Tariffs: A history.
As previously stated, there is an argument for tariffs under a few circumstances. To counter predatory pricing. Or to protect a strategic national industry. Economically, thats it..
Now lets talk about America. The T.Rex of global trade since WW2. It used its position as the only developed nation not to suffer industrial devastation to secure a beachead in every country in the west. It set the terms of trade by setting up a gold backed $ as the universal trade currency and mandated that only US banks could be used to transfer funds. Since then, if a nation is deemed to step out of line with American policy, it can be punished economically in terms of trade, including tariffs. And at each turn the rest of the world has remained docile, not wanting to get hit with the same big stick.
A few things have happened to hollow out the American mastery of trade. But far and away the biggest is the abandoning of the gold standard. (Note that the petrodollar deal that replaced it has recently expired) And the landscape of global trade has changed with the rise of China as an industrial giant.. But skipping ahead a couple of moves, enter Donald Trump. His first term saw a tariff war with China. And it seems he didnt learn a thing. (surprise surprise) But the rest of the world did. They smelled blood in the water as the $US is weakened by debt and printed currency and the rise of the BRICS trade block and its use of other currencies to trade within the group, bypassing US banks and the dollar entirely. This allows other nations to lower and sell off their dollar reserves, which they previously supported the US international debt with..
So this is the environment Biden was juggling in his term. And scraping by.. Enter Trump 2.0..
He decides that every deal the US ever did was unfair to the US. Even though the US has never signed a deal that was not inherently in its favor. And of course goes straight to tariffs, for any pretext at all. And this time the world saw him coming and recognised the emperor has no clothes and is pushing back with retaliatory tariffs, while leaving the US hanging and making other deals. Canada is opening deals with Europe for goods that America will now have to source elsewhere . And this story is repeated again and again. America was teetering on the edge of a recession anyway. Now that will be so much worse, with no cushioning for anyone.. And a depression that rivals the 1930s is increasingly likely.. And every move Trump is making on doubling down seems like it will only make things worse for America..
America got greedy . The world is calling its bluff and trump is holding rubbish.. The US economy was in dire straits before Trump ever showed up. But he has made it so much worse, faster than I believed possible..😷
Now lets talk about America. The T.Rex of global trade since WW2. It used its position as the only developed nation not to suffer industrial devastation to secure a beachead in every country in the west. It set the terms of trade by setting up a gold backed $ as the universal trade currency and mandated that only US banks could be used to transfer funds. Since then, if a nation is deemed to step out of line with American policy, it can be punished economically in terms of trade, including tariffs. And at each turn the rest of the world has remained docile, not wanting to get hit with the same big stick.
A few things have happened to hollow out the American mastery of trade. But far and away the biggest is the abandoning of the gold standard. (Note that the petrodollar deal that replaced it has recently expired) And the landscape of global trade has changed with the rise of China as an industrial giant.. But skipping ahead a couple of moves, enter Donald Trump. His first term saw a tariff war with China. And it seems he didnt learn a thing. (surprise surprise) But the rest of the world did. They smelled blood in the water as the $US is weakened by debt and printed currency and the rise of the BRICS trade block and its use of other currencies to trade within the group, bypassing US banks and the dollar entirely. This allows other nations to lower and sell off their dollar reserves, which they previously supported the US international debt with..
So this is the environment Biden was juggling in his term. And scraping by.. Enter Trump 2.0..
He decides that every deal the US ever did was unfair to the US. Even though the US has never signed a deal that was not inherently in its favor. And of course goes straight to tariffs, for any pretext at all. And this time the world saw him coming and recognised the emperor has no clothes and is pushing back with retaliatory tariffs, while leaving the US hanging and making other deals. Canada is opening deals with Europe for goods that America will now have to source elsewhere . And this story is repeated again and again. America was teetering on the edge of a recession anyway. Now that will be so much worse, with no cushioning for anyone.. And a depression that rivals the 1930s is increasingly likely.. And every move Trump is making on doubling down seems like it will only make things worse for America..
America got greedy . The world is calling its bluff and trump is holding rubbish.. The US economy was in dire straits before Trump ever showed up. But he has made it so much worse, faster than I believed possible..😷
70-79, M
