this post was submitted on 05 Mar 2025
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Donald Trump just imposed a 25 percent tariff on virtually all goods produced by America’s two largest trading partners — Canada and Mexico. He simultaneously established a 20 percent across-the-board tariff on Chinese goods.

As a result, America’s average tariff level is now higher than at any time since the 1940s.

Meanwhile, China and Canada immediately retaliated against Trump’s duties, with the former imposing a 15 percent tariff on American agricultural products and the latter putting a 25 percent tariff on $30 billion of US goods. Mexico has vowed to mount retaliatory tariffs of its own.

This trade war could have far-reaching consequences. Trump’s tariffs have already triggered a stock market sell-off and cooling of manufacturing activity. And economists have estimated that the trade policy will cost the typical US household more than $1,200 a year, as the prices of myriad goods rise.

All this raises the question: Why has the US president chosen to upend trade relations on the North American continent? The stakes of this question are high, since it could determine how long Trump’s massive tariffs remain in effect. Unfortunately, the president himself does not seem to know the answer.

In recent weeks, Trump has provided five different — and contradictory — justifications for his tariffs on Mexico and Canada...

...more in the article.

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[–] PersnickityPenguin@lemm.ee 20 points 3 days ago

It’s part of their plan to eliminate the IRS and federal taxation, to be replaced by a universal sales tax. However, trump doesn’t have the authority to do that. But he can tariff. And a tariff is a little bit like a sales tax.

Therefore, we get tariffs.

Now, the other problem is that the tariff revenue is going to be like 1/10 that of the IRS tax revenue, which will require a 90% reduction in federal spending. Including defense, research, healthcare, and social security. Can’t collect social security tax if the IRS doesn’t exist either, so social security is getting axed.

It will of course make 56 million seniors homeless, but thats a small price to pay for a 15% pay bump for me!

[–] Litebit@lemmy.world 25 points 3 days ago (4 children)

Market manipulation. He is also a TV show host, so he is a showman. He likes creating drama.

He is famous for bad management, causing his casinos to go bankrupt. His management style is going to bankrupt US and somehow make him richer.

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[–] Yodan@lemm.ee 26 points 3 days ago

Because his only job now is to sign any papers handed to him by his posse of self enriching gremlins. He doesn't need anyone's vote anymore, he doesn't need anyone's money (except if it starts with a B) and doesn't care anymore because he will likely die in office. If he signs horrible shit billionaires around him want, then he gets to coast as president, no thinking involved. This is what he is doing.

[–] Floon@lemmy.ml 11 points 3 days ago

The chaos is the point: make nothing normal, make nothing certain, and he can be free to do anything.

[–] meowmeowbeanz@sopuli.xyz 15 points 3 days ago

Trump's 'beautiful' tariffs are just ugly taxes on consumers and businesses alike.

🐱

[–] cyberpunk007@lemmy.ca 11 points 3 days ago (1 children)

Am I the only one surprised at how low the cost per household could be? I keep thinking it should be quite a bit higher.

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[–] TimeChild@sh.itjust.works 13 points 3 days ago (2 children)

The big corps can weather the storm, smalls will have to sell, consolidate and monopolize is the plan as I see it

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[–] ininewcrow@lemmy.ca 17 points 3 days ago (3 children)

Market manipulation .... upset the system .. make it dive ... buy cheap ... sell them high

Keep doing this for the next four years until you become king of the world!

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[–] leraje@lemmy.blahaj.zone 8 points 3 days ago

Techbro led gvmt - move fast, break stuff. Chaos leads to opportunity to profit, by which I mean him and his class to profit.

[–] turnip@sh.itjust.works 12 points 3 days ago* (last edited 3 days ago) (2 children)

Look at the Project 2025 document, its supposedly written by the heritage foundation but has a section on building a border wall and doing capital punishment. Its clearly crafted by Trump.

Inside it talks about tariffs, using them to force other countries to lower their tariffs against the US. I assume its meant to force a free trade agreement that is 100% free trade, and not a misnomer like it is now, he wants the massive shock so that country are entirely submissive.

[–] nectar@lemmy.world 12 points 3 days ago

You think trump is capable of not just coming up with the worst political takes known to man, but also is even aware of that much policy?

I think you give him way more credit than he deserves

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[–] RizzRustbolt@lemmy.world 3 points 2 days ago (1 children)

Because republicans want to fund the country entirely from tariffs instead of taxes.

Which worked out great for every country that has ever tried it.

[–] Phoneyponey@lemm.ee 4 points 2 days ago (1 children)

🖐No no. Different word. Totally different 👉🤚👋

[–] blazeknave@lemmy.world 9 points 3 days ago (2 children)

I don't get the $1200 #... If every component of my purchase goods is 25% higher to the manuf passed to me, shouldn't it be 25% of my annual spend?

[–] realitista@lemm.ee 12 points 3 days ago (1 children)

Not every good is imported. Not every country has tariffs leveed against it.

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[–] itslilith@lemmy.blahaj.zone 10 points 3 days ago (2 children)

25% on top of the old price, for goods not produced domestically. Assuming that's all of them, that'd be 25% of your spend going towards products (Services are part of your spend, but don't get tariffed), indeed. But some things get produced in the US, so I imagine they factored that in there. For the average household, this seems to amount to about $1200/a

[–] DarkDarkHouse@lemmy.sdf.org 10 points 3 days ago

Not arguing with you, just want to point out 25% is the new tax but that doesn’t mean the price is only going up 25%.

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