The president’s reasons for imposing tariffs on Canada and Mexico keep changing (and none make sense).

Donald Trump just imposed a 25 percent tariff on virtually all goods produced by America’s two largest trading partners — Canada and Mexico. He simultaneously established a 20 percent across-the-board tariff on Chinese goods.

As a result, America’s average tariff level is now higher than at any time since the 1940s.

Meanwhile, China and Canada immediately retaliated against Trump’s duties, with the former imposing a 15 percent tariff on American agricultural products and the latter putting a 25 percent tariff on $30 billion of US goods. Mexico has vowed to mount retaliatory tariffs of its own.

This trade war could have far-reaching consequences. Trump’s tariffs have already triggered a stock market sell-off and cooling of manufacturing activity. And economists have estimated that the trade policy will cost the typical US household more than $1,200 a year, as the prices of myriad goods rise.

All this raises the question: Why has the US president chosen to upend trade relations on the North American continent? The stakes of this question are high, since it could determine how long Trump’s massive tariffs remain in effect. Unfortunately, the president himself does not seem to know the answer.

In recent weeks, Trump has provided five different — and contradictory — justifications for his tariffs on Mexico and Canada…

…more in the article.

  • banghida@lemm.eeEnglish
    1·
    5 hours ago

    But he was also intelligent. He presumed that the bulk of money out there is comically dumb money, and he played that mass to his benefit. I remember watching 5,6,7 years ago how he would deliberately make Tesla stock look bad in the short term, to lure in suckers to short with high leverage, only to promptly reverse it, destroy the shorts and use their capital to make a new all time high. All while perpetually rewarding those who just hold and trust the man at the helm.

    If this method sounds familiar, it was also used by the Tether clan to propel Bitcoin. But with a healthy dose of freshly printed fake money as well.