Given the recent historic performance of the US Economy, I don't really get what it was that needed 'fixing' with the introduction of Trump's tariffs...?
Since 1990, America's per capita economic output has risen dramatically, passing almost every other major economy by a considerable distance. The U.S. produces today some 40% more per person than Western Europe and 60% more than Japan. Even with the G7 economies combined, accounting for 21% of global GDP, the U.S. alone lays claim to an astonishing 26%. Far from being a victim of unfair trade, America is outperforming its peers on nearly every major economic indicator.
From being one-time poster children for industrial strength, Germany's GDP has not grown since 2006. From being the feared manufacturing juggernaut of late 20th century, the economic star of Japan has faded with an aging population and low productivity growth. Even UK and France have suffered from lack of pace in innovation and output.
Trump's Misguided Tariffs...?
America was dominating. But Trump's bombast on a trade war painted a picture of breakdown and victimhood — that ran contrary to hard facts. Tariffs by his government on Chinese goods, steel, aluminium, and countless other imports may have been psychologically satisfying for some voters, but they were fiscally misguided.
Now there is a valid argument for not being too dependent on Chinese supply chains, especially in sectors such as pharmaceuticals, rare earth elements, and semiconductors. Rebalancing some of those trade relationships or diversifying sourcing approaches is a strategic imperative. But that is a long way from upsetting the whole system with across-the-board tariffs that increase U.S. consumer costs and incite retaliation against American exporters.
Protectionism can make short-term political sense—it appeals to nationalist sentiment and plays well in struggling industrial regions. But long-term, it’s a self-defeating strategy. America’s economic strength comes from its openness, innovation, and competitiveness. Blaming others while dismantling the very framework that facilitated decades of prosperity is not just unnecessary—it’s dangerous.
Final thoughts... all over now..? Or Not...?
What Trump's administration needs to remember is that The global economy isn’t a zero-sum game.
However, they are clearly smart enough to know that, probably what this recent tariff spat was all about is creating instability the firm could trade off and take an even bigger slice for themselves, there's no other rational explanation!
Posted Using INLEO
