[Decky]

The US and UK electoral systems cause a delay of this divergence showing up as a political reaction and they also enable populists or radicals to "hijack" a political party, Trump and Corbyn are examples of that phenomenon.

What's radical about Corbyn? Blair was the radical one, Corbyn is taking Labour back to its traditional place in British politics, a centre left pro worker party.

[Stormsmith]

So Canada, with a small but actual trade deficit is having to deal with tariffs while China with its massive trade surplus gets off Scott free? Where's the sense in that???

[Atlantis]

So Canada, with a small but actual trade deficit is having to deal with tariffs while China with its massive trade surplus gets off Scott free? Where's the sense in that???

That's normal. Everybody is always ganging up on the small guys. They are easy prey.

Canada and Mexico ought to join the EU. @Albert is going to love it.

[Stormsmith]

We could just turn off the electricity we send south....see how that plays

[Rancid]

What is the rationale behind any of these tarrifs? Other than "Everything is unfair!!!"

[Albert]

Perhaps Trump wants USA to become exporter of metals rather then importer. Who know what the end of all this look like.

[annatar1914]

What is the rationale behind any of these tarrifs? Other than "Everything is unfair!!!"

War. War is the rationale. But they can't have another world war without a restored American technological and industrial base, forced to be dependent on the foreign countries that they are likely to be later going to war against. The idea is that Tariffs will impel American corporations, especially ones tied to the military industrial complex, to build up industry in America, and weaken countries targeted for later military defeat.

[Rancid]

War. War is the rationale. But they can't have another world war without a restored American technological and industrial base, forced to be dependent on the foreign countries that they are likely to be later going to war against. The idea is that Tariffs will impel American corporations, especially ones tied to the military industrial complex, to build up industry in America, and weaken countries targeted for later military defeat.

Is this your speculation, or do you have actual data to supper this claim?

[annatar1914]

Is this your speculation, or do you have actual data to supper this claim?

Logic, and History.

The people behind these moves on tariffs and trade imbalances are rational Capitalists, faced with the actual crisis of Capitalism, which can only be ''fixed'' by war. I know of some of these people, and they aren't afraid of what the results will be. Tariffs historically always mean war, eventually.

[annatar1914]

Smoot Hawley Tariff act of 1930;

https://en.wikipedia.org/wiki/Smoot%E2% ... Tariff_Act

Second Sino-Japanese War (World War Two);

https://en.wikipedia.org/wiki/Second_Sino-Japanese_War

1931 (some say 1937)

[Albert]

Trump is not an idiot.

USA appeases its allies with favourable trade relations; this is in one way how it keeps them under US dominion. Yes in the end US runs a trade deficit but it get to project influence around the world. Perhaps Trump is actually trying to dismantle the empire this way and in this way it will have to be the "allies" who will have to break with US not him. Thus this way he will come out looking like the better man, while EU and the rest will look like bad guys who are rebelling for no good reason.

Unless he is betting that they will not do that so he can have them under US dominion and reaping the economic benefits as well. So his going full Roman Empire on them, who knows will see.

Edit: Or perhaps I'm overestimating him, he does after all come from business background, so he might be just looking at his from spreadsheet cost benefit way. If that is the case he might not be taking into account that this will reduce American influence in Europe and also with its allies around the world. Unless he is willing to back it up with other means, like militarily, but then that is kind of going a little to far.

Will see by the fruits of his actions.

Btw, Bush I believe attempted something similar in 2002 or something, I've read. I do not know much what happened then.

[annatar1914]

Trump is not an idiot....



...Unless he is betting that they will not do that so he can have them under US dominion and reaping the economic benefits as well. So his going full Roman Empire on them, who knows will see.

No, President Trump is by no means an idiot. And I believe that you are correct with your above comment regarding ''full Roman Empire'', too. Oswald Spengler is another influence on my thinking, and with him I believe that our ''Faustian'' civilization is due for the next phase; Imperium, Caesarism. I do not judge, I just note. Certainly Vladimir Lenin also saw Imperialism as the last phase of Capitalism, and there is not much difference in kind between men like President Donald Trump, Cecil Rhodes, and King Leopold II of the Belgians, and the men of Rome's late Republic... Caesar, Pompey, Crassus, Antony, and Octavian...

