ATTENTION WALMART SHOPPERS!
A tariff is, essentially, an overreaching, communistic fedral guvment sales tax that Trump is slapping onto pretty much everything that you buy at Walmart. Yes, it’s a sales tax applied to the wholesale price, not the retail price, but a sales tax nonetheless.
Are the Chinese and Mexicans going to be paying Trump’s Walmart sales tax?
Only if they shop at the same Walmart that you do.
9
The increase in prices we face should be called "The Trump Tax" by all our Democratic presidential hopefuls, loudly and often (as suggested by Bill Maher).
11
This shows how dependent the American economy is on the labor of workers around the world. Those people migrating from Central America (not Mexico) used to rely on subsistence agriculture. But once they were displaced from their land and their economies became tied to the world market, their livelihoods ceased to be. So we have everything interconnected. Yet we are throwing stones from our glass house.
Now Mexicans who no longer migrate get blamed for dynamics that scape their control. Factories built with transnational capital now populate its territory taking advantage of their plentiful and cheap cost of labor. As negotiating tactic may not work to disrupt this commerce. No wonder transnational capital is concerned.
The ideologues that still believe in pure national economies, like those who translate that into its racialized homologues, don’t want to accept the futility of artificially created boundaries vis a vis the development of capital and the world market.
Very dangerous dreams of those who buy nationalistic ideas in this context. Its core is full of rage and destructive intent not unlike those who believed in the fantasy of third Reich
8
If these multi-front, escalating trade tariffs continue, January 2021 could resemble January 2008, a real bummer for an in-coming administration.
2
I remember Jan 2008 a bit differently. I still have a yellowed newspaper from the Inauguration of President Obama. That was a proud day.
2
I have always heard from my Republican friends about the virtue of free markets and competition. It was almost an article of faith. They never acknowledged that the world was a lot more complicated then that until now, when it gives the a chance to appear like populists and shore up their political base. Liars and knaves.
9
I'm sure I'm not as well versed in this as the Colluder in Chief, but if people are leaving poor countries to come to a rich country I don't see how damaging the original countries poorer convinces them to stay home.
3
rich? check the debt figures and deficit figures. Canada and the EU are much richer than us.
3
with Trump you never know but I suspect he is trying to bully Mexico to make a public announcement that they will enforce border patrol even if they do not, ultimately helping his election efforts. there is no way his goes to 25 percent, why I bought STZ today
4
It's obvious, Mueller's news conference really triggered trump.
It happens every time, something happens that frightens him and he lashes out in whatever direction he can to deflect attention away from the thing that's really bothering him.
16
Trump's war on America continues.
19
Uniting the whole world against the US ?
17
Love it! What a country!
Trump is a like a crazy carnival barker whose bark gets louder every day. Who knows what he will do next!
The GOP is a goose stepping hoard bullying their way across the land, maintaining and cementing minority control though outrageous gerrymandering and in your face voter suppression, all with the support of the Supreme Court.
And all the while, Mitch McConnell is stuffing the Courts with more right wing ideologues by changing all the rules.
And the Democrats, where are they? Cowering in the corner frightened by their own shadow.
What could go wrong?
15
A search for “Donald Trump bankruptcies” finds this man’s business acumen is a sham. Has he had any businesses that “made money” without taking questionable advantage of business deductions on his tax returns? Haven’t 5-6 of his personally run corporations had to declare bankruptcy?
God help us.
14
Oh to have advance warning about Trump's tariff threats. Could make a bundle. Oh wait - that's insider trading! Make money on the way down. Make money on the way back up. Nice if you have access.
9
What does his puppet-master Putin care whether or not Trump is re-elected? Trump was not put into power by Putin in order to get re-elected, but only to do as much Manchurian Candidate damage us as possible in his untouchable four-year reign of economic and geopolitical terror. Don't be surprised if Trump gives his puppet-master a suicidal American war with Iran for dessert, since clearly no one can stop him, just as Putin so clearly understood. Putin knows Republicans would have no choice but to stick to Trump like glue, especially since Fox and Rush are always back Trump, which is the same as giving us the Putin party line, just as well as Pravda. Elections have consequences, especially ones controlled from Moscow.
