Sunday, 2 February 2025
Trump goes to war with tariffs
So, from Tuesday the US will impose 25 per cent tariffs on all goods coming into America frrom Canada and Mexico, and ten per cent on Chinese goods. This is Donald Trump's first war since taking office for the second time on January 20. He said he'd go to war and he has. It's a trade war, not a military one. But all the same it will mean these countries will suffer trade casualties. But then so will the US. Because as in all wars, shooting ones and otherwise, the opposition fights back, and thus China, Canada and Mexico will all retaliate with tariffs of their own on American exports into their countries. Trump doesn't seem to care. He is playing the long game and hopes to Make America Great Again by punishing countries who dare to export to the US but don't do so on Trump's terms. Trade wars are generally disastrous. They affect the whole planet and no one really gains. They just lose. Again, Trump cares not a jot. This is the way he likes to do business with the outside world, never mind the blowback that American companies will have to endure. Trump's aim, presumably, is to encourage American companies to produce the same goods which they are currently importing. The trouble is that the companies involved import whatever it is because they are cheaper which is better for their financial spreadsheets. How long the war will continue we have no idea but at some point there will be a breakpoint and it may well be American firms, not Chinese, Canadian or Mexican companies who will most lose out.
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