Wednesday, 5 March 2025

The play ground bully in the oval office

How bullying American citizens and allied nations ends up being detrimental for the US and its economy.

There are too many government institutions and civil servants on the pay-list. So let's fire some, close down services which are a waste of revenues and/or crank up the annual deficit. Sounds great, like the MAGA slogan.

But who does US-Aid (just to name one targeted institution) buy from? American farmers, good GOP supporters from the Mid-West. They already have second thoughts about their support of D. Trump.

With an ally like the US, who still needs enemies? The first tariffs taking effect are the 25% import for Canada and Mexico. De facto, this results in the US withdrawing from the NAFTA agreement. Canada has been swift to take counter measures, claiming an alternative for its imports and exports: Europe and Mexico. The NAFTA trade between Mexico and Canada, bypassing the US is set to increase.

But there still are victims: US owned producers in Canada and Mexico, mainly exporting to the US are likely to be heavily impacted. Canadian counter measures makes the imports from the US of components more expensive, while the US tariffs on Canadian exports cripples the export of the Canadian manufacturer. 

Chinese exports being shipped to the US are impacted while still at sea. Who will pay the piper? The US importer? The chinese exporter or the US consumer? I think I know the answer...

With an ally like the US, who still needs enemies? 

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