The US doesn’t yet have the manufacturing base to make the products people are buying from overseas. They can’t magic these industries into existence so importers and companies will generally still source their goods and raw materials from the same places and swallow the 10% duty that they’ll pass onto US consumers, or sellers from across the world will open up new markets in other territories now that many countries are simply not buying American goods.
The US is a little over 4% of the global population, so the market isn’t as big or important as Trump imagines it to be, and with the likelihood of US citizens having less money to spend, that 4% has a reduced buying power.
USD will also grow ever weaker as time progresses and these tariffs stay in place, so there’ll be less and less need to trade in USD when the currency is weakening.
The US is a little over 4% of the global population, so the market isn’t as big or important as Trump imagines it to be, and with the likelihood of US citizens having less money to spend, that 4% has a reduced buying power.
That’s not really true. All these net exporter nations are definitely in trouble because the US consumes about 50% of global imports. The vast majority of the world doesn’t create as much demand for imported goods as the US, so the huge amount of demand taken off the world market will lead to deflation for all other countries that absorb the redirected goods.
I think it is a mistake to give too much weight to the logic of the capitalists and ultimately imperialists. The US does not generate demand. It subsumes 50% of global exports as a tribute.
The reduction of demand for goods and resources from the US is an opportunity for countries to build internal circulation so they may use their own production for their own needs and development.
Trump’s crude tariffs policy does this by creating shocks, but the US was never going to peacefully and gradually assist countries in de-dollarisation regardless of who was in charge.
The tariffs will be passed on to consumers, likely with a markup, and people will buy less and less as prices increase even further out of affordability. Obviously US manufacturing isn’t coming back, but that doesn’t mean imports will continue at historic levels.
Of course parallel to this, economic alliances like the BRICS are trying out dedollarized trade paradigms, and many countries are selling off their reserves of USD.
The US doesn’t yet have the manufacturing base to make the products people are buying from overseas. They can’t magic these industries into existence so importers and companies will generally still source their goods and raw materials from the same places and swallow the 10% duty that they’ll pass onto US consumers, or sellers from across the world will open up new markets in other territories now that many countries are simply not buying American goods.
The US is a little over 4% of the global population, so the market isn’t as big or important as Trump imagines it to be, and with the likelihood of US citizens having less money to spend, that 4% has a reduced buying power.
USD will also grow ever weaker as time progresses and these tariffs stay in place, so there’ll be less and less need to trade in USD when the currency is weakening.
That’s not really true. All these net exporter nations are definitely in trouble because the US consumes about 50% of global imports. The vast majority of the world doesn’t create as much demand for imported goods as the US, so the huge amount of demand taken off the world market will lead to deflation for all other countries that absorb the redirected goods.
That’s part of why China has been so focused on developing internal demand for the goods they can produce.
I think it is a mistake to give too much weight to the logic of the capitalists and ultimately imperialists. The US does not generate demand. It subsumes 50% of global exports as a tribute.
The reduction of demand for goods and resources from the US is an opportunity for countries to build internal circulation so they may use their own production for their own needs and development.
Trump’s crude tariffs policy does this by creating shocks, but the US was never going to peacefully and gradually assist countries in de-dollarisation regardless of who was in charge.
The tariffs will be passed on to consumers, likely with a markup, and people will buy less and less as prices increase even further out of affordability. Obviously US manufacturing isn’t coming back, but that doesn’t mean imports will continue at historic levels.
Of course parallel to this, economic alliances like the BRICS are trying out dedollarized trade paradigms, and many countries are selling off their reserves of USD.