9
I wonder if Trump gave a "heads up" to his pal,Carl Icahn, so that he could "short" the stock of US companies that would be hit hard by the tariffs on Mexican goods.
Please remember, in the 1980's and 1990's, Trump made some serious coin in buying the stock of US companies, and then releasing "News" that he was going to buy into these same stocks. After the stocks rose in price, he sold those stocks and made some serious profits. Of course, he never bought stakes into those companies.
9
How many houses does Trump need to burn down before it dawns on Republican leaders that their man in the White House is a pyromaniac? And, once they finally realize it, how long will it take for them to realize that they should stop sending him matches?
9
Now we know why Putin wanted Trump as president. There is nothing like economic chaos to make the world ripe for dictators and despots to take control. Instead of making America great again trump has made the world crazier again.
The notion the United States is any kind of stabilizing economic, political, or moral influence in the world has been destroyed by Trump for generations to come.
22
This is a rare instance in which the interests of the 0.1% may correspond with those of working class Americans. The sudden imposition of significant import taxes will hurt families and business owners alike.
But should we expect Congressional Republicans to join with Democrats passing veto-proof legislation rescinding the authority of the President to unilaterally impose tariffs?
Of course not.
10
With the mueller investigation now closed and inequality still growing, it’s possible advisors in the White House have calculated that a strong stock market is irrelevant to a ‘base’ that is still struggling financially. If that’s the case the market could be in for a real drop lower and the economy could be in for a major contraction no matter what the Fed does. Maybe President Trump will surprise everyone and follow through with the nationalist themes he has pushed for decades, and doesn’t care if the market tanks after all ... Look out below, capitalism works both ways — long live Arb!
New International Tariff Trade policy and formulas gets my yes vote. Continuing Nationalistic Tariff Protectionism & Privilege policies get my no vote. The former can better stabilize & lift economic conditions and growth for workers, nations and communities throughout the world. Tariff value built on mathematical formulas can equalize international variables such as nation resources, production, resources, wages, employee benefits, currency, taxation, environmental welfare etc. Widening Corporate Globalization potentials while minimizing the caustic foreign exploitation and conflicts of economic aggression that have plagued humanity’s past and present.
Of course I sincerely doubt that Trump or his minions have any desire to do right by their international Tariff approach.
4
Few points:
1) This is merely an attempt at a distraction from the Mueller Report and increasing calls for impeachment. Trump literally tries to dodge and weave every time the news is bad. It's not working because most people (Trump excluded) can focus on more than one thing at a time.
2) It's an attempt to claim credit for cyclical drops in immigration at this time of year (people aren't as willing to march through Central America in the summer - it's too hot); hence immigration naturally declines from those countries).
3) It's an attempt to divert attention from the failures caused by the China tariffs. Tariffs again! This time with feeling!
9
It’s also possible Bannon and Miller are telling him his base isn’t happy with the stock market and low unemployment because it’s not working - for them, and he’s now backed into a corner trying to squeeze blood from a stone of debt.
3
Shouldn't we be concerned by now that the only strategy Trump has for trade is tariffs?
3
The market has been acting as if the tariffs are just a negotiating ploy, but he is Tariff Man and wears no mask. Look out below, it’s coming!
4
Dear investors,
2017: Trump Bump
2018: Trump Pump-and-Dump
2019: Trump Slump
Invest accordingly.
9
Trump likes tariffs and distrusts global trade. He doesn’t see tariffs as a necessary evil to achieve trade terms. People who think Trump is looking for an exit ramp from trade wars aren’t paying attention.
5
Trump's vision has always been limited to theatrics, to how things look and sound to his base and how they reflect on his own image, rather than their real world effects. My guess is he thinks he looks tough "standing up" to China and that he sees his escalation of tariffs on Mexico, as punishment for their supposed "failure" to stem the flow of Central American immigrants, as great theater for his base, playing to their biases and the desire of many of them to preserve their white privilege.
The notion his tariffs might crash the global economy in the process has never entered his mind and probably wouldn't concern him if it did. In his mind's eye he is the tough guy standing up for America, and if other countries get hurt, that must mean he wins. Even worse, his vision is so limited he actually appears convinced he really can extract the United States from an economy that is truly global, and my guess is he will not listen to anyone who tries to tell him otherwise.
