Trump the Tarriff Taxin' Twit

Anything that Trump says is subject to being reversed at any given moment by Trump. But the particularly egregious “plan” that he has out forward re: Mexico either stopping Central Americans from coming to our border, or face trade tariffs, cannot be ignored.

He keeps lying to us about tariffs not being a tax on American consumers. But this, yet another, trade tariff tax on us, via Mexico this time, will also hurt Mexico and their economy. We have been net zero with immigrants coming form Mexico, but if we blow their economy, then Mexicans will again be inclined to come here, if our economy is stronger. The peso went down in value already. Tariffs hurt both parties, but Trump is grasping on to them like a snake oil cure all (that he doesn’t realize is actually toxic).

Also, meanwhile, the replacement trade deal for NAFTA, USMCA is less and less likely to be done. Trump cannot close a deal. Has he completed a trade deal with any country?

French old proverb: “In times of famine, the rich lose weight and the poor die”

Trump is playing bowling with the global economy.

The consequences of tariffs

The billions lost in the stock market have no major direct consequences, except psychological ones.

But psychology can play a key role.

The Dow Jones is still high. In the stock market, you only win or lose when you sell.

The Dow Jones over 5 years

The Dow Jones since 1990

The real problem with these tariffs is the collapse of global trade. Yet, it represents approximately 50% of global wealth production.

Between 1929 and 1933, due to tariffs, global trade fell by 69% in value and 25% in volume. In 1929, it represented 45% of global wealth production.

The share of trade in the global world economy

And Trump will isolate USA from every friendly country. China Japan and South Korea are negotiating against USA.

He is giving part of Asia to China.

Not sure I understand “share of trade”. When is something a good or service as opposed to it being “trade”?

No, it is global.

As far as i understand, the world trade represents roughly half of the world net product in value.