dynamically. If you told me that we'll put the
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True of most of the tariff discussion. Many repetitions of the idea that something isn't fair or that there's a negotiation strategy or some other vague benefit. Very, very little discussion of the purpose of any particular tariff or how we'll know if it achieves a goal.
Those are just proposed tariffs that will never be implemented. This is just to start negotiations with the three countries.
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Also Spain 100% just like all the BRICS countries (btw I'm pretty sure Trump told 100% because he thinks it's the highest theoritically possible tariff)
It’ll continue to keep most consumers on the sidelines, delaying big purchases or refinancing. I’m hoarding and hunkering down for a long while tbh.
It’s negotiation. You wouldn’t get it. You’re an academic. Let the adults do business.
Yes, punishing our closest trade partners and a token punishment on our most powerful geopolitical foe.
On the bright side, it will be apparent by the midterms that it’s a complete debacle - maybe a few percent of voters will wake up.
I'm here for the blue check MAGAs to defend it....popcorn and soda ready.....
Bet 1000 bucks he is not gonna do this, who still believes him at this point?
It's about economic pressure to annex territory. If It was actually about trade imbalance or fentanyl then the biggest tariff would be against China NOT America's closest neighbours AND allies!
These are the largest importers for the US. If this is a revenue strategy then that would be why.
It’s primarily Trump admitting he royally fucked up in his renegotiation of the USMCA. Ink’s still wet.
Jealousy & rank misogyny as he thinks he can just bully Mexico's President...
GIF
GIF
What Canada needs to do is just stop shipping toilet paper or the pulp used to make it to America. A total embargo.
After a few days of americans having fist fights at Costco over the last of the Charmin we can talk again and see how it goes.
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Galaxy brain's strategic / economic / overarching objectives:
1) Does it directly enrich me (money, power, influence)?
2) Does it exercise or flatter my ego?
Checks out!
Guy just love sanction so much he wants to put them on America too
He's sticking it to our enemies ... Err allies ... Or perhaps he is just an unhinged economic illiterate power hungry doddering old fool.
It's a game of economic chicken he is playing and he is assuming Americans are going to be willing to whether the storm longer than everyone else..it might work for one country at a time but multiple is straight up crazy.
The Germans, who are very bad actors in the global trading system and run massive surpluses get off Scot free. People said that the new Trump admin would be taking a page from Klein/Pettis. Seems like no, it’s just more mindless thrashing about like in the first term.
Exploitation of the weak. Like Panama and Greenland. Basic 6 year old bully type stuff along with cheap shots and name calling.
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thank you for always making economics understandable for the regular people.
Our strong ally and neighbor is being excessively punished while he lowered previously stated tariffs on CCP by an obscene amount. Should tell everyone all they need to know about where this administration’s allegiance will be placed.
Wondering if I should change my investments to something safer. I have a feeling the stock market is going to be affected sooner than later 
. Is anyone else a bit nervous about investments?
. Is anyone else a bit nervous about investments?
I know of an educated woman who told me these tariffs work for both sides. I think I am still stunned at that stupidity.
He is so stupid. The US is not subsidizing Canada! We just buy things back and forth across the border and the US buys a lot of fuel and oil. If he wants a trade surplus, but less fuel!
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Well if you ran on lowering prices and eliminating inflation, getting in a trade war certainly makes for a good excuse for why you weren't able to meet those objectives. Its a manufactured crises probably.
He promised that tariffs would pay for childcare. So basically he needs American importers to pay the tariffs (who will pass that cost to consumers) so that those consumers get gov funded childcare? I know, it’s kinda confusing but the rubes will believe anything he sells.
our 3 largest trading partners
what's not clear?
they gonna learn
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China already has 23% so up to 33% but yes taxes on your allies is pretty dumb
No, he doesn’t need to explain anything to the minority of brainwashed morons that hate him, he won a third time, get ready for a lot of your heroes to go to jail, because they’ve committed real crimes, establishment ass sucker
A 25% tariff on Canada and Mexico but just 10% on China? So we’re punishing our closest trade partners while going soft on the actual geopolitical rival? This isn’t strategy, it’s just incoherent protectionism
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You do understand that this is a NEGOTIATION TACTIC and not etched in STONE policy? or are you just being disingenuous?
Ain’t gonna happen. Mere words. Diarrhea of the mouth with constipated brain.
apparently Trump is really awful with deals if he is already breaking his new NAFTA and his his China Trade deal. Why on earth did people in this country give him another opportunity to screw them?
1. Trump hates to feel like he's being laughed at (trade deficits do that)
2. The base views tariffs as print American workers first.
Not that complicated really.
I mean the Canadian ones and to a lesser extent Mexican ones will raise costs in the US across the board, while China will be able to devalue its currency easily to adjust to the 10 percent one. It actually helps Chinese manufacturing?
So that he can extort some kind of concession then be the hero that calls it off at the last minute claiming he made the deal of the century and the maga tards will actually believe this
Galaxy brain here, I’ll help you out
Canada - leverage to boost exports
Mexico - leverage to limit migration
China - strategic punishment
Others - likely being negotiated
They are dressing up tariffs as a tax paid by foreign countries as a back-door way to introduce a consumption tax on ordinary folks. People won't be happy with increased prices but "at least we are collecting cash from China etc"
The proposed tariffs on Canada, our best foreign friend, are an insult to Canadians and Americans alike. They are disgraceful.
Dont Canada and Mexico share a border with us, borders they left unprotected on their ends? Hmmm...
Justin, provide a model and assumptions that mathematically proves tariffs are bad. It'll win a nobel prize, at least it would if you could do it. If you cannot, because the strategy space is huge stop talking nonsense.
Lmfao. You are not very bright
Lots more tariffs than that you moron. This is just what he was asked about. China would v an addition 10% of what they already pay
You people are such horrible liars but your moronic followers don't care. Hahahaha