Friday, 4 April 2025

Tariff war chaos in the markets

I don't know whether Donald Trump anticipated all the chaos that would follow his declaration of global tariffs on all foreign goods coming into the country. But if he did, then he probably thought it was fine because in the end, he hopes, the United States will blossom and bloom and be the richest nation on earth bar none. So he won't mind that China has retaliated with 34 per cent tariffs on all American imports and he won't care if the European Union smacks 20 per cent tariffs on American goods. It's all part of the disruption strategy, or turmoil tactics, which he hopes will turn the globalised world upside down and convert the US into a Fortress economy. Foreigners keep out. And he's prepared to wait for this to happen, even if companies go under, the cost of living rises, and the world's trade patterns go to pot. But, of course, he won't be able to wait for ever. Sometime in the next six months, there is going to be an explosion of resentment and anger in the US, as prices continue to rise and rise. Trump loves, in facts needs, to be popular and if the polls show he is fast becoming the most unpopular president since, say, Nixon, then he might have to to change his tune and start backing down. But right now, it's full steam ahead.

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