One of the main parts of the Trump agenda is his use of tariffs. It has upset the world economy, raised prices in this country, upset the stock market, and alienated friendly nations. Why is he so insistent on doing it?
He has given some reasons. He has said it is to bring manufacturing back to the United States. Most economists agree that is not going to happen. If it did, it would raise prices on those goods exorbitantly due to the high cost of U.S. wages for items much more inexpensively made abroad.
He has said it is to correct the trade balances between the U.S. and other countries. If so, then why has he levied tariffs on almost every country in the world - including those that import more from the U.S. than they export to it?
We can get a clue as to why he loves using tariffs by looking at the new 50% tariff he has put on Brazil. Brazil is one of the countries that import more than they export to the United States. And Trump has admitted that this tariff has only a political purpose. He is upset that Brazil is putting right-winger Jair Bolsonaro on trial for trying to conduct a coup against the man who beat him for the presidency. Bolsonaro was a Trump friend and Trump has put a tariff on Brazil to make them stop his trial.
In other words, the tariff is just a raw power move against another country.
In the past, American presidents have used "soft power" to be world leaders (like foreign aid - both economic and military). But Trump doesn't understand soft power, and has in fact, destroyed most of the agencies delivering that power (like USAID).
The only kind of power Trump recognizes and believes in is aggressive force. He believes power is achieved through force and fear, and tariffs are his primary weapon. His message is either do what I want or you will be punished with a large tariff.
Trump wants to be the leader of the entire world and tariffs are his weapon of choice to achieve that.
Sadly, it will not do what he wants. It will just inflate prices for Americans while alienating other nations. It is making the United States a pariah nation that cannot be trusted (even by our best friends).
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