How Donald Trump's Tarrif Wars Will Lead To Crash In Global Prices - Foreign Affairs - Nairaland
Nairaland Forum › Nairaland General › Politics › Foreign Affairs › How Donald Trump's Tarrif Wars Will Lead To Crash In Global Prices (700 Views)
| How Donald Trump's Tarrif Wars Will Lead To Crash In Global Prices by RevDesm0ndJuju(op): 10:36am On Feb 03, 2025*. Modified: 11:00am On Feb 03, 2025 |
Trump has implemented his Tarrif war with Canada and Mexico by slamming a 25% Tarrif on goods and commodities imported from both countries. The Mexican and Canadian governments have stated they will reciprocate in kind despite Trump's earlier threat to double the Tarrif if they dare do same on US goods. That means for every reciprocal action taken by both Canada and Mexico, the US government will double the Tarrif by an additional 25%. Trump has also noted that he will impose Tarrifs on European goods and that of Chinese exports to the US. For China, Trump is slapping a 10% Tarrif on all imported goods and has effectively placed a ban on Chinese chip imports. The craziest Tarrif so far is the 100% Tarrif placed on Chinese EVs. This appears to be a protectionist move to shield Tesla from better and cheaper Chinese EV brands notably from BYD. Trump is also hinting on not only banning China's disruptive DeepSeek AI that has outperformed Chatgpt and other US AI machines at a miniscule fraction of what it took to create and maintain the US versions. To make matters worse , DeepSeek is being offered for free and is open sourced. The fallout of this was felt in the Nasdaq tech sector with NVIDIA crashing as much as 17% following the release of DeepSeek. From all indications, China's tech sector is in the verge of retiring Silicon Valley . But what does all these portend for the global economy ? As Trump begins his protectionist economic model in a bid to kick start and boost American domestic industrialization, China, will seek for other markets outside the US (China's major trading partner) to offload their finished goods. Trump understands the vulnerability of the Chinese economy that has become too reliant on exports to the US and he is hell bent to cause panic for China. Most American brands will need to return back to the US but no matter the Tarrif on China made goods, the likes of Apple can not produce their overpriced iPhones (which cost just $30 to make in China) in the US at the same cost it will be done in China. That means , American brand products built in China will become more expensive if their factories are relocated to the US. This is a price Trump says it's worth to bear in order to put road bumps to China's skyrocketing economy. Trump knows that China without the US is fcked. China needs to create 3 million jobs every year for its teeming population or else unemployment levels will become unbearable. Without the US, China will have to look at other emerging markets notably , Africa and South America. So with this in mind , China will begin to aggressively push for an alternative BRICs currency outside the USD which most South American and African nations have shown readiness to adopt. The goal of Trump's trade wars is to bring back American industries. This is a wise move as the world is becoming weary of the USD global hegemony and the US using sanctions and seizing assets of countries who go against that hegemon. The case of Syria is one of such prime cases on how the US used sanctions so effectively to bankrupt that nation and went as far as occupying it to steal it's oil and deny Syria its most fertile and productive regions. The gangup against Russia and brazen theft of their foreign reserves held in Western banks totalling up to $300bn has made many nations to question holding their reserves in western banks and in USD. This led to acceleration and acceptance of BRICs by many nations. So what will a BRICs parallel economy look like?. For one, energy prices will be much more stable and cheeper without the gambling dens of London and New York speculators. Finished goods from China will be much cheaper and countries under the BRIC sphere will get more value for their resources than they did under the US dollar hegemon. In a nut shell, Trump's Tarrif wars will accelerate the dearth of the USD as a global currency and will lead to the removal of the unwanted middle men in New York and London who fed fat from the fiat Ponzi scheme since the end of WW2. |
