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submitted 4 months ago by SLVRDRGN@lemmy.world to c/world@lemmy.world

Donald Trump just imposed a 25 percent tariff on virtually all goods produced by America’s two largest trading partners — Canada and Mexico. He simultaneously established a 20 percent across-the-board tariff on Chinese goods.

As a result, America’s average tariff level is now higher than at any time since the 1940s.

Meanwhile, China and Canada immediately retaliated against Trump’s duties, with the former imposing a 15 percent tariff on American agricultural products and the latter putting a 25 percent tariff on $30 billion of US goods. Mexico has vowed to mount retaliatory tariffs of its own.

This trade war could have far-reaching consequences. Trump’s tariffs have already triggered a stock market sell-off and cooling of manufacturing activity. And economists have estimated that the trade policy will cost the typical US household more than $1,200 a year, as the prices of myriad goods rise.

All this raises the question: Why has the US president chosen to upend trade relations on the North American continent? The stakes of this question are high, since it could determine how long Trump’s massive tariffs remain in effect. Unfortunately, the president himself does not seem to know the answer.

In recent weeks, Trump has provided five different — and contradictory — justifications for his tariffs on Mexico and Canada...

...more in the article.

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[-] massive_bereavement@fedia.io 250 points 4 months ago

Putin said: "go forth and break shit" and here we are.

[-] socialjusticewizard@sh.itjust.works 89 points 4 months ago

yup. it's successfully costing america its allies.

It's not inappropriate though. I've been saying for years Canada should not be so closely allied with such a fickle country.

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[-] Today@lemmy.world 149 points 4 months ago

Apparently It's supposed to get rid of the browns and the gays and the women and everyone else until it's just a bunch of old white men sitting around, counting money, and masturbating to AI porn? Kind of like a hateful gross version of Scrooge McDuck.

[-] tiefling 39 points 4 months ago

It seems to be working, I signed my ticket out of here. I'm a brown and queer woman. Just need to survive until immigration goes through.

[-] P1k1e@lemmy.world 19 points 4 months ago

Godspeed friend, hope this place will be worthy of you again someday

[-] ramble81@lemm.ee 12 points 4 months ago

If you don’t mind, how are you pulling it off? Just trying to get ideas too.

[-] tiefling 21 points 4 months ago

Work transfer through my day job. I will note I'm taking a 50% pay cut for this, but the mental security and new friends will be worth it

[-] otto@sh.itjust.works 21 points 4 months ago* (last edited 4 months ago)

Scrooge McDuck was also pretty awful. They had to invent a nemesis for him, Flintheart Glumgold, just to make him not seem so bad by comparison.

[-] dojan@lemmy.world 12 points 4 months ago

Donald is in indentured servitude after all. Gnarly man.

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[-] CosmicCleric@lemmy.world 120 points 4 months ago

And economists have estimated that the trade policy will cost the typical US household more than $1,200 a year

Remember this, when you hear about tax cuts for the wealthy.

~This~ ~comment~ ~is~ ~licensed~ ~under~ ~CC~ ~BY-NC-SA~ ~4.0~

[-] Hubi@feddit.org 30 points 4 months ago

Funny, isn't that the exact amount of the stimulus checks he handed out during his first presidency?

[-] Damage@feddit.it 12 points 4 months ago

That is... less than I'd have guessed.

[-] ptz@dubvee.org 28 points 4 months ago

...willl cost the typical US household more than $1,200 a year...so far.

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[-] notsoshaihulud@lemmy.world 76 points 4 months ago

All this raises the question: Why has the US president chosen to upend trade relations on the North American continent?

It's because the trade agreement trump's unhappy with was made by a raging moron.

[-] thejml@lemm.ee 66 points 4 months ago

For everyone else following along, the USMCA that was put in place after Trump renegotiated NAFTA in his first term… was made by Trump. So he’s unhappy with his own legacy. Which seems on brand for him, tbh.