We are being led by a would-be tough guy who rejects real facts in favor of "reality" theater. The only silver lining to the ominous black cloud gathering on the economic horizon is that if he insists on orchestrating this show to its conclusion, he will go down with the curtain. Though heaven only knows what will be left of the rest of us.
30
That’s correct; Trump does not see trade as a win win, and if he did he wouldn’t want it. The point of the tariffs now is to slow China’s rise or beat on Mexico or give exemptions to cronies in his continuing monetization of the presidency. There will be no deals.
10
"Look what I can do. Stock market goes down. Stock market goes up." -DJT
Who is profiting from this?
6
@MidtownATL
"Who is profiting from this?"
Corporations, Wall Street, and banks.
But don't worry. When the economy tanks, and it will, the taxpayers will bail out the corporations, Wall Steet, and the banks. Just like always! Ask any Republican or Democrat!
5
I am an economics professor. I’ve read this article a couple of times trying to make sense of his reasoning. The only conclusion I can come to is that Trump is as stupid as I thought he was.
60
No mr trump, YIOU stop the immigrants and refugees! You claim to be able to do that all by your lonesome. Leave Mexico out of your schemes, scams and cons.
Impeach the i-word! This is his way to retaliate against Americans because of the growing impeachment movement. Indeed, he’ll tariff the Dems next.
Perhaps Mexico should retaliate with their own tariffs on American tourists an industry unless trump halts the demand for illicit drugs in America that has decimated Mexico. And it needs to be resolved by June 10th.
Deutsche Bank says it will add an average of $1300 to a new car. Don’t forget the sales tax on that $1300! Imagine that, paying a sales tax on a tax - how trumpian. Orwell's world sounds so appealing right now.
7
"On some great and glorious day the plain folks of the land will reach their heart's desire at last, and the White House will be adorned by a downright moron."
- H. L. Mencken, July 26, 1920
28
Once again Trump it's playing to his base of poor fools. They will simply read " oh, punish Mexico for its immigration policies. oh yeah! "it will take awhile and then they will see there fruit and vegetable prices rising so fast it will make their heads spin. But by then God willing and the creek don't rise there will be a Democrat as president that they can blame.
5
I love how you label this as “protectionist trade policies,” like he knows what that phrase means.
7
Trump is acting like the spoiled kid he is. He has not got his way as judge's have stopped many of his plans and Congress has done nothing with immigration and the people keep coming. Mexico has not bent to his will so he reverts to threats and he is just too stupid to realize he is hurting American. He could care less who gets hurt as long as he gets his way.
3
I used to think that Trump kept pushing the envelope in his life just to see what he can get away with. I don't think that explains his behavior. I think Donald is pushing the envelope until he confirms his worst fear: that he is a calamity and a failure. There is no reasonable alternative explanation for his economic idiocy that I can think of.
We will all pay for this presidency. With luck and a little wisdom, Trump will be thrown out in 2020, without having realized his, and our, worst fears.
12
Here a few charts were the US is almost number 1:
Inequality: 5
https://data.oecd.org/inequality/income-inequality.htm#indicator-chart
Poverty: 4 (ahead of Turkey and Mexico)
https://data.oecd.org/inequality/poverty-rate.htm#indicator-chart
Poverty Gap: 4
https://data.oecd.org/inequality/poverty-gap.htm#indicator-chart
Measures like this will further push you down the road. However that all takes a bit of time, until it’s reflected in the data, just wait a year, and you will be close to first in all of these statistics. Not a good outlook, right?
9
@Abara while your points are very well taken (unfortunately), don't forget, we have a president that doesn't read. Maybe if you could youtube it. Phonetically.
Btw, that other i-word, infrastructure.... if you had a graph for that, we'd be way down the list there too, since countries like Mexico and China both have more modern and well-maintained infrastructures.
3
Memo to Mr Trump:
This is the United States of America, not one of your casinos.
15
Trump's history as a businessman is evident to all- multiple bankruptcies, saved by mysterious infusions of capital from Russians.
His psychological rut is to constantly assert his strength by bullying. Bullies are always very anxious about their power and imagine acting boldly will dispel their fears. It is a pathetic maneuver.
