Donald Trump just imposed a 25 percent tariff on virtually all goods produced by America’s two largest trading partners — Canada and Mexico. He simultaneously established a 20 percent across-the-board tariff on Chinese goods.

As a result, America’s average tariff level is now higher than at any time since the 1940s.

Meanwhile, China and Canada immediately retaliated against Trump’s duties, with the former imposing a 15 percent tariff on American agricultural products and the latter putting a 25 percent tariff on $30 billion of US goods. Mexico has vowed to mount retaliatory tariffs of its own.

This trade war could have far-reaching consequences. Trump’s tariffs have already triggered a stock market sell-off and cooling of manufacturing activity. And economists have estimated that the trade policy will cost the typical US household more than $1,200 a year, as the prices of myriad goods rise.

All this raises the question: Why has the US president chosen to upend trade relations on the North American continent? The stakes of this question are high, since it could determine how long Trump’s massive tariffs remain in effect. Unfortunately, the president himself does not seem to know the answer.

In recent weeks, Trump has provided five different — and contradictory — justifications for his tariffs on Mexico and Canada...

...more in the article.

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[–] 262 points 1 year ago (2 children)

Putin said: "go forth and break shit" and here we are.

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    [–] 154 points 1 year ago (4 children)

    Apparently It's supposed to get rid of the browns and the gays and the women and everyone else until it's just a bunch of old white men sitting around, counting money, and masturbating to AI porn? Kind of like a hateful gross version of Scrooge McDuck.

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  • [–] 41 points 1 year ago (2 children)

    It seems to be working, I signed my ticket out of here. I'm a brown and queer woman. Just need to survive until immigration goes through.

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    [–] 114 points 1 year ago (18 children)

    And economists have estimated that the trade policy will cost the typical US household more than $1,200 a year

    Remember this, when you hear about tax cuts for the wealthy.

    This comment is licensed under CC BY-NC-SA 4.0

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    [–] 94 points 1 year ago (1 child)
  • [–] 81 points 1 year ago (8 children)

    All this raises the question: Why has the US president chosen to upend trade relations on the North American continent?

    It's because the trade agreement trump's unhappy with was made by a raging moron.

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  • [–] 69 points 1 year ago (2 children)

    For everyone else following along, the USMCA that was put in place after Trump renegotiated NAFTA in his first term… was made by Trump. So he’s unhappy with his own legacy. Which seems on brand for him, tbh.

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  • [–] 15 points 1 year ago (1 child)

    Part of the agreement allows for a review next year and his complaints could have been addressed them, but apparently negotiated such a lousy deal he can't wait that long.

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    [–] 60 points 1 year ago (5 children)

    Just my opinion as a layman: the tariffs give his corporate backers all the excuse they need to jack up prices even higher.

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  • [–] 42 points 1 year ago (1 child)

    That, plus it seems very likely that he and friends are just manipulating the market to trade on the predictable moves he's causing. Ya know, the kinda stuff that earned Musk some mild hand slaps and theatrical pearl clutching (in addition to giant financial benefits) in recent years.

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    [–] 48 points 1 year ago (2 children)

    He is a Russian asset and has been since at least 2014

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  • [–] 17 points 1 year ago (1 child)

    He has to be. I can't think of any other reason why he'd be trying to hard to antagonize and disrespect long-time allies, while praising Russia. He then made that ridiculous statement that Ukraine started the war, when Russia was the one who invaded them, and also said that Zelensky should be 'nicer' to Putin. But Putin, who ordered the attack that caused who knows how many deaths, shouldn't be 'nicer'?

    There was also the first term, where Trump fired the FBI director over an investigation into Russia, and then told Russia that he fired 'that nut job'. What kind of message does that send to their own people? Not just that he fired the director, but that he bragged about it to the people he was investigating.

    I honestly think most of the GOP knows, but they're too embarrassed to admit it. Or maybe it's just pride, they think it's beneath them to be held accountable to anyone.

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    [–] 38 points 1 year ago (1 child)

    Cuz he is a puppet, a Russian asset and generally not an intelligent person nor a good businessman.

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    [–] 32 points 1 year ago

    He had the idea to raise tariffs, and he believes all his ideas are really good, so he followed his own good advice and raised tariffs, dead simple.

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  • [–] 31 points 1 year ago* (last edited 1 year ago)

    I know why he did it. Because that's what his best best friend from Kremlin said and his two last working brain cells are in vacation playing golf.

    He probably doesn't understand that if US stops all trading, will become just a bigger North Korea with nukes.

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  • [–] 28 points 1 year ago* (last edited 1 year ago) (9 children)

    I never liked that many seem to be of the idea that Trump is an absolute buffoon who doesn't know what he is doing. He and his goons are not headless chickens. They are not stupid, and know incredibly well what they are doing and why.

    You don't get to win an election twice if you're as much of an idiot as most make him out to be. If we keep underestimating our 'opposition', we will continue to be defeated.

