The shock of the sharp power in the Trump tariff

There are cases in which customs tariffs are considered a useful tool for treating trade deficit, or to protect the main sectors of the country’s economy. Then there are cases in which you accuse A handful of penguins on an uninhabited island Currency manipulation. Guessing which one we live in?

This is the fast food for the multiple definitions announced by President Donald Trump on Wednesday afternoon. In addition to the Hurd islands occupied by the Penguin and McDonald’s Islands, the customs tariff aims to the British Indian Ocean, whose only occupants live on a joint military base on Diego Garcia. Yes, the United States is exposing a mutual tariff against its forces.

Then there is a tariff against countries that have actual goods and services on which consumers depend. China: 54 percent. Vietnam: 46 percent. Cambodia: 49 percent. South Korea: 25 percent. It will not affect any corner of the US consumer. Prices will rise. The stock market is escalating. recession Waiting on the horizon. the The technology industry will be turned upside down. Mark Kobe, note the billionaire, is encouraging People who store consumables before it is too late.

It is a reckless thing, it is ridiculous, and all that Donald Trump clearly said is that he would do it in the path of the campaign. True, he did not know how to go methodology It will be – you can read more hereIt is sufficient to say that he is completely separate from the facts of international trade – but he promised loudly and repeatedly to target to glory.

The aforementioned goal It is the return of manufacturing functions to the United States, which is somewhat similar to the resurrection of the Dodo. The United States continues to make a lot of goods. It is second after China in annual production, according to World Bank. But many industry jobs were Replace it with automationA bottle you can not re -make. The high costs of local employment means that the products made by the United States will be more expensive, and American consumers have constantly rejected. All this was already true in Trump’s first state. It is more than that now.

We let us say that a large number of companies decided to return a shore or create factories in the United States. The schedule of these decisions and implementation is measured for years, if not contracts, and the follow -up can be suspended. (only Ask Foxconn) So what happens in the meantime?

The logical basis has all the weight of the soap bubble. There is no world in which the United States suddenly manufactures all the elements that the country decided to target. There is a 47 percent tariff on Madagascar now. Do you know why the United States suffers from a trade deficit with Madagascar? It produces vanilla. We do not. Unless we suddenly prepare vanilla assembly lines in Ohio, this does not change.

But Perhaps Trump’s alleged liberation day is just a trick negotiating. “Everyone is sitting, take a deep breath. Don’t decrease immediately. Let’s see where this goes,” He said Treasury Secretary Scott Payette on Wednesday. “Because if you review, this is the way we deal with.”