Trump's economic posturing, threats & tariffs are completely in this mold- bluster as policy. He is appealing to his base whom he believes requires relentless demonstrations of muscle...and to the weird bottom feeders who now compose his advisers.
With Kushner, Miller & Kudrow as well as wobbly sycophants & opportunists whispering in his ear, his panic about 2020 is obvious.
These tariffs are just more dangerous flailing. America & the global economy becomes another of his casinos- 'managed' with boldly stupid moves to 'prove' he isn't impotent & foolish.
10
Trump thinks China is going to cave on his tariffs pressure...China the country who in just the 20th century alone lost tens of millions of people in civil wars, tens of millions of people in famines (man made and natural), tens of millions of people from outside aggression and tens of millions of people under the murderous leadership of Chiang Kai-Shek.
These are the people that Trump expects to cower under the threat of tariffs...
14
For the next foreign country DJT and his administration chooses to demonize tariffs continue to be the cudgel of choice. Each new tariff is rationalized by yet another phoney national emergency declaration. DJT and his administration offer explanations only Pollyanna could believe about who pays a tariff and how resurgent US manufacturing will replace goods no longer arriving at US ports. This incessant wolf crying administration may well produce a genuine emergency should rare-earth imports become a casualty and US manufacturers no longer have sufficient supplies of this and other raw materials.
4
Each time Trump pushes his own buttons using random policy attacks due to some type of anger management issue, it ripples through the economy and the world. Problems are not solved on the world stage with all retaliation all the time. It takes time to hurt the economy, but Trump is doing his best to disrupt most areas. Why anyone would think this is reasonable boggles the mind--yet he garners support as his retaliation code scares his minions.
Right now, oil prices are dropping. And though this is good for the consumer, the oil fracking industry cringes needing higher prices to pay off massive debts. Those debts along with very large corporate debts overall—more than in 2008—point to an uncertain future with lots of pot holes and unknown unknowns. (and US deficits are not in the picnic zone either.)
2
If I were trying to move the market in a particular way, I'd be schmoozing Ainsley and Hannity. Every word that comes out of their purty mouths, the old fool acts on.
5
Trump's tariff plan is exactly the same as what Bernie Sanders had been saying when he ran last time against Hillary. That was the big knock on Trump for conservatives. If Bernie were President right now, and had the same exact trade policies as Trump is pushing, does anyone really think the title of this article would be 'Sanders Bets the U.S. Economy on Tariffs.' Of course not, this is another example of narrative news hyperbole and Trump Derangement Syndrome at the Times. For goodness sake the article is quote economy professor's blogs from Oregon to bolster it's claim that a global recession is just around the corner! Hello what do you think the 8 years of Obama was? I used to love reading the Times but it's become non-stop narrative, storytelling click-bait, Trump hate, tinfoil hat conspiracy paper.
This trade war has been coming for a long time, Trump is just the only President with the guts to actually take on China. And if anyone actually believes that a 5% tariff with Mexico is going to start a global economic crisis it's evidence of their suffering from Trump Derangement Syndrome.
1
@Guy Montag it is 5% per month and will top out at 25%.
1
The next time we put a "businessman in the White House," let's try to find ourselves a good, honest, thoughtful one.
8
Looks like America gets to be the next casino for Trump to bankrupt.
7
Trump will lift these tariffs if and only if his poll numbers drop.
2
Builder . I have been notified that as of this Saturday the kitchen cabinets for my stick built homes will increase by 15% or $750.00 per home.
with regards to my manufactured home, the base price will increase by 2%, for an average of $1,200.00.
I this a genius at work?
7
I guess the stock market provides the quickest reaction to Trump's latest scheme, but count me among those who still believe that the bailouts after 07-08 focused too much on asset values.
I do not support linking tariffs on MX imports to immigration. Trump has never done anything on immigration that has not made me sick to my stomach. Honest.
But I question the approach of evaluating the tariffs based on short- and medium-term impacts to the US economy. (I know, Tariff Man said that trade wars are easy to win.) US auto production went down after NAFTA. I believe that US workers would have lost jobs due to technological developments, not the least of which are liberating us from cars and trucks. But NAFTA accelerated this process of losing jobs.
