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The tariffs are going to be used as leverage in negotiations in the following months. If countries sign on to trump's new trade agreements, it likely won't make
by Workaccount2 2y ago
The tariffs are going to be used as leverage in negotiations in the following months. If countries sign on to trump's new trade agreements, it likely won't make sense to rescind them.
Stephan Miran, Trumps top economic advisor, laid out exactly what they are doing in an essay he wrote back in November[1]. For better or worse, this is what they seem to be moving forward with, and the document spells out things like unilateral tariffs and expecting a lot of potential market volatility, before offering trade terms that seek to devalue the USD in return for protection and favorable trade agreements.
In short, they are trying to force a global trade restructuring that will increase US manufacturing strength and weaken US financial strength - all while trying to keep reserve currency status.
[1]https://www.hudsonbaycapital.com/documents/FG/hudsonbay/research/638199_A_Users_Guide_to_Restructuring_the_Global_Trading_System.pdf https://www.hudsonbaycapital.com/documents/FG/hudsonbay/rese...
- russdill 2y agoThis isn't 4d chess. The first trading partners he threatened were Canada and Mexico, who we set up a trading agreement with in his last presidency and declared it the best trade agreements ever.
- Workaccount2 2y agoDon't worry, I'm stuck on the same terrifying bus as you.