[News]Trump proves he is serious on tariffs - but it's not about trade

[Ronaldskk.]

https://www.bbc.com/news/articles/c0k808xdp18o

Trump vows tariffs on Mexico, Canada and China on day one
Would Donald Trump’s tariffs hurt US consumers?
The cost of washing machines in the US rose 12% or by about $86, after Trump hit foreign-made machines with a 50% tariff during his first term. Such increases, no matter how modest, run counter to Trump's promises during the campaign to bring down the cost of living.

But though Americans might be more sensitive to price rises now than they were in 2018, the political appetite for tariffs should not be underestimated.

Joe Biden criticised the tariffs Trump put in place on Chinese imports during his first term. But once in office himself, President Biden left the measures in place, even expanding them in targeted ways.

What is also clear is that Trump's selection of Bessent as Treasury Secretary will not temper the tariff push.

Amid the battle for his nomination he went out of his way to acknowledge the power of tariffs as a tool that had been pioneered by Alexander Hamilton himself, the first ever US Treasury Secretary.

But earlier this year he had also suggested that while tariffs might be used tactically, the main tool for the US rejuvenation of manufacturing would be a cheaper dollar.

Europe and the UK have been spared for now. But it is important to reiterate that these moves are not even the real bulk of the tariff policy outlined by Trump.

He wants to fundamentally change the global economic map, and reduce China and Europe’s trade surplus with the US, which he views as “ripping off America”.

The world is far more complicated now, however, than these binary economic relationships. The US is undoubtedly powerful enough to start rebalancing world trade.

Push things too far though, especially with G7 and G20 allies, and the US might find itself rather too isolated.