I'm ok with the US regaining jobs to manufacture motor vehicles, aircraft, ships, bikes, building materials, clothing, furniture, appliances, finished cellphones and computers, and so on. Actually, our national security DOES depend on regaining this industrial capacity, but this will be a slow, expensive process.
Having Trump as president is like having as president a crazy old hound dog with the ability to speak, sort of. Sure, he howls at the moon and picks fights with possum in trees and crows in flight. He overeats and is moody. Two things, tho.
When he's gone, at times, you tend to miss him, despite yourself, and you never get another.
I’d miss Trump about as much as I’d miss shingles, and in pretty much the same areas.
As for your other claims, no, those jobs are not coming back to this country. For the simple reason that we had them in the first place because countries like China didn’t have any industry to speak of, and countries like Japan and Germany were pretty much bombed flat.
We’re going to end up isolated and poorer, while China and Russia ascend, if we keep this up. And you better hope we don’t go back to a world just like it was after 1945.
8
The Republican Party's mantra of free trade is taking a beating from their supreme leader.
While their preferred version of capitalism, the unfettered variety, is being fettered with tariffs, which are essentially taxes on Americans, the Repubs in Congress are silent as lambs.
Not exactly profiles in courage.
13
I’m no economist, but I can report that my IRA’s and similar investments have taken a pounding in the last month. I’m also pretty sure this is the result of tariffs and a lack of coherent planning by this administration.
14
Economically speaking, Trump's always been high and dry. Whatever the outcome of his tariffs, no matter whose lives it upends, he'll be fine.
8
Give the rich a trillion dollar tax handout. Then increase the cost of consumer staples for everyone else, eroding their purchasing power.
Crush family farmers so that they will have to sell out to big Ag. Dismantle any sort of environmental, consumer, or legal oversight so that you can act with impunity now. Draft legislation that prohibits rollbacks of YOUR legislation so you can act with impunity in the future.
Winning indeed.
34
Is there actually a country left which Trump did not attack?
15
@Dirk D Yes, Russia.
7
@Dirk D
North Korea
Saudi Arabia
Russia
8
Russia
6
Placing a toy like this in the hands of an individual with the emotional maturity of a 3 year old is a clear & present danger to the world economy. The Congress made a huge mistake in delegating this power to the presidency. When Congress gives the green light, the power of the executive is at its maximum (see Youngstown Sheet & Tube v Sawyer, 1952, the Supreme Court ruling on Truman's seizure of the steel industry during the Korean War which defined the limits of executive power in a way the Constitution did not).
11
Please investigate Trump's manipulation of the markets. This shyster has promised tariffs and then walked them back only a few days or weeks later after taking heat from the professionals. How many of his 1% cronies has he alerted beforehand to buy and sell with this precious knowledge? NY Times reporters.. Please use all your investigative powers to see if there is merit to this.
53
Trump knows all about international supply chains and tariff economics from his vast experience importing and exporting golf clubs. Wharton ought to rescind his degree for cause.
9
At the rate Trump is going the wall he is building will be to keep Americans in the country who are trying to escape the fact he wrecked our country like he wrecked his corporation.
32
If anyone believes that a bankruptcy hack and third-rate mob boss with the emotional development of a 4 year-old is even capable of steady stewardship of the US economy-- I've got a casino to sell you for cheap. Real cheap.
37
Trump has a long, sordid history of using and losing other people’s money. Now, he gets to play with the biggest pot of all-the US Treasury and economy. A supplicant Congress seems willing to allow him to do so, unchecked. His arbitrary and whimsical imposition of tariffs will fail. China will retaliate, new global alliances will form without the US, and we, the taxpayers, will be left holding the bag while Trump and his mob ride off in Trumpian splendor, while those of us who have saved for decades lose our retirement in one colossal collapse of the US economy. I wouldn’t be surprised if his group of insiders are short the S&P 500, benefitting from the eventual collapse of our economy
23
@Peter
After the 2008 financial crisis, I made it a point to learn what I needed to do to protect my family's financial well-being when the next financial system meltdown occurred. The stock market volatility at the end of last year was a good run through of those plans as well as the last few weeks. If you are worried about losing your decades of savings, regardless of who is in the White House, take the steps now to secure your own future.
