Trump still in his fantasy land

Trump and his administration think the whole world owes the USA a living. This is going to cost the USA dearly, having already driven friends and foes to go against his administration by almost totally ignoring his tariff deadlines or just telling him there is an alternative to the USA and the US$. It is going to be the whole Global South going against the USA and its cronies and sycophants.

Japan has almost been driven to manufacture cars in the USA since Trump's first term and yet is facing tariffs of 25% going forward. So does South Korea. These are close allies of the USA, supporting its agenda for decades and now being thrown under the bus. Next to be thrown under the bus will be India, if it still does not realize what is in store for its pacifying stance towards the USA. The USA is basically telling India to quit BRICS or face consequences. This is good news for BRICS if India were to be forced to quite the bloc by itself.

Recent news also emerged that Samsung has backtracked on its chip investments in Arizona, pulling back further investments for facilities supposed to start operation from 2024 to 2026, citing lack of a credible market to support further buildup of production facilities. This is a stark reality befalling all those chip makers building facilities in Arizona.

China is the main market for chips, and without the Chinese market, which is planning to be self-supporting going forward, the outlook for chipmakers in the USA is certainly not bright. Building chips just for the USA market alone is not feasible. The USA created this mess for itself by waking up the giant, trying to push China against the wall. It is going to backfire badly.

Trump is also pushing very hard for China to stop it from cutting off supplies of rare earth for USA manufacturing, both for commercial enterprises and the military. In fact, he is reported to have 'demanded' that China must not cut off supply chains from the USA. Trump thinks he is the emperor of China.


Anonymous