Trump’s tariff wars led to one of America’s most shocking economic defeats in 40 years

This was unthinkable only weeks ago, when the commission mantra was “mocked” the supply chain and the two parts were daggers drawn on EU rates on electric vehicles.

China is still intelligent for the large EU investigations on the theft of Chinese technologies and predatory investments. The EU is still intelligent for the Chinese export tsunami flooding its market, which has pushed the surplus of China structural trade with Europe over 300 billion euros ($ 515 billion).

But both have a larger wolf to face today.

He Lifeng, Chinese vice president, said that the two economic blocks should collaborate to defend themselves from Trump’s assault on the global commercial order.

“China is willing to work with the EU to manage economic differences in the correct way,” he said.

Trumpian’s commercial era is basically different from the early 1930s because a) the world was therefore much less integrated (trade was only 2 % of the US GDP) and retired further in protectionist or semi-uutaky blocks after the United States congress has been approved The Smoot-Hawley Tariff Act; EB) The Federal Reserve has worsened things infinitely by forcing a 25 % contraction of the offer of US money and pushing everyone to deflation of the debt through the Gold Standard between the two wars.

In that decade, Canada, India and (freely) Scandinavia joined Great Britain behind the wall of imperial preference. Germany put a cloak on Central Europe. The Japanese formed a commercial block based on employed Korea, Taiwan, Manchuria and northern China.

This time, the strongest reflection is to try to save the trade open in 80 % of the world economy, leaving the United States to stew in their absurdities.

Trump rates are, of course, unconstitutional. Article I of the Constitution gives the congress the exclusive power “to throw and collect taxes, duties, taxes and accusations” and for good reasons.

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The designers feared a drift to the monarchy if the president had an independent source of revenue, such as Charles that I had tried to make and abuse the justification of “emergency in war” for having collected money in the ship in the 1960s.

The congress delegated certain tariff powers to the White House in various acts, mainly in the 70s, but only for limited purposes. Trump abused them exactly in the same way as Stuarts by supporting, yes, emergencies, such as the fiction of Fenanil and migrants from Canada.

The data actually show that the United States is themselves a clear exporter of Fenestanil and migrants – and illegal firearms to be started – through the Canadian border.

Some Republicans are grumbled. The deputy Don Bacon declared last week that Capitol Hill had “made a mistake” giving the presidents too coveted to raise rates.

“We have the power of the bag and I think we should restore these authorities at home,” he said.

Good for him, but do not hold back the breath waiting for the common sense republicans to face the intimidation of the Trump-Musk-Maga machine. Nor do I expect moderation from the Supreme Court, now made to the Bonapartist cult of unitary executive theory.

We will learn Wednesday (Washington time) if the rates of the “Liberation Day” cover “all countries”, as Trump says when he is in a bad mood, rather than just a “dirty 15” with great commercial surpluses suggested by the secretary of the Treasury Scott Bevent.

Trump’s commercial guru Peter Navarro He says that the plan will collect $ 6 trillions of dollars ($ 9.5 trillion) in tariff taxes – he calls it entrance – in the next decade, which is a detector complaint.

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If it has to collect $ 600 billion per year, it will be a 2 % macroeconomic shock of 2 % of GDP, unless it is immediately compensated for tax cuts.

It will lead to the stagflation of Nixonian, inviting Nixonian price controls as the next logical step, to prevent inflationary psychology from taking hold in the late 70s, above all because Trump will almost certainly try to strengthen nutrition in welcoming his economic adventurism.

Navarro is telling us that the replacement of imports with US manufacturing articles will fail and that foreign companies will not actually transfer their factories to the United States on a large scale.

Navarro is also telling us that Trump’s rates are not counteracting to force the reciprocity of free trade. They are an end in themselves, a source of revenue that returns to McKinley Tariff of 1890, that a wise president William McKinley later regretted.

The average rate of the US rates was about 2.5 percent last year. JP Morgan provides that it jumps about 20 percentage points, pushing the risk of a global recession to 40 % this year. Goldman Sachs says that the effective total rate on European imports could rise to 36 % if Trump goes for the jugular on VAT.

“In all respects, the United States is now a ride when it comes to trade.”

Michael Gasiorek, director of the United Kingdom commercial policy observatory at the University of Sussex.

This will force a serious retaliation also by the commissioner Sefcovic-Pedantically intransigent with the Great Britain apostate, but a pussycat in front of a larger bully that will set in motion a spiral Tat for Tat while Trump affirms his pathological need for “Escalation dominance”.

He has already warned his victims not to talk. “If the European Union works with Canada to make economic damage to the United States, large -scale rates, much larger than expected, will be placed on both,” he published on Truth Social.

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But they will do it, because the world can no longer bear this behavior of Wolf Warrior and will sell each other until the temple descends on Trump’s head and theirs. Where do they lie the “put” Trump?

The S&C 5000, gold at $ US3500, Bitcoin A $ US50 or Tesla in bankruptcy? Let’s try it, right?

Telegraph, London

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