Best of luck to you.
1
I’m sure the economists who have been wrong about everything for the past two decades will make a lot of money writing books and articles about how horrible these tariffs will be for the economy.
3
What do you expect when you put a sham businessman in charge of a country's economy? Along with the vulgarity, racism, sexism, and corruption he has brought to the office he is hurtling us on an economic crash course. Perhaps his ardent supporters are okay with a precipitous fall. A depression kind of has a way of evening the playing field. Everyone becomes poor. Obama and Clinton's goal was to raise people up. This guy, whether intentional or not, seems to be headed towards destruction. Hope we hang in there until 2020.
7
I've got a Harriet Tubman Twenty that says someone he knows is making money by playing the market against these losses. Collusion? Hoax? Conspiracy Theory?
You have to admit that the shoe fits.
13
Or maybe he's just trying to bail out his hapless son-in-law and half-wit sons, who I'm guessing are way short the S&P 500.
2
American consumers fit the bill...so trump can deflect from Mueller and impeachment. He is something else, isn’t he?
3
Trump Recession 2020. Another failure brought to us by, Republicans!
18
If he tanks our economy, he tanks his own re-election.
6
As people have mentioned this is timed so the annual summer drop off in illegal entries can be credited to Trump 5% tariff.
Another tax on the American Consumer that Trump pretends is a punishment to Mexico.
7
It is tempting to think that Trump is deliberately trying to destroy the US economy and the global economy. Might someone be encouraging him to do so?
22
@micelle
Thank you for stating a hard-to-believe-but-likely-true scenario--that someone else is encouraging Trump "to destroy the US economy and the global economy."
My vote for the identity of that "someone else" goes to Vladimir Putin. After all, the Mueller report found lots of evidence that Russia interfered in the 2016 election in order to help Trump become our president. Putin himself preferred Trump over Clinton. In addition, DJT is probably being blackmailed by the Russian president.
When you look at almost everything Trump has done and said as president (and even during his campaign), it is easy to believe he takes his orders directly from Putin.
I have thought a great deal lately about my kinfolk who supported Trump--and who continue to support him--and it came as a shock to me to realize that I will probably never forgive them for their poor judgment.
Why a shock? Because I've always been a very forgiving person. But the election of Donald Trump as president has set into motion so many terrible events and threatens to ruin so many lives as well as the foundations of our American government, today and in the future, that I now comprehend some actions cannot be forgiven.
6
The term used in economic game theory for Trump's behavior is "credible threat to be irrational" (for the moment I am going to pretend that we can have confidence that Trump even has a strategy).
It can be a winning strategy, but only if only one player adopts it. If two or more players do (AMLO in Mexico, Xi in China, whomever) it'll be a disaster (hence the other way it is often described in game theory, a "game of chicken"). Trump will probably benefit in the short run from being the most irrational player. But in the long run (most especially past his term -- which he apparently cares little about; this man is uncommonly focused only on what directly affects him personally) he is increasing the odds of underperformance or even catastrophe int he global economy.
9
Finally something I'd support impeachment for! But seriously, can't Congress simply take away his unilateral authority to impose tariffs for whatever and whenever he wants to? Seems like a no brainer, yet I don't hear anyone in Congress talking about doing that. Seems like there'd be bipartisan support for that. Or are the democrats having too much fun watching Trump harm himself to get in the way of it? Either way, he'll be the first president with a strong economy that's limited to one term.
8
@bill Yes Congress definitely can. In fact the Constitution says that this is ultimately the Congress' responsibility, not his; they only subcontracted this authority with the understanding it would be used in cases of national emergency (where speed might be of the essence). The barrier taking it away is not legal, it's totally political. You would have to get 2/3 of the House & Senate to back the law change (I'm presuming Trump would veto if it's less), not to mention get one individual, Mitch McConnell, to agree to even let it come up for a vote at all.
7
I don't understand economics well enough to intelligently speak to what the long term consequences of Trump's tariffs will be. However, I can guarantee as sure as the sun will rise tomorrow that if the economy goes south as a result, this administration and their devoted followers (in Congress and among the electorate) will NOT take responsibility. Likely candidates for blame? Democrats in general; socialism; entitlement programs; Nancy Pelosi; Obama; and probably Hillary Clinton (just for good measure).
