And further from the post-Cold War Unipolar world order. And closer to World War III.
The US paid more last year on interest than on defence - $1.3 trillion, but this amount was much lowered by the $8 trillion foreign investors have in the United States. This has traditionally been perceived as stable.
But foreign countries are now being punished if they invested in US bonds rather than buy US goods. This doesn’t make sense, but neither does gutting of financial and consumer protection laws, or making up some number based on a formula too simple to mean much. Foreigners want their money out of American bonds, and prices are low in falling markets since there are ample sellers.
But don’t take my word for it (limited gift link, followed by normal link to same article).
This is harmful for the US and will involve more money than they can realistically accrue from the tariff tax on American co diners and companies. The biggest tax increase since 1968.
https://www.washingtonpost.com/business/2025/04/09/tariffs-stocks-bonds-markets/
Trade war escalations spark bond sell-off as companies worry about economy
U.S. bonds sold off as a global trade war escalated, with the Trump administration’s harshest tariffs yet drawing swift retaliation from China and the European Union.
Only if your only source of information is the Liar-in-Chief, his minions, and Fox.
As I noted in another thread, the Dow Jones (and NASDAQ) has suddenly soared six percent. I have no idea why.
Trump announced a 90-day tariff pause.
Details to come (so we’re told).
But not for China, I wonder if the panicky traders buying and selling have noticed that little detail?
Trump has backed down but continues the pissing contest with President Xi.
"Based on the lack of respect that China has shown to the World’s Markets, I am hereby raising the Tariff charged to China by the United States of America to 125%, effective immediately.
At some point, hopefully in the near future, China will realize that the days of ripping off the U.S.A., and other Countries, is no longer sustainable or acceptable.
“Conversely, and based on the fact that more than 75 Countries have called Representatives of the United States, including the Departments of Commerce, Treasury, and the USTR, to negotiate a solution to the subjects being discussed relative to Trade, Trade Barriers, Tariffs, Currency Manipulation, and Non Monetary Tariffs, and that these Countries have not, at my strong suggestion, retaliated in any way, shape, or form against the United States, I have authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately. Thank you for your attention to this matter!”
Isn’t that self-contradictory?
Which is it? A 90-day pause or a 90-day reduction to 10%?
Either way, this constant flip-flopping and uncertainty does not address, indeed it exacerbates, the underlying issue that the US is now known as an untrustworthy and mercurial trade partner.
I mean, it should be obvious, right? A 104% tariff, now apparently 125%? That makes the tariff more than the original cost of the item. The profit margin on the item obviously has to be less than that original cost, since materials, labor and shipping have to cost something. So even if they made zero profit on each item, they still couldn’t cover the tariffs. The money just isn’t there.
This sentence is incredible.
The man has absolutely no self-awareness at all.
Every country is on 10% for 90 days (but probably until Trump is convinced/forced to drop them further). Except China and possibly some random others that haven’t been specified. So it’s still a global trade war.
Oops! Trump did it again
He tariffed your trade
He tanked all your stocks
Then said, “Just Kidding”
OdF walks up to Trump with tears in his eyes (and plugs in his nose):
Sir, I’ve been to Lewis&Clark, I’ve been to Mammoth, I’ve been to Carlsbad; but yours is the most beautiful cave I’ve ever seen. There’s never been a cave so beautiful!
The penguins have not backed down. Retaliatory tariffs of 125% on imported guano have been imposed. San Diego Zoo and others with habitats are panicking over a manure glut. They are asking for a government bailout - purchase more for the national bs reserve.
MAGA (Manure And Guano Act) has been introduced by House Speaker Johnson with the backing of the entire Republican block.
So, he’s going to have one-on-one negotiations with 75 different countries, to discuss and resolve all the issues around “Trade, Trade Barriers, Tariffs, Currency Manipulation, and Non Monetary Tariffs”, and he’s going to do that all in 90 days? 1.2 days per country, assuming he works every weekend.
When is he going to find time to cheat at golf? Okay, I suppose he could squeeze in a round on the day he’s yelling at the penguins about their unfair trade practices, but that’s about it.
I’m going to officially call bullshit on this one.
As a Canadian living with 24/7 US tariff talk for months now - I have to wonder what kind of twilight zone I’m stuck in. A daily tweet from the orange turd contradicting or modifying whatever he said the day before and upheaving global stocks.
I am used to looking up what the weather is for the day - but now front page news is constantly what the tariffs are for the day.
It’s unreal how much global power this deranged idiot has.
Sorry, but this is not how tariffs work either. If you ship a good that costs $100 to the USA, of which, let’s say, $50 are due to the materials used, $40 are labor, and $10 are benefit*, if you then slap a 125% tariff on that good, it will then cost $225 to the American consumer (the original $100 plus $125 in tariffs), or just $215 if the producer decides to forgo their $10 benefit (but why should they?). So the question becomes whether the American consumers will be willing to fork up $225 for the thing that used to cost $100. If they do nothing changes, except they are $125 poorer than they would otherwise have been after buying the good. If they don’t, they will forgo the thing they coveted, and the producer will stop selling in the USA or go broke.
In neither case are American consumers better off. Either they pay too much or they don’t get what they want.
A 125% tariff is still bonkers, to be sure.
*It’s more complicated, of course: there is transport, packaging, taxes here and taxes there… but you get the general idea.
Also “truthed” by Trump a few hours before he paused the tariffs:
(don’t worry I didn’t visit the site, this was on archive.today)