Trump has gone a little nutty, imposing a 25% tariff on all imported steel and aluminum, a 10% tariff on goods from China, and a threatened 25% tariff on everything imported from Canada and Mexico. I think there is some method to his madness, but only some.
Firstly, he wants to lessen the trade imbalance between the United States and many of its trading partners. That’s a worthy goal if the U.S. is ever to get its finances in order. I’m not exactly sure why Trump thinks tariffs are the vehicle to that end. There is nothing stopping their trading partners from imposing retaliatory tariffs in response. He’ll impose tariffs, and his trading partners will do the same. Everyone loses! But at the same time, he’ll tell Americans a sob story about how Canadians and Mexicans are treating the U.S. unfairly and it’s clearly their fault the U.S. is suffering. His fans will believe his lies but they will suffer just the same.
Trump’s stated reason for the tariffs are a national emergency because of a huge influx of fentanyl. That’s a dodge because the trade agreement negotiated by his administration during his first term forbids the tariffs he wants to impose. His way out of that is to declare an emergency and bypass the tariff restriction. Consider that according to his own government’s numbers, less than 1% of the fentanyl entering the U.S. is coming through Canada. Yet, we’re still getting tariffs at the same rate? It’s not the fentanyl. Don’t fall for his bullshit.
I can imagine somewhere along the line, someone pointed out that Canada relies on the U.S. more than the U.S. relies on Canada… and a dim bulb went on above his head. It occurred to him that a trade war would destroy our economy, and we’d come crawling to him for help. He could then help us by making Canada a 51st state.
Then his ego kicked in. This is Donald Trump after all. If he can make Canada part of the United States, why not Mexico as well? The same tactic should work. Mexico is not as rich as the U.S., right? He’ll bring all of North America under the U.S. flag. Then that same someone had to remind him that Greenland is also part of North America. Again, this is Donald Trump after all. So he talked about buying Greenland. He would be remembered in the history books as the president who more than doubled the size of the United States without any military action. I have no doubt his planet-sized ego found the end-game irresistible. On the other hand, his pea-sized intellect has nowhere near the knowledge to make it happen, if it’s even possible.
I firmly believe this started with the wise thought of reducing the trade deficit the U.S. suffers on multiple fronts. But then his ego took over and he decided to wipe out all the trade deficits, and take over all of North America by simply pushing harder.
I also believe he has no idea how this will all work out, and he’s far more confident than he has any right to be. He won’t succeed is taking over any other countries. Rather, he’s going to wreak holy economic hell as he flails about trying. And make no mistake, that economic hell will affect the United States, too.
