TAGS: #donald trump
President Donald Trump’s attitude towards, use of, and focus on tariffs, appears to be, significantly different, than how, those who proceeded him, conceived them, as well as how, most, professional economists, believe! Although, he claims, they enrich our nation, and punish, those who, won’t buy – into, or agree to his negotiating points/ wishes, the reality is, the American consumer, inevitably pays for these, because, at some point, these costs are passed – on, in the form of higher prices, paid by the end – consumers! While, we have had many tariffs, over – the – years, his widespread use of them, appears to, akin to, weaponizing them! First, he made a bid political point, of imposing tariffs, as part of his trade war, against China. We are already witnessing certain impacts, but, we will probably find, these increased, significantly, especially, in technology – related industries, certain food items, and the impact on many farmers (because of retaliation from China). Now, he has articulated, he will impose these fees/ taxes, against all Mexican products (or anything made in, or imported from Mexico), in an ever – escalating way, and introducing them, in monthly intervals, over a 3 – 4 month period of time, as a way of punishing that nation (others might call it, scape – goating), as a symbol of his politicization, of the immigration issue, along the Southern border. Who might be next, or what might this unpredictable man, who reportedly, often, appears unwilling to listen to his chosen advisers, do next? Using tariffs, as political policy, brings, with it, lots of dangerous ramifications, including rising prices, hurting the stock market, affecting corporate earning, and, both making agriculture prices rise, significantly, and/ or, hurting farmer’s incomes. With that in mind, this article will briefly, consider, examine, review, and discuss, some concerns, worth evaluating.
1. China – reaction: Unlike, some deals, in corporate America, when the President deals with foreign nations, such as China, he should understand, his actions, will bring about reactions, and combined, undesirable ramifications! His government’s restrictions on the largest Chinese electronics/ digital company, will, harm, efforts to effectively imput 5- G service, in this country, as well as bring – about, China, developing their own, Chinese- owned, alternatives, in many digital applications/ uses!
2. Will Japan be next?: We have already, witnessed, certain demands, being made, on Japan, and, the odds of these, occurring without negative ramifications, is, limited! Stating, he will impose tariffs, on Japanese automobiles, imported into this nation, will significantly raise our prices, as well as hurt parts availability!
3. European Union: We have witnessed numerous statements, by this President, in opposition to the European Union. We’ve also seen lots of rhetoric, about agreements, such as NATO, etc, which seem, to have driven, a divide, with another of our allies!
4. Korea: Would anyone be surprised, if, similar actions, were taken, regarding, South Korea, in an attempt, to placate, his new relationship, with North Korea?
Wake up, America, because, we are witnessing, a dismantling of many American ideals, and abandoning our relationships, with our historic allies. This isn’t normal, and, if, it continues, will significantly change this nation, and our relationship/ standing, in the world, for a long – time!