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#tradewar

172 posts113 participants6 posts today

One of the perverse things about Trump's tariff taxes appears to be that it, in some cases, they will make American-made goods *more expensive* than imported ones.

How so?

Imagine this.

There are two identical products that sell for $100.

One is manufactured in Australia, one is manufactured in the US.

For both products, there's $75 worth of parts and components made in China.

The Australian-made product is hit with a 10% tariff tax. That's $10. So it would retail in the US for $110.

The $75 worth of Chinese-made parts in the American-made product are hit with a 34% tariff tax. That's $25.50. So it would retail in the US for $125.50.

So if I'm not mistaken, it works out $12.50 cheaper to export the Chinese-made parts to a low-tariff-tax country like Australia to assemble before importing them to the US, than it is to just assemble them in the US.

Also, how is it not inflationary to make the cheapest product in the market $110 rather than $100?!

It gets even worse for exports.

Let's imagine the EU reciprocates Trump's 20% tariff tax on imports from the US.

That $125.50 US product gets slugged with an additional $25.10 tariff tax in the EU. That's $150.60.

The net result is American goods end up far *less* competitive.

#tariff#trade#trump

Trump tariffs open rift among top Republicans in Washington

> A group of #Republican lawmakers and conservative donors has hit out at #DonaldTrump’s sweeping new tariffs on #US trading partners, signalling some unease within the party at the president’s economic strategy.

> Trump broke with Republican free-market orthodoxy again on Wednesday, launching a new #tradewar that sparked a sharp sell-off in equity markets amid fears for the global #economy
archive.is/2025.04.03-210049/h #MAGA #Tariffs

Former Greek Finance Minister Yanis Varoufakis speaks to university students in Brazil about what the #Trump regime is really up to i.e. a "controlled disintegration" of the global economy in order to maintain US hegemony in the world.

He likens this to the "Nixon Shock" of 1971, when the US abandonoed the 1944 Bretton Woods system and planted the seeds for #neoliberalism

#tradewar

(Intros in Portuguese, the rest in English...a little long...72 minutes).

youtube.com/watch?v=uYTSrmtu-W

Da Trump sich als absolutistischen, gottgleichen König sieht und seine Mitschurken als adelige Gefolgschaft:
Ob er wohl weiß, dass man sich in Europa dem gierigen Adel, wenn er es zu weit treibt, gern mal per Fallbeil zu entledigen pflegt? 🤔
Man könnte mit einer Guillotine ja heutzutage sinnbildlich den Kopf vom Körper trennen: Buy European - starve Trump!

Wird Zeit für eine wichtige Lektion für die USA: Die Welt lässt sich nicht alles gefallen!

#USA#Trump#Tradewar

This is what a Montreal to Denver flight on an Airbus A220 looked like when I flew home this morning.

Been a long time since I've been on a flight this empty. I guess when you keep shitting on your neighbor's lawn, they stop visiting.

Going to take a generation or more to fix this damage we're inflicting on ourselves.