Leroy wrote on Dec 5
th, 2024 at 2:02pm:
Trump is a negotiator. America have nothing to negotiate with and have always been duped into bad deals because they have no leverage.
Trumps tariffs are there to give him some leverage when he negotiates.
So he's lying about the Tariffs?
Quote:China's strong economy is because they leverage everything, you should know that from watching them dominate Australia.
The fat is gone from the american economy and smarter trading needs to be done if they want to stay relevant.
Canada and Mexico have feasted on weak deals from America and Trump is going to turn that around.
Neo-Liberalism, your problem is with Neo-Liberalism.
The shift to neoliberalism under Reagan, with its emphasis on free markets, deregulation, privatisation, and reduced government intervention, fundamentally reshaped the U.S. economy. Manufacturing declined as industries went global, jobs moved offshore, and economic power shifted to banking and services.
Tariffs won’t reverse this trajectory.
If tariffs are being used as bargaining chips, what is the goal? Trump claims it’s to bring back manufacturing, but where’s the strategy? Tariffs are the only tool he has articulated. How does he intend to challenge neoliberalism, the ideological foundation of the Republican Party itself?
In reality, the tariffs will likely deepen the neoliberal playbook. Deregulation will be repackaged as the "solution" to any economic fallout, with both "red tape" (labour protections) and "green tape" (environmental safeguards) on the chopping block. Rather than restoring industry, this approach entrenches the very system that hollowed out manufacturing in the first place.
Meanwhile, China will call Trump’s bluff because, frankly, he lacks alternatives. He’s betting everything, going nuclear, before he even has a viable hand to play. His approach is reckless brinkmanship, and sadly, China’s leadership appears more strategic and disciplined.
Making matters worse, Trump has systematically purged advisors who might challenge him or offer sound counsel, replacing them with sycophants. This leaves him isolated, incapable of crafting a coherent response to the high-stakes game he’s started.
I don’t think you fully grasp how precarious this situation is. Trump’s rhetoric is hollow, his strategy ill-conceived, and the stakes are enormous. If this is truly a bluff, as you suggest, then it’s a dangerous one. He’s unlikely to see it through, folding seems inevitable, unless, of course, he’s willing to gamble the financial stability of the entire economy just to “prove” something to China.
And of course, it's the people, including his base, that will have to bail him out, paying more for practically everything, while he sits back lying, saying "China" has paid billions in tariffs.
I really hope I'm wrong, because we'll suffer in that trade too, not just his supporters and the rest of the people in the US.
Excellent post.
China gets blamed for the negative outcomes of globalisation, when "free-trade" globalization itself - meaning no tariffs allowed - has systemic problems not caused by any one nation. There are winners and losers in globalisation, anf now Trump want to decouple from global trade, especially China who is condemned for "subsidizing" its industries.
Biden woke up: if you can't beat them, join them - and began subsidizing US industry (CHIP, IRA etc.) to the tune of several $trillions of public money...