The Thinking ‘Kat: The Tangerine Tyrant’s Tariff Tantrum
I have to despair at the current state of the tariff situation. Trump has inflicted economic chaos upon the world, without any care for the damage this will do, and that includes his own country. His reasons (and I cannot believe I am writing this) are not necessarily without merit, but his actions are beyond reprehensible. They are also laced with ignorance of global – and national – business.
Trump wants American manufacturers to take the lead in developing US products. Fine, there are actually plenty of advantages to regional production. Businesses won’t have to factor in transport costs and time. Local manufacturing will lead to local jobs. Less shipping should equate to an environmental boon, as there should be fewer planes, ships, trucks and trains to pollute the planet (though you can guarantee environmental concerns are not part of Trump’s thinking). However, for some countries, it is firstly impossible to produce everything in- house, and secondly, it will take time – and money – to build factories and assembly lines. In a further twist, some companies will still need to import the materials to build the factories! These costs will not be absorbed by businesses, just as businesses will not absorb the tariffs. These costs will be passed down to the consumer, AKA the general public. For the average American household , Trump’s tariffs will cost as much as $2,600 a year. This is without considering the cost of starting up regional production, and nor does it consider the impact of tariffs forcing some businesses to either cut their workforce, or even close completely (with all the negative consequences for local economies).
In the midst of all this, Russia has curiously escaped Trump’s childish trade war.
No one is winning in this scenario, not in the short term, and not in the long term, save perhaps for the executives at the top. As prices rise, you can guarantee they’ll be taking advantage, exploiting the situation that will cripple so many others. It is faintly hilarious to see that Trump has walked back some of his tariffs, perhaps becoming aware that acting like a bully, whilst also damaging the prospects of his own country, is not the way to conduct international business. Whether or not his awareness of this refrains him from further destructive behaviour, remains to be seen.