[-] OutlierBlue@lemmy.ca 25 points 4 months ago

At the time he was extremely proud of it. It was the best deal ever made.

[-] ryper@lemmy.ca 14 points 4 months ago

Part of the agreement allows for a review next year and his complaints could have been addressed them, but apparently negotiated such a lousy deal he can't wait that long.

[-] SreudianFlip@sh.itjust.works 18 points 4 months ago

They are tanking markets for both the fire sale bargains and to hurt the poor more, so they can direct the resulting anger towards projects like territorial expansion and government privatization.

[-] Benjaben@lemmy.world 12 points 4 months ago

Thank you. Stated goals and actual goals for these people are always entirely independent, if they align it's just coincidence / convenience. People need to stop being so credible and debating this shit on its stated terms, fascists don't debate in good faith.

[-] thesohoriots@lemmy.world 25 points 4 months ago

The same moron who sunk casinos somehow

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[-] NameTaken@lemmy.world 11 points 4 months ago

Hope that's sarcasm because the USMCA was signed and implemented by Trump

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[-] FlashMobOfOne@lemmy.world 61 points 4 months ago

Just my opinion as a layman: the tariffs give his corporate backers all the excuse they need to jack up prices even higher.

[-] MuskyMelon@lemmy.world 44 points 4 months ago

And when he takes the tariffs off, the prices never go back to the original starting point.

[-] Benjaben@lemmy.world 41 points 4 months ago

That, plus it seems very likely that he and friends are just manipulating the market to trade on the predictable moves he's causing. Ya know, the kinda stuff that earned Musk some mild hand slaps and theatrical pearl clutching (in addition to giant financial benefits) in recent years.

[-] banghida@lemm.ee 13 points 4 months ago

It's basically how Musk got rich. Intelligent market manipulation.

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[-] Yojimbo@lemmy.ca 36 points 4 months ago

Cuz he is a puppet, a Russian asset and generally not an intelligent person nor a good businessman.

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[-] R0gueS4t3llite@infosec.pub 36 points 4 months ago* (last edited 4 months ago)

I never liked that many seem to be of the idea that Trump is an absolute buffoon who doesn't know what he is doing. He and his goons are not headless chickens. They are not stupid, and know incredibly well what they are doing and why.

You don't get to win an election twice if you're as much of an idiot as most make him out to be. If we keep underestimating our 'opposition', we will continue to be defeated.

See this article for more: https://unherd.com/2025/02/why-trumps-tariffs-are-a-masterplan/

TLDR:

In this article, Yanis Varoufakis analyzes Donald Trump's economic strategy, arguing that it is more sophisticated than his critics assume. Trump's focus on tariffs is part of a broader plan to reshape the global economic order, which Varoufakis describes as an "anti-Nixon Shock." Trump believes the U.S. has been exploited due to the dollar's role as the global reserve currency, which he sees as a burden rather than a privilege. He aims to weaken the dollar to boost U.S. manufacturing and reduce trade deficits, while maintaining its reserve status to fund U.S. deficits and military power.

Trump's plan involves using tariffs to pressure foreign central banks to lower interest rates, thereby depreciating their currencies relative to the dollar. This would offset the price increases caused by tariffs on U.S. consumers. The second phase of his strategy involves bilateral negotiations with key countries, leveraging tariffs and security threats to force them to appreciate their currencies and make concessions, such as buying more U.S. goods or relocating manufacturing to the U.S.

Varoufakis acknowledges the risks, including potential domestic backlash from Wall Street and the possibility of foreign countries, particularly China, creating an alternative financial system. However, he argues that Trump's plan is coherent and should not be underestimated, even if it diverges sharply from traditional economic thinking.

[-] FeatherConstrictor@sh.itjust.works 23 points 4 months ago

The thing is, I don't doubt there is an actual reason why these plans have some more intelligent purpose behind them; I doubt that Trump is the one thinking of this. I'm of the belief that Trump has a bunch of yes men around him that are smart and able to coerce him to do these things through careful manipulation strategies and feeding into his ego.

