There is no denying change in US policy. It has everyone taking, but what is the end game? Is it really about making America great?
Trump’s self admission that he prefers to negotiate from a position of power has certainly revealed itself through a barrage of threatened teriffs hitting almost all their trading partners. Notably, Canada, Mexico, and to a much lesser extend China, were hit hard. In the case of Canada, it came with threats to annex the country, make it the 51st state, and replicate any retaliatory teriffs. It seems part of the goal was to get Canada and Mexico to take a tougher stance on cross border drugs and illegal immigration.
Gas lighting of the American people was part his justification process with much emphasis given trade deficits. The lie comes in when he claims the US has been supporting other countries through these trade deficits. Trade imbalance exists everywhere and is more of indication of where resources can be obtained more economically. Purchase decisions are always based on the bottom line and if goods or services are cheaper in another country, that is where they are drawn from. It simply means the country drawing in those goods is not competitively viable and the suggestion this is deliberate support of another country is fallacy.
Adding teriffs in an attempt to “balance” trade will only hurt both countries as one looses revenue and the other pays more for the same goods and services. The idea is to force more activity in one’s own country hoping it creates more local stimulus. Reality is it drives local inflation while hurting relations and both countries involved. Although part of Trump’s goal may be to make America better, it will only hurt those who can least afford it as additional costs are passed down.
By hitting almost all trading partners at the same time, Trump has managed to further isolate the US from the rest of the world. For some reason, however, he believes he can re-ignite good relations with Russia who is already in bed with North Korea and China. This was done with more gas lighting and rhetoric against Ukraine. Trump’s attempt at blaming Ukraine for the war when his own country promised support both in protection and in their bid to enter NATO in the past may have been part of the reason Ukraine stood it’s ground in the first place. Would the war have happened if Ukraine didn’t push the NATO issue? Probably not in the same way, but would they have pushed the issue as much without American backing to begin with? Likely not. So it seems there is plenty of blame to go around.
On a more local to the US front, the investigation and dismantling of internal government departments by an outside elite who himself stands to benefit by these measures should be of grave concern. Indeed, governments need to be trimmed, corruption needs to be removed, but it is questionable at best being done by another elite with virtually no oversight. Results remain to be determined, but one can see how easy it would be to manipulate markets through simple “change” announcements and altering of government services. Can any of this be trusted?
Instability and US isolation is going to be the new normal for a while. Will the gamble to supposedly make America great pay off? Hard to say, but what is certain is hard times for most people while wealth continues to migrate from the struggling to the elite. The economic divide will foster further instability as the pair in the US carry on almost as if fulfilling prophecy.