Tech companies’ worst nightmare ahead of Donald Trump’s election has already come true, as the US and China are now fully engaged in a tit-for-tat trade war, where China claims it expects to be better positioned to withstand US blows long-term.
Tech companies’ worst nightmare ahead of Donald Trump’s election has already come true, as the US and China are now fully engaged in a tit-for-tat trade war, where China claims it expects to be better positioned to withstand US blows long-term.
So basically everything the US imports from China is going to suddenly cost 84% more. I’m really struggling to see Trump’s end game here, because when domestic inflation inevitably gets out of control, the populace is going to get angry and he’s going to become deeply unpopular.
The only two possibilities are 1.) He’s purposefully wrecking the US economy, either to end US global hegemony and appease the Russians or to appease the tech billionaires and Heritage Foundation-types who want to destroy the federal government, or 2.) He’s a moron who doesn’t understand even basic economics
What bots are upvoting this??? Lol
If I’m in a generous mood, I think I can sort of explain it, but none of it comes from Trump, he’s just not smart enough to give much of a shit. This is more the Project 2025 types.
It seems to me that Republicans have decided that a series of decisions that were made in the 90s (largely authored by big business and therefore, Republicans) that… for lack of a better term - liberalized global trade - were a mistake, and they are intent on reversing them at all costs.
Decisions like NAFTA, PNTR/WTO for China, etc. These things led to cheap goods which kept inflation low and profits high for US corporations. But they also largely wiped out domestic manufacturing and led to reliance on China for a lot of really important shit. It’s hard to understate that by 2020, China controlled 80% of rare earth supplies and 90% of global electronics manufacturing.
They want to bring us back to the way things were in the 1910s for social policy (eliminate both abortion and a woman’s right to vote) and they want us back in the 80s when it comes to like domestic trade policy and manufacturing.
The problem, of course, is a) Republicans created the problem in the first place (granted with Democrats’ help) and b) “at all costs” means “without regard to whether or not it fucks the average US citizen” which it most certainly will. So we all get to suffer yet again so that the billionaire class has its cake and eats it too.
I wonder if they thought that through. The US might not have an economy left by the time the factories replacing foreign products are set up.
It’s more simple than that. It is consistent with everything he does, it’s about achieving more power and wealth. The blanket tariffs hurt everyone and they want businesses to offer the administration a pledge of loyalty (campaign contributions, positive press, fire people in their company that they don’t like, etc) in exchange for exceptions on tariffs that they want.
Problem with that hypothesis is there’s plenty of big businesses that have been kissing his ass, but nobody got an exception from the current round of tariffs. See apple and their stock price
why not both!?
Simply put, he truly believes that other countries are “taking advantage” of the US: https://www.youtube.com/watch?v=n7st2oG5AwU
It stems from a zero-sum world view, where every trade is someone gaining or losing something, reminiscint of old European mercantilism: https://en.wikipedia.org/wiki/Mercantilism
…Which Europe figured out didn’t work by like 1800, something they teach in US history classes.
At a more basic level, this is likely another manifestation of Trump’s narcissistic personality disorder. He genuinely cannot conceive of sacrifice, service, or giving of himself, he’s only interested in what he can take from you, whether that’s money, reputation, or adoration. Now it’s playing out on the global stage