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magicreadu

-13 karma · joined April 9, 2025

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magicreadu··on Trump temporarily drops tariffs to 10% for most countries
Having dollar being the worlds currency is not necessarily a good thing. Yes, you can borrow at low interests rate for a while. But guess what? Those are still debts. And eventually rates rise due to inflation. Now you have hollowed out your industrial base and you are stuck with tons of debts.

Even if dollar gets weaker, better to have less debts and more industrialization

magicreadu··on Trump temporarily drops tariffs to 10% for most countries
Both you and OP are not looking at this from the right angle. The goal here is to decouple US from China. In the meantime, tariffs are raised on every country to gauge which side they are on. Once US knows who the allies are, they will negotiate to have those allies put up massive tariffs on China as well to prevent transshipping.

US wants nothing to do with China. As the biggest consumer economy in the world, the have that right.

And China has shown that agreement with them has no value. Remember that China promised trump in term 1 to massively import US goods and reduce fentanyl, in part to slow trumps tariff down. They did neither of those things. Trump hasn’t forgotten that.

magicreadu··on Trump temporarily drops tariffs to 10% for most countries
They know what they are doing. The goal is decoupling from China. They raised tariffs on everyone to see which countries stood with US and which stood with China. Once each country has made their allegiance clear, they delay the deadline to give more time for negotiation. They likely want every ally to raise their tariffs on China to be very very high, to avoid any more transshipping from China.
magicreadu··on It's all fun and games until somebody loses their retirement savings
It’s a full decoupling of number 1 and number 2 economies in the world - of course it’s messy. If you can’t stomach the turbulence, stay in safe instruments
magicreadu··on Trump temporarily drops tariffs to 10% for most countries
The reason they have reduced all tariffs back down to 10% even for the countries that were obviously transshipping (Vietnam, Myanmar, Thailand, Cambodia) is that they need time to negotiate with those countries, to make sure these countries now put similarly high tariffs (100%+) on China, so that transshipping is reduced to nothing