[Hong Wu]

http://www.philly.com/philly/blogs/inq- ... 80601.html

US Investors Discount Tariffs Threat as US Economy Surges Under Trump

[Igor Antunov]

If everybody sets tariffs to 100%, then nothing changes. We back where we started hehe

And the Us economy is going to experience record gdp growth under trump because he's doing everything in his power to cater to the most critical elements of the economy, i.e big business while killing off welfare for the population.

A small percentage of whales can drive big business, the masses may as well starve, they're numerous enough to contribute to economic expansion by virtue of spending their meager earnings on some shitty goods and services in vast numbers.

[Atlantis]

War. War is the rationale.

In the last 100 years, the US has never embarked on a major war without allies. Even if they didn't contribute much in terms of military hardware, the US always wants to have a coalition of as many countries as possible to claim that "see? the international community is with us, there are dozens of countries that support our just war which we are fighting for world peace."

The US didn't bomb Assad to kingdom come in 2013 because the British lower house didn't give Cameron the mandate to bomb Syria. Without the Brits, the Yanks won't do it.

But they can't have another world war without a restored American technological and industrial base, forced to be dependent on the foreign countries that they are likely to be later going to war against.

With it's gigantic military budget, the US already is the leader in military technology. There are other fields such as mechanical engineering and robotics where they can't compete with the Germans or electronics where they can't compete with the Asians; however, history proves that no country, no matter how big, is capable of leading in all fields of technology. The strength of the West is exactly that different economies with different technological excellence trade freely. That's what defeated the Soviet Union in the end.

The idea is that Tariffs will impel American corporations, especially ones tied to the military industrial complex, to build up industry in America, and weaken countries targeted for later military defeat.

US tariffs on imports will weaken domestic producers not strengthen them. There is no example in history of a developed economy that would suggest otherwise. US manufacturers depending on the government to protect them will sell without having to innovate. They will increase their prices and the shareholder will cash in on the profits, while the foreign competitors will innovate to produce better quality at lower costs. Even if the government were to protect US companies indefinitely, they would only be able to do so on the domestic market. On the international market they would lose against foreign competition which has become competitive by innovation and cost cutting. The longer the protectionist regime continues the less competitive US industry will become. Franco Spain is an example of that.

No, let's not make any mistake about it, Donald Trump is stupid as far as the global economy and diplomacy are concerned. What he does know are Mafia-style business practices in real estate and gambling, where macho behavior is used to intimidate.

[Rugoz]

War. War is the rationale.

Yep, that's why he slaps tariffs on Canada, Mexico and Europe. Because a war with China isn't enough.

Trump is not an idiot.

Trump is a dumb fuck acting on instinct but he has economic advisors who know better. It's possibly just a stunt to please his dimwitted followers and he won't escalate any further.

USA appeases its allies with favourable trade relations;

I posted evidence to the contrary, but feel free to ignore it.

If everybody sets tariffs to 100%, then nothing changes. We back where we started hehe

Sure, Trump could shut down trade altogether, which would result in a dramatic loss of GDP. That would be the most idiotic way anyone has ever dealt with a trade deficit ever.

[One Degree]

US consumption is 29% of the world market. We easily win any trade war because we are the purchasers.

https://www.internationalbusinessguide. ... look-2015/

[Potemkin]

US consumption is 29% of the world market. We easily win any trade war because we are the purchasers.

https://www.internationalbusinessguide. ... look-2015/

That's why you have a trade deficit in the first place, One Degree.

[One Degree]

That's why you have a trade deficit in the first place, One Degree.

That is very true, but in a trade war that purchasing will be forced to be American made products. This will benefit the US economy and our trade balance.

[layman]

Indeed and “shithole” countries rarely have deficits. I guess trump hasn’t worked out why yet.

Either that or this is just another stunt that he will quietly reign in.