The stock markets are mot impressed. All of a sudden, the announcement last night seems cavalier now that the percentage figures quoted last night appear to have been a *** packet exercise. It is looking more like Liz and Kwasi moment that a well thought out plan. It will affect people's pensions over here but it will probably see sterling and the euro start to be more significant than the dollar.
Yes, it turns out the true equation is trade deficit ➗ import values. This means small countries that export to the US have no chance of getting a good deal. Vietnam dropped their tariffs to almost nothing ahead of this move and have been rewarded with 46% tariffs. Now they cannot cut tariffs to bargain with Trump… what can they do?
The average consumer can’t buy made in US products other than food. Cars, clothes, etc are all imported. If the orange one really wanted to have more things made in the US he would have done something similar to what Biden did with electric cars, give incentives to companies and consumers to buy made in US. Unfortunately all he did is make everything more expensive. To rebuild a textile industry, car parts, etc. would take years and lots of money. Will companies want to do that when they can just charge more for the imported products? They just charge the consumer and we buy less products but they don’t have to spend the capital and the time.
An interesting look at how tariffs will affect the car industry and no prize for guessing which car company is least harmed.
You guys on here seem to have a really warped view of America and I don’t get it. Of course it has its faults like any country. A lot of aspects could be better and there is a lot of poverty there considering it’s wealth and stature. However it’s still the home to most of the world’s largest companies and therefore most of the smartest people. The engineering talent in America is still unbelievable, despite the hollowed out manufacturing base. The tech, semiconductor, photonics, materials science etc etc etc that goes on there is truly next level. Most of the innovations in recent history have happened there. China is catching up and arguably overtaking, but make no mistake about how successful America has been. You guys seem to think the entire country is full of morons which simply isn’t the case. It’s very odd. I’m sure some professors will leave, but those are the ones that are probably captured by Marxist ideology anyway. The innovators and entrepreneurs will continue to create.
As it happens, the USA does have a domestic garment industry. I have bought jeans online, for half the price of a pair of Made in Bangladesh Levi’s, from a Vermont based company called American Apparel, who provide a mail order service to the U.K. Guess I won’t be doing that anymore.
John Crace's political sketch in the Guardian is always worth a read. The description of Trump as a dishonest bookie is extremely apt. https://not606.com/threads/politics-thread.323930/page-2711#post-18284250 "Shortly after 9pm UK time on Wednesday, the Sun-Bed King made his way to the White House Rose Garden, looking every bit the dishonest bookie as he held up a board with every country’s separate tariff. He might as well have been signposting the odds on a global recession. No country went untouched. The penguins, the sole inhabitants of Heard Island near Antarctica, are in for a hell of a shock the next time they try to flog some frozen fish to the USA. Let’s hope they were watching on TV."
The European perception of American manufctured goods is that they are poorly made. I think that goods that are recognisably American like Levi , Coca Cola , Pepsi etc will take the hit
https://x.com/amuse/status/1907937145417027838?s=46 American police force saying Democrat leaders are guilty of inspiring terrorism due to the attacks on Tesla’s. I find it funny how Trump told his protestors on Jan 6th to calm down and stay peaceful, yet the left are actively encouraging violence and riots. The hypocrisy of the left is genuinely incredible
I don’t think any of those products (at least not the ones on sale in Europe) are manufactured in the USA
Musk seems to be doing a pretty good job of burning down Tesla with no help from anyone. Meanwhile the Very Stable Genius is setting fire to the world’s economy. The imbecility of these overgrown teenagers is incredible
Interesting discussion on Radio 4 regarding the trade deficit regarding services as opppsed to manfucturing where America's position is far more favourable and where they could be seen to be ripping off the rest of the world. This was not pointed out by Trump. EU now looking at using its powers to limit access to U S services industry in EU but such measures as barring access to tenders Good to.see Canada and EU working together to thwart Us. Trump has threatened double their tariffs is they do this.
Been thinking about the tariffs more. Personally, I probably have bias in my views because of my feelings towards the orange one. If in an alternative universe Trump wasn't the Republican leader (or Harris had got in), what would I be thinking. Probably largely the same as now, but maybe it is the delivery of the tariffs that is getting our goat? As I said yesterday, if I was American, in the medium to long term this move is actually good for the country. EDIT: Also, listening to American people, they sound like the Brexiteers. They keep saying that initially things will be bad (ie worse off), but eventually it is for the greater good. Well that worked out well with Brexit.
Insofar that the current system is unsustainable and that America (or any other country for that matter) shouldn't be outsourcing all their industry and manufacturing, Trump has a point. However, his means of correcting the problem are completely wrong. Strategic subsidies would be more effective. The vote for Trump was a howl of anger against a patently unfair system. The Democrats should start looking at the crowds Sanders and AOC are drawing and maybe start asking questions to the super-rich like "did you really earn all that money fairly?"