| Re: How Donald Trump's Tarrif Wars Will Lead To Crash In Global Prices by SalamRushdie: 10:51am On Feb 03, 2025 |
Spot on |
| Re: How Donald Trump's Tarrif Wars Will Lead To Crash In Global Prices by RevDesm0ndJuju(op): 10:59am On Feb 03, 2025 |
SalamRushdie:The US hardy produces anything and whatever they produce like automobiles are trash . The biggest export the US currently dominates is p0rnograohy and LGBTQ ideology. The world will be much better off without the Anglo-Judeo-Masonic realm. It's time to say a big "fck you" to Uncle Sam and his rabid Jewish perveyors. |
| Re: How Donald Trump's Tarrif Wars Will Lead To Crash In Global Prices by helinues: 11:01am On Feb 03, 2025 |
The recession which I have been talking about since last year is around. Trump is only doing his best to reduce the impact I. His country |
| Re: How Donald Trump's Tarrif Wars Will Lead To Crash In Global Prices by Sirmwill: 11:01am On Feb 03, 2025 |
Trump probably thinks he is smart. If everything backfires, the US dollar would become nearly useless. |
| Re: How Donald Trump's Tarrif Wars Will Lead To Crash In Global Prices by Softmirror: 11:03am On Feb 03, 2025 |
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| Re: How Donald Trump's Tarrif Wars Will Lead To Crash In Global Prices by RevDesm0ndJuju(op): 11:14am On Feb 03, 2025 |
Sirmwill:America has no choice than to restart their industrial base which with the coming of Jews into power in the 70s following the death of the old European Christian money , moved all those factories to China so they can make profit from the CCP slave economic model If I were Trump I will do this . The only way America can slow the deficit and reduce their unsustainable debt is to bring back local industries and generate revenue from Tarrifs. The war in Ukraine , exposed how de-industrialised the US is. Russia's ammo and she'll factories are out producing the entire NATO bloc by a 1000:1 ratio and the same Russians still have an insane amount of Soviet era shells and ammos and the Russian economy hasn't been mobilised to war mode yet. The nuclear deterrent policy that was based on MAD Principle is ineffective due to Russian advanced hypersonic missile systems. So that means a nuclear exchange is off the table since the US were banking on their stealth fighters and submarines to deploy their nukes on Russia. With Russia having advanced hypersonic glide missiles like the low orbital MIRVs deployed on Ukraine a few months back, it is now clear that any confrontation with Russia must not include nukes but rather boots on the ground. Those boots will need alot of heavy weapons , artillery shells and tanks which the US can't produce. Trump's Tarrif policy is meant to put America back into war mode industrialization or make it quick to switch to one. As things stand now, America doesn't stand a chance in hell freezing over in a ground war with Russia talk more of a Russia allied with China and Iran. |
| Re: How Donald Trump's Tarrif Wars Will Lead To Crash In Global Prices by Sirmwill: 11:21am On Feb 03, 2025 |
RevDesm0ndJuju:Really Nice analysis You sound really intelligent 😇 |
| Re: How Donald Trump's Tarrif Wars Will Lead To Crash In Global Prices by Simplecity(m): 1:47pm On Feb 03, 2025 |
RevDesm0ndJuju:finally an intelligent and understandable take on why trump is tariffing everyone....unlike those other retards spamming threads with "trump bad" , "trump baby" trump bla bla bla....at least explain instead of just spewing |
| Re: How Donald Trump's Tarrif Wars Will Lead To Crash In Global Prices by gammarays(m): 2:04pm On Feb 03, 2025 |
