quote:

Originally posted by Mike Mitchell:
From the Financial Times:

https://www.ft.com/content/214...35-84f9-ef2d0e1aeb14


America’s astonishing act of self-harm

Trump’s tariffs will upend the global economic order and tarnish US prosperity
THE EDITORIAL BOARD

If it endures, Donald Trump’s decision on April 2 2025 to enact sweeping “reciprocal” tariffs on US trade partners will go down as one of the greatest acts of self-harm in American economic history. They will wreak untold damage on households, businesses and financial markets across the world, upending a global economic order that America benefited from and helped to create.

The president spoke brazenly from the Rose Garden at the White House on Wednesday, delivering a protectionist agenda well beyond most analysts’ worst-case scenarios. Within a week, the US will be enclosed by a minimum 10 per cent tariff wall on all imports, reinforced by hefty individualised duties on nations with sizeable US trade deficits. These build on levies already announced by the administration, including on China, Mexico, Canada and the auto industry. The combined effect will lift America’s effective tariff rate to its highest in over a century.

Trump’s justification hinges on a naive belief that treats trade imbalances as if they were the profit and loss account of a business, and not the culmination of highly specialised supply chains. He also considers factory work to be the fount of economic development, ignoring how decades of free trade has enabled America to rise up the industrial value chain and become a global leader in services and innovation.

His “reciprocal” levies amount to a back-of-the-envelope calculation. They take trade partners’ US trade deficit in goods as a share of imports from that country, and then divide it by two. This is not a calibrated attempt to equalise tariff and non-tariff barriers facing US exporters, perceived or otherwise. It is, however, a reckless repudiation of all trade agreements the US has signed, as well as a deeply flawed plan to attract foreign manufacturing investment.

For the US economy, the most immediate effects of Trump’s actions will be to raise inflation and slow economic activity. Capital Economics reckons Trump’s tariff blitz could push US annual inflation above 4 per cent by the end of the year, heaping further pain on households that have suffered from a 20 per cent rise in prices since the pandemic. Interest rates may now stay higher for longer.

American businesses should be shell-shocked. They face the costly and complex task of finding domestic suppliers. The prospect of sectoral tariffs and retaliatory measures, alongside the administration’s slapdash approach to policymaking, will hinder investment plans and any chance of sparking a manufacturing renaissance. Financial markets are volatile too. The S&P 500 and the US dollar plunged in early trading on Thursday. Confidence in US economic exceptionalism continues to evaporate.

As for those most reliant on selling goods into the US, the economic downsides of Trump’s tariffs will be substantial. Decades of progress in poverty reduction across south-east Asia, in particular, is now at risk. Sluggish growth in major economies, including the EU, Japan and China, will be compounded.

The temptation to retaliate will be strong. But this moment calls for cooler heads. Trump has promised to fight fire with fire. Policymakers must carefully weigh their next moves. Instead, America’s now shut-out trade partners ought to focus on expediting free trade initiatives among themselves. After all, the US accounts for just 13 per cent of global goods imports, and with the exception of those in the White House, the economic imperative of comparative advantage continues to be widely understood.

This was no “liberation day” for America. If Trump gets his way, the US economy will be isolated from the very system that has powered its century-long rise. The whole world will suffer, but it need not follow America’s path.

quote:

Originally posted by MJines:
. . . maybe they’re busy trying to figure out where their 401ks went.

quote:

Originally posted by JTEX:
But its okay for other countries to have tariffs on us????


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quote:

Originally posted by JTEX:
But its okay for other countries to have tariffs on us????


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quote:

Originally posted by JTEX:
But its okay for other countries to have tariffs on us????


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quote:

Originally posted by Saeed:
What I find amazing is how is he getting away with it!?

This is no different to a dictatorship!

quote:

Originally posted by JTEX:
But its okay for other countries to have tariffs on us????


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quote:

Originally posted by nute:

quote:

Originally posted by JTEX:
But its okay for other countries to have tariffs on us????


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You need to do some research into what is charged by differing countries. Trump says the EU charges the US 39% on imports, which is rubbish. But you just swallow the number he's pulled out of the air.

The EU charges differing rates on all sorts of things depending on the type of import. The world bank estimates it as an average of 4%.