[-] WraithGear@lemmy.world 20 points 4 months ago

The project 2025 people already had every executive order and move lined up ready for him. No understanding required .

[-] Jollyllama@lemmy.world 23 points 4 months ago

That's definitely someone's opinion of what they are doing. I think he's fallen victim to looking really hard for a plausible reason for emotional behavior. Trump and his admin seem more hell bent on gaining leverage in order to increase greatness and power over others and eventually profit. They aren't looking to save or kill the dollar or reset the economy. In my opinion as an uneducated person they want to deregulate then tank the markets to create an environment where the wealthiest will buy up the discounted assets and profit when the economy swings back. Nothing more than a shortsighted opportunity to consolidate power and wealth, the same way he is trying to consolidate power into the executive branch.

[-] Hacksaw@lemmy.ca 14 points 4 months ago* (last edited 4 months ago)

Dude that makes no sense at all. He wants to depreciate the dollar by putting on tariffs, an action you yourself admit depreciates all OTHER currencies, thereby increasing the value of the dollar?

Then after that he'll "negotiate" to have the other countries to appreciate their currencies? By buying US goods and companies?? Both of those things appreciate the US dollar. China has been selling their goods to the US (something which should appreciate their currency) without appreciating their currency by buying property and companies in the US so they never have to use the US dollar to buy their own currency. This increases the value of the dollar while decreasing demands for the Chinese currency. This has been widely seen as unfair currency manipulation by China.

Things that increase demand for US dollars such as buying US goods and investing in the US APPRECIATE the value of of the US dollar. I haven't read the article yet, but I hope your summary is incorrect, because Varoufakis is generally a very intelligent left wing thinker and I would be surprised to see this kind of gaffe in basic economics.

Edit: here is a link to the article since the one above didn't work for me.

https://www.yanisvaroufakis.eu/2025/02/21/donald-trumps-economic-masterplan-unherd/

While tariffs would work against Trump's plan (by deppreciating foreign currencies) they give Trump revenue he can spend with congressional approval. Then for the countries that make a deal he'll either force them to appreciate their currencies by swapping US dollars for their own currency (to depreciate the dollar), OR make them buy very long term US bonds (stabilizing the US debt markets) and buying US weapons (diluting the cost of US military R&D). Trump hopes this lets him depreciate the dollar while keeping it as a reserve currency (having his cake and eating it too).

[-] ameancow@lemmy.world 11 points 4 months ago* (last edited 4 months ago)

I don't doubt the reputation of the writer or his general knowledge of economics...

But this is coping. The Trump administration is trying to wave their hands around and create a giant fuss for people like us and this writer to speculate on and create debates and panels to think about... while he and his people simply walk out of the white house with the treasury and all the inside investment opportunities they will ever want.

He's just making chaos, plain and simple. These ideas about his master plan to disrupt the world's reliance on the US dollar? Distraction and coping.

I agree this administration is more clever than we give them credit for, but any house thief can step up their game and pull of a heist when they set their mind to it, it's not some kind of magic skill. If anything, I think it's harmful to assume Trump is at all smart or has a plan because this makes a lot more assumptions than the most simple answer which is almost always the correct determination. He is making a mess because his ONLY plan is to make you think he has a plan. He does this with literally everything he says or announces, why would anyone think this is different? This is EXACTLY the fucking delusion I was railing against in another comment. There is no plan. Nobody is coming. Stop thinking others are smarter than you or have a backup plan.

My evidence? We've done all this fucking before, this is part 2 of a failure of a presidency. He didn't change the world before, he won't here. (Other than diminishing the US role in geopolitics so Russia can take center stage, all he really wants right now)

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[-] sasquatch7704@lemmy.world 30 points 4 months ago* (last edited 4 months ago)

I know why he did it. Because that's what his best best friend from Kremlin said and his two last working brain cells are in vacation playing golf.