41
None but the very well-to-do have "rebounded" from the Great Recession. The "job numbers" look good, but often represent a person working 2-3 "gig" jobs with no benefits, let alone security. Wages have been flat for decades. So - the average shopper, beseiged from all sides with costs only going up everywhere - now will pay even more with tariffs. What is the breaking point?
16
President Man-Child’s assault on the markets along with increasing taxes (that’s what tariffs are) on American companies and the American consumer continues.
8
The conventional wisdom treats President Trump as a petulant child who doesn't understand the real economic impact his tariffs will have on the majority of Americans, but what if he really does understand what he is doing? This could be an outrageous act, similar to his picking a fight with the Pope to avert a negative news cycle (Mueller, financial disclosures, etc). Or it could be something much more nefarious, in which he is manipulating the financial markets to profit the Trump Org and his Mar A Lago cronies. Perhaps their tax cuts weren't enough graft...
6
US Consumers are now the hostages. So the deal is “Mexico cave or we hose the US Consumer” (and a bunch of other partners in the mix as well). The Tariffs strategy is getting far too old. Rather than actually working a deal by the “Art of the Deal” we use hostages instead. It’s easier because all he has to do is unleash his pen. He like that method. Why deal with people when the pen speaks louder?
2
Of course stocks fell, that was the intention all along.
Him, his family and his cronies are making a killing manipulating the stock market through his insane declarations and policies.
Of course he doesn’t get how any of this works, but the little voices that whisper in his ear do, and they know to buy or sell.
11
Hello Stagflation!
4
@Global Strategist Trumpflation, it's going to be bee-u-tee-ful.
Your neighbor's house is on fire; they flee to you for succor.
You, being Trump, set your own house on fire to deter them, then stand in the front yard with a shotgun watching both houses crumble.
20
This is all about distraction. Yet again Trump goes to the same playbook. When the conversation is exposing your vulnerabilities, change the subject. He did it with the Access Hollywood tape and here he's sucking the oxygen to dilute the effect of Robert Mueller's news conference. Folks who are following closely won't be gamed but his Fox News addicted base will follow right along.
7
He, the former owner of a bankrupt Casino, is doubling down. What could possibly go wrong, with an extremely stable genius in charge ???
You OWN him, GOP. Prepare to reap your just rewards.
14
Anybody really still think this guy is a savvy businessman? He’s proven he’s clueless. I guess sheeple who can’t think for themselves somehow figure his tariffs won’t cripple our economy.
Can’t wait to hear the howling about soaring prices and a tanked economy.
But hey, we sure showed how tuff and smart we are when it comes to immigration!
Clueless. Totally clueless.
9
"Mr. Trump has enacted or threatened what amounts to a nearly $200 billion annual tax increase on American businesses and consumers, which would be enough to cancel out the average annual value of the tax cut package the president signed in late 2017."
Except that the the benefit of tax cut went overwhelmingly to very wealthy people, like Trump himself and his family, while the cost of these tariffs will be borne largely by Walmart shopper types. Another huge transfer of wealth to those who already have it. Thanks, Republicans!
16
@Jomo
And don't forget the billions of taxpayer money to protect the farmers, and others of "his" voters , from the full effects of his tariffs.
2
Tariffs are a tax on US companies and consumers. They hurt our trading partners, but not so much as they hurt us. We pay them, and skew the market away from efficiency. They are lose-lose.
Any first year Econ student paying attention with one ear could tell you that both parties to a free trade win by doing it--each gives up what they valued less in exchange for what they valued more. But in Trump's twisted mind, there must always be a winner and a loser in every transaction. If a trading partner benefits, then he concludes that the US is losing. If he can inflict a loss on a partner, he concludes that this is a win.
We are seeing what happens when a psychologically damaged man whose business model has been to lie, bluster, and leave others holding the bag for his failures takes control of the world's largest economy.
81
@The Storm ~
trump may be a teetotaler, but he is drunk with power, which he wields wildly and erratically.
5
When will you all understand he is still in tv drama mode. He’s a drama queen.
29
Franklin Graham wants us to pray for Trump's well-being.