    See this article for more: https://unherd.com/2025/02/why-trumps-tariffs-are-a-masterplan/

    TLDR:

    In this article, Yanis Varoufakis analyzes Donald Trump's economic strategy, arguing that it is more sophisticated than his critics assume. Trump's focus on tariffs is part of a broader plan to reshape the global economic order, which Varoufakis describes as an "anti-Nixon Shock." Trump believes the U.S. has been exploited due to the dollar's role as the global reserve currency, which he sees as a burden rather than a privilege. He aims to weaken the dollar to boost U.S. manufacturing and reduce trade deficits, while maintaining its reserve status to fund U.S. deficits and military power.

    Trump's plan involves using tariffs to pressure foreign central banks to lower interest rates, thereby depreciating their currencies relative to the dollar. This would offset the price increases caused by tariffs on U.S. consumers. The second phase of his strategy involves bilateral negotiations with key countries, leveraging tariffs and security threats to force them to appreciate their currencies and make concessions, such as buying more U.S. goods or relocating manufacturing to the U.S.

    Varoufakis acknowledges the risks, including potential domestic backlash from Wall Street and the possibility of foreign countries, particularly China, creating an alternative financial system. However, he argues that Trump's plan is coherent and should not be underestimated, even if it diverges sharply from traditional economic thinking.

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  • [–] 23 points 1 year ago

    That's definitely someone's opinion of what they are doing. I think he's fallen victim to looking really hard for a plausible reason for emotional behavior. Trump and his admin seem more hell bent on gaining leverage in order to increase greatness and power over others and eventually profit. They aren't looking to save or kill the dollar or reset the economy. In my opinion as an uneducated person they want to deregulate then tank the markets to create an environment where the wealthiest will buy up the discounted assets and profit when the economy swings back. Nothing more than a shortsighted opportunity to consolidate power and wealth, the same way he is trying to consolidate power into the executive branch.

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  • [–] 23 points 1 year ago (1 child)

    The thing is, I don't doubt there is an actual reason why these plans have some more intelligent purpose behind them; I doubt that Trump is the one thinking of this. I'm of the belief that Trump has a bunch of yes men around him that are smart and able to coerce him to do these things through careful manipulation strategies and feeding into his ego.

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    [–] 27 points 1 year ago (3 children)

    Market manipulation. If you can tank the stock market at a time YOU know well in advance, then you stand to profit "tremendously".

    He or people in his stead might have purchased put options ahead of the anouncement of tariffs. -> profits When he then says "it was just a prank brooo!" he can make money by buying the now devalued assets and sell them as soon as they recover. rinse repeat.

    I smell market manipulation maybe I am mistaken this smell and it is really the smell of mental instability....

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    [–] 27 points 1 year ago (3 children)

    Of course he doesn't. He should be in elder care not in the White House.

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    [–] 26 points 1 year ago

    Because his only job now is to sign any papers handed to him by his posse of self enriching gremlins. He doesn't need anyone's vote anymore, he doesn't need anyone's money (except if it starts with a B) and doesn't care anymore because he will likely die in office. If he signs horrible shit billionaires around him want, then he gets to coast as president, no thinking involved. This is what he is doing.

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  • [–] 25 points 1 year ago (4 children)

    Market manipulation. He is also a TV show host, so he is a showman. He likes creating drama.

    He is famous for bad management, causing his casinos to go bankrupt. His management style is going to bankrupt US and somehow make him richer.

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    [–] 22 points 1 year ago

    He keeps claiming they are "abusing us", but... Like, why did he make that deal then last time he was in office?

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  • [–] 21 points 1 year ago

    Tariffs allow Trump to pay for his tax cuts to the ultra wealthy by stealing from the working class, without them knowing. He also gets to position himself as a strongman and negotiator. There you go.

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  • [–] 20 points 1 year ago

    It’s part of their plan to eliminate the IRS and federal taxation, to be replaced by a universal sales tax. However, trump doesn’t have the authority to do that. But he can tariff. And a tariff is a little bit like a sales tax.

    Therefore, we get tariffs.

    Now, the other problem is that the tariff revenue is going to be like 1/10 that of the IRS tax revenue, which will require a 90% reduction in federal spending. Including defense, research, healthcare, and social security. Can’t collect social security tax if the IRS doesn’t exist either, so social security is getting axed.

    It will of course make 56 million seniors homeless, but thats a small price to pay for a 15% pay bump for me!

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  • [–] 17 points 1 year ago (3 children)

    Market manipulation .... upset the system .. make it dive ... buy cheap ... sell them high

    Keep doing this for the next four years until you become king of the world!

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    [–] 15 points 1 year ago (1 child)

    It was really weird when he was telling Zelensky during that meeting that he and Putin had been through hell with the collusion investigation. Like why would putin care?

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    [–] 15 points 1 year ago

    Does he know where he is, what time of day, or even which day of the week? ok maybe we should see if he can repeat this: "Person, Woman, Man, Camera, TV" he seemed to pride himself in his ability to allegedly be able to do so..... .....allegedly....

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  • [–] 15 points 1 year ago

    Trump's 'beautiful' tariffs are just ugly taxes on consumers and businesses alike.

    🐱

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  • [+] 14 points 1 year ago* (last edited 1 year ago)
    [–] 13 points 1 year ago (2 children)

    The big corps can weather the storm, smalls will have to sell, consolidate and monopolize is the plan as I see it

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