Red-Indian
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I've been trying to gather all of the same arguments for tariffs to try and understand things better. Luckily Noah Smith's done the job for me combing through Twitter.Had said this a few days back when this discussion started, that it was more about China than anyone. China is viewed as a national threat, a long term security threat and a global threat. Much more about tariffs. Here's a BBC link that seems to confirm this :
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Why Trump is hitting China on trade - and what might happen next
There is much more to this than straightforward retaliation, writes John Sudworth, and it traces back to his first term.www.bbc.com
Also locally the US market needs a mild reset. Inflation was out of hand, commercial interest rates are ridiculous 10-12% , const costs are out of whack and honestly the low unemployment rate atleast in Texas needs a reality check. A mild recession kind of situation may not be bad honestly so that the market can return to baseline level.
- “Tariffs will get rid of trade deficits, which are bad for America”
- “Tariffs are a negotiating tactic”
- “Tariffs will reduce inflation”
- “Tariffs will reduce interest rates, making it easier to finance the national debt”
- “Tariffs are actually tax cuts”
- “Tariffs will bring back American manufacturing”
- “Tariffs will put the U.S. economy on a more sustainable footing”
- “Tariffs will weaken China relative to the United States”
- “Tariffs will make America more manly”
- “Tariffs will force Americans to live more modest, austere lives
A lot of them are nonsense but I think you've picked 2-3 semi-sane ones out of those and there is definitely a small possibility that those goals will be achieved. For example, if you think that a mild recession will hit China hard and cool down the US economy, you may be right.
It's just that there are better and more precise economic tools for all these objectives. There isn't that much need for the US to hurt itself in order to hurt China. Better tools would be globally co-ordinated import bans on targeted products, manufacturing alliances with friendly countries like Mexico and India etc.
Instead Trump chose to fight the whole world at the same time - allies and enemies alike including countries like India that have been begging the Trump administration for months to tell them what it would take for a trade deal. Only to roll the ridiculously calculated tariffs back within a couple of days. It's impossible to find logic in all this.