The EU charges 10% on US car imports, whereas the US charges 2.5%. However the US charges 25% on EU made pickup trucks, which make up a big chunk of US imports.

Ive not seen any justification anywhere on how Trump came up with the numbers he has published. His past habit of picking numbers out of the air which suit his audience / arguments would seem to be continuing. If you can find anything to support 39% feel free to post it up.

quote:

Originally posted by LHeym500:

quote:

Originally posted by nute:

quote:

Originally posted by JTEX:
But its okay for other countries to have tariffs on us????


.

You need to do some research into what is charged by differing countries. Trump says the EU charges the US 39% on imports, which is rubbish. But you just swallow the number he's pulled out of the air.

The EU charges differing rates on all sorts of things depending on the type of import. The world bank estimates it as an average of 4%.

The EU charges 10% on US car imports, whereas the US charges 2.5%. However the US charges 25% on EU made pickup trucks, which make up a big chunk of US imports.

Ive not seen any justification anywhere on how Trump came up with the numbers he has published. His past habit of picking numbers out of the air which suit his audience / arguments would seem to be continuing. If you can find anything to support 39% feel free to post it up.

Do not ask our Texas contingent to read anything.

Reading is evil democrat activity taught in temples of Satan (non-religious schools).

All one has to be able to read are bumper stickers and listen to the Trump priesthood.

Trump is getting away w it be a we have a cowardly and complicit Congress that will not impeach and convict. That is bc most of his elected party no better, but they will sell it for a moment if political power. Party power over oath and the Constitution.

quote:

Originally posted by MtElkHunter:
Has anyone ever thought that the tariffs are just a ploy. Think about it. If you are Trump and have the ability to impose tariffs knowing full well that the stock market will drop like a rock and also that if you remove said tariffs the market will jump.... Think about it, if one person has the ability to drop the market, then while the market is down buy a bunch of stock then remove the tariffs. You could make an enormous amount of money! Trump even said that. He made the comment that it is a perfect time to make yourself rich. I would not be surprised at all if this was all just a scheme to make Trump and his lackies a lot of money at the cost of the people.

quote:

Originally posted by LHeym500:
Trump’s intent is not relevant in a legal analysis of his presidential immunity.

quote:

Originally posted by Magine Enigam:

quote:

Originally posted by LHeym500:
Trump’s intent is not relevant in a legal analysis of his presidential immunity.

Do you mean intent doesn't have to be shown, just consequence?

Does such presidential immunity extend to the impeachment process?

And other related questions:

Are Exec Orders re tariffs, such as what Trump did, really Exec authority in scope or exceeding it? Aren't tariffs in the realm of congress? So could it be deemed that Trump is not protected by immunity since what he did is outside Exec duties - official act?

I think the answer to my previous question, previous post, about the stink the press could raise is that in such case GOPers still wouldn't vote to impeach, although caught in a trap. They would try to worm their way out - SOP - witch hunt, whatever.

Then Dems could impeach after mid-terms, having a super majority.

But that's a long time from now. A lot could happen meantime.

quote:

Originally posted by Steve Bertram:

quote:

Originally posted by JTEX:
But its okay for other countries to have tariffs on us????


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Your problem is that you believe the bullshit that Trump says, it was minutes after he unveiled his chart on "reciprocal" tariffs that his numbers were debunked. There is nothing reprical at all about this policy, it hits every single country with a minimum 10% tariff, even those like Israel that have no tariffs on US products in place. Well almost every country, your motherland Russia was left off the tariff list.

This is shit policy, it has already cost Americans trillions and the markets are hemorrhaging again this morning, but you got up this morning, poured yourself another stiff glass of Orange Kool-Aid and told yourself that everything is just peachey

But not to worry, the OJ says Americans won't feel any pain, despite what your wallet might tell you. This shit cost me personally tens of thousands of dollars Jim, you just keep on deluding yourself.

https://www.yahoo.com/news/lea...won-t-231202743.html

quote:

Originally posted by Steve Bertram:

quote:

Originally posted by MJines:
. . . maybe they’re busy trying to figure out where their 401ks went.

one of my friends who is also a client lost over 80K yesterday in the stock market, another is on the hook for over 50K in tariffs. My own losses are significant as I have considerable inventory that has been purchased but is still awaiting approval for importation.

What a damn mess, and completely unneeded.