Forget theories, it'll be difficult to kill the US Dollar. All other currencies, assets and whatever has the USD as base currency even the ever growing crypto market. Secondly US has built a foundation that is sustaining it and will keep sustaining it. That's what China, Russia lacks. How they managed to get a foothold in 80% of the world and still maintain it today is a great feat. Britain was able to remain relevant then because of this. China is advanced and good in what they do. However they're still isolated despite trying to play a big country role. Even her closest siblings Japan, South Korea are not in terms with them. Russia is good on her own and lacks the capability of expanding their influence elsewhere so they fail terribly. US is built in such a way that whatever affects it affects the whole world so they share their sufferings and gains with others. Trump is a real American patriot and is doing whatever he does to keep America strong. China banned mainstream technology and indiginized to make their economy better. Russia did the same. Why are people bitter with Trump for trying to do something similar? Countries all over the world have woken up. They're using what they have to get what they want which is working. We still have Nigeria and others who are still sleeping and wasting what they have. The time of reckoning is fast approaching. You're either at the top or below |
| Re: How Donald Trump's Tarrif Wars Will Lead To Crash In Global Prices by heniford2: 3:49pm On Feb 03, 2025 |
RevDesm0ndJuju:your very funny 🤣🤣😂 |
| Re: How Donald Trump's Tarrif Wars Will Lead To Crash In Global Prices by heniford2: 3:55pm On Feb 03, 2025 |
Sirmwill:it can never happen dear |
| Re: How Donald Trump's Tarrif Wars Will Lead To Crash In Global Prices by sunboy(m): 7:01pm On Feb 03, 2025 |
RevDesm0ndJuju:Your ignorance get PHD ![]() Yet you carry an android or IOS mobile device to type that mumuness ![]() Hahaha also on the internet ![]() |
| Re: How Donald Trump's Tarrif Wars Will Lead To Crash In Global Prices by sunboy(m): 7:13pm On Feb 03, 2025 |
RevDesm0ndJuju:You sound intelligent but you seem to be wrong on many of your assessments while I agree with a few. Did the US de-industrialized? NO, instead it shifted to strategic and critical products and not production of plastic and spoons. Oh I hope you know that all US military equipment are 100% MADE IN USA ? Hyping Russia that it has the upper hand because of Oreshnik is a joke lol ... there is a reason why both countries still avoid each other directly. Oh, you said Russia's production capacity for war is 1000:1 ... another fallacy. Russia cant even run any of its missiles without US/Western-made chips lol... another joke on you. Tarriffing your closest allies is a WRONG MOVE. Especially that same Mr. Trump renegotiated USMCA in his last administration, and Biden never touched it. Are you saying Trump is now working against himself if tariff was the only way? Now that he has reversed the tariff on Mexico now, what happens to your war-time accelerated industrialization ? its over already ? lol |
| Re: How Donald Trump's Tarrif Wars Will Lead To Crash In Global Prices by sunboy(m): 7:18pm On Feb 03, 2025 |
gammarays:Nobody will be mad at Trump if he is doing the same but NO, he tariffed Mex and Can 25% then China gets 10% ? are you guys joking? I am glad that you agree that the USD hegemony is not going away anytime soon lol.. even China who owns the largest economy in the BRICS bloc still hold USD in its reserve. Wonder why China didn't just keep its own currency yet ? ![]() |
| Re: How Donald Trump's Tarrif Wars Will Lead To Crash In Global Prices by alezzy13: 7:44pm On Feb 03, 2025*. Modified: 5:51am On Feb 04, 2025 |
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| Re: How Donald Trump's Tarrif Wars Will Lead To Crash In Global Prices by NothingDoMe: 9:48pm On Feb 03, 2025 |
Softmirror:Yeah it's now 1.46. It would most likely fall lower and Justin would have run away before they lynch him. |
| Re: How Donald Trump's Tarrif Wars Will Lead To Crash In Global Prices by NothingDoMe: 9:55pm On Feb 03, 2025 |
sunboy:The Chinese hold USD to reduce the value of the Yuan. A lower priced Yuan means investors patronise China instead of the USA. If they decide to dump the USD, the Yuan will rise, which translates to fewer investors and businesses coming to China. Does this explanation make sense to you? |
| Re: How Donald Trump's Tarrif Wars Will Lead To Crash In Global Prices by NothingDoMe: 10:11pm On Feb 03, 2025 |
RevDesm0ndJuju:Lol. Skewed analysis. Even the Russians know MAD is still a deterrent because of Nuclear capable NATO allies surrounding her. Which is why she tried to stop Ukraine but lost two other countries in the process. Someone in Nigeria however doesn't think MAD is still a deterrent because he is expecting America to fire Nuclear warheads from America. 😅🤷 |
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