How about we all pray for the US investor instead? Until Trump is impeached for his crimes our financial security is threatened. We need to get back to stability by using clear, rational planning.
16
So he's had a failed university, a failed casino, failed golf courses and now he's going to fail the US economy, how lucky are we to have such an idiot for president.
97
@BTO ~
Not only a failed "university" but a failed fraudulent "university".
8
@BTO you forgot the failed airline.
7
If the prices get to be too much for Americans, Trump will just throw money at that industry. He did that for farmers in the Midwest with soybeans. The problem is all of us tax payers will be paying for this.
14
That really isn’t the the deal. He can’t throw enough money to make Farmers whole again.The is foreign policy not trade policy. We pay for this fiasco. Real people get hurt on both sides of the border and for no reason of their own! This is “The Pen” diplomacy.
2
Trump occasionally lets slip his thinking and it’s not by any means profound.
He sees the tariffs as income, extra income, not as a drag on consumer ability to offer demand that can support investment in future growth. He sees the incentives of high costs driving buyers to find other sellers, but he ignores the obstacles to finding other sellers in this country.
His huge tax cuts have not resulted in corresponding investments in domestic manufacturing nor huge increases in demand for goods and services. Like all tax cuts, when there are no surplus revenues, the cuts demand deficit spending by borrowing.
The tariffs will dampen the effect of the tax cuts upon deficit spending, he seems to think. They will force other countries to cave into his demands, he thinks, too. It seems like he sees nothing but good results. But his thinking is not well considered thinking. It’s choose something to gratify an immediate need so that one can get on with the next thing, shallow and quick, thinking.
13
"Mexico is gonna pay for it."
I get that Trump's fans like having the wood pulled over their eyes, but good grief, you'd think they'd have a clue by now.
51
They admire him because he projected virility. But these days that means ignoring the mean-girl behavior.
3
Mexico has paid dearly for sharing North America with the United States. It took until the end of the twentieth century for Mexico to not perceive the U.S. as a big bully out to take everything that it could take from them. They are a proud people and they do not forget.
2
The Republican Party has long promoted itself as the party of economic responsibility. How does it explain its paralysis when Trump repeatedly threatens our well-being by showboating with economic forces that he either does not understand or, worse, that he cares about less than keeping the chaos rolling from day to day?
31
The DOJ, SEC, and several Congressional committees need to open an investigation into these Trump Temper Tantrum Tariff Decrees by Twitter.
Trump must be shorting the markets. He, and those in the know, might be making huge gains on short positions. Trump is, after all, much more a businessman than a politician. And he has made it very clear that he is in government to make money. Why should he do otherwise when it comes to the stock market?
We must demand oversight from our government. Let me reiterate, WE MUST DEMAND OVERSIGHT FROM OUR GOVERNMENT!
101
@Really Certainly this has crossed my mind as well. Another only slightly less evil possibility is that it would be pretty easy for president Trump to depress the markets, economy, etc. with these crazy announcements...only to rescind them all at the right time in the 1st half of 2020 to get that market surging up just in time for November.
6
Trump is running our country the way he ran his businesses into bankruptcy six times. Has anybody told him that there's no one to bail him out from this one?
35
Trump is not a mortal person. He commands from above because he is better and smarter than all of us - NOT! Why negotiate when you can command with the stroke of the pen. It’s cheap and easy. You can’t fault him because he only knows one stupid pet trick.
1
This perspective is entirely financial. But trade wars are more than merely financial, they impact world relations and often generate ill will in the place of good will. Trade wars are a major topic in Rene' Girard's final book "Battling to the End." Looking at these trade wars through merely a financial lens is myopic. Trump is breaking world relationships and sowing seeds for division. It is his mode for feeding his attention needs. When you start paying more for most things, ask yourself how you feel about the producers? Of course, the culprit charging you the tariffs (Trump) will be out of sight. Girard contends that trade wars are the precursor to actual war.
35
So how many of Trump's friends and business partners do you think are making money because he told them ahead of time of what he was going to do? Lots of short selling among those in the know I bet.
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@Tom
Definitely, I’m sure plenty of “advice” he is given is intended to cause him to react in his all too predictable way.
5