He probably doesn't understand that if US stops all trading, will become just a bigger North Korea with nukes.

[-] sundrei@lemmy.sdf.org 29 points 4 months ago

He had the idea to raise tariffs, and he believes all his ideas are really good, so he followed his own good advice and raised tariffs, dead simple.

[-] 0x7466@lemmy.world 29 points 4 months ago

Of course he doesn't. He should be in elder care not in the White House.

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[-] AynRandLibertarian@lemmy.world 26 points 4 months ago

Market manipulation. If you can tank the stock market at a time YOU know well in advance, then you stand to profit "tremendously".

He or people in his stead might have purchased put options ahead of the anouncement of tariffs. -> profits When he then says "it was just a prank brooo!" he can make money by buying the now devalued assets and sell them as soon as they recover. rinse repeat.

I smell market manipulation maybe I am mistaken this smell and it is really the smell of mental instability....

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[-] Yodan@lemm.ee 26 points 4 months ago

Because his only job now is to sign any papers handed to him by his posse of self enriching gremlins. He doesn't need anyone's vote anymore, he doesn't need anyone's money (except if it starts with a B) and doesn't care anymore because he will likely die in office. If he signs horrible shit billionaires around him want, then he gets to coast as president, no thinking involved. This is what he is doing.

[-] Litebit@lemmy.world 25 points 4 months ago

Market manipulation. He is also a TV show host, so he is a showman. He likes creating drama.

He is famous for bad management, causing his casinos to go bankrupt. His management style is going to bankrupt US and somehow make him richer.

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[-] chetradley@lemmy.world 22 points 4 months ago

Tariffs allow Trump to pay for his tax cuts to the ultra wealthy by stealing from the working class, without them knowing. He also gets to position himself as a strongman and negotiator. There you go.

[-] PersnickityPenguin@lemm.ee 20 points 4 months ago

It’s part of their plan to eliminate the IRS and federal taxation, to be replaced by a universal sales tax. However, trump doesn’t have the authority to do that. But he can tariff. And a tariff is a little bit like a sales tax.

Therefore, we get tariffs.

Now, the other problem is that the tariff revenue is going to be like 1/10 that of the IRS tax revenue, which will require a 90% reduction in federal spending. Including defense, research, healthcare, and social security. Can’t collect social security tax if the IRS doesn’t exist either, so social security is getting axed.

It will of course make 56 million seniors homeless, but thats a small price to pay for a 15% pay bump for me!

[-] ininewcrow@lemmy.ca 18 points 4 months ago

Market manipulation .... upset the system .. make it dive ... buy cheap ... sell them high

Keep doing this for the next four years until you become king of the world!

[-] Geobloke@lemm.ee 15 points 4 months ago

It was really weird when he was telling Zelensky during that meeting that he and Putin had been through hell with the collusion investigation. Like why would putin care?

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[-] AynRandLibertarian@lemmy.world 15 points 4 months ago

Does he know where he is, what time of day, or even which day of the week? ok maybe we should see if he can repeat this: "Person, Woman, Man, Camera, TV" he seemed to pride himself in his ability to allegedly be able to do so..... .....allegedly....

[-] meowmeowbeanz@sopuli.xyz 15 points 4 months ago

Trump's 'beautiful' tariffs are just ugly taxes on consumers and businesses alike.

🐱

[-] TimeChild@sh.itjust.works 13 points 4 months ago

The big corps can weather the storm, smalls will have to sell, consolidate and monopolize is the plan as I see it

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[-] HawlSera@lemm.ee 11 points 4 months ago

Because at his age it was easier than getting penis-enlarging surgery.

[-] Floon@lemmy.ml 11 points 4 months ago

The chaos is the point: make nothing normal, make nothing certain, and he can be free to do anything.

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this post was submitted on 05 Mar 2025
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