The Trump administration has again resorted to unrealistic grandstanding that many countries are now queueing up to negotiate the tariff issue with the USA knowing that the deadline is expiring on July 9. So far, from all reports, only the UK has negotiated and given the wrong end of the stick by Trump. And as usual, Kier Starmer is proclaiming victory even though being forced to bend over backwards by Trump. Even Japan has pulled out over the demand that it has to increase its military budget to 5%.
Trump is even trying to congratulate himself that he is also negotiating with China, the second country besides the UK, when the only reality is that after two meetings, in Switzerland and London, only a framework for further negotiation have been declared. That is nowhere near to a complete agreement. Yet Trump is gloating about China agreeing to loosen its rare earth exports to the USA. How delusional he is, or should I even say he is out of his mind.
Countries not going to Washington to kiss Trump's arse are saying, no big deal if we just cut off trading with the USA. They are beginning to realize that there is a bigger world outside the USA with more than three quarters of global population to trade with. China, India and Africa together have 4.2 billion headcount and that is not taking in other big population countries like Indonesia and Pakistan.
China has completely adopted zero tariffs to help African countries and who do we think they will do business with henceforth.
Anonymous
Trump is gloating about his deal with Vietnam with tariffs reduced to 20% instead of 48%, while Vietnam will allow USA products to enter Vietnam tariff free.
ReplyDeleteIn the face of the zero tariffs imposed by Vietnam, what products are USA companies making in USA going to sell in Vietnam that the Vietnamese are not already making themselves? Maybe Trump needs a market for his US$5 million golden visas, gold coins with his face, his own brand of lotion and perfumes, maybe arm-twisting Vietnam by force if necessary? India was arm twisted to buy expensive military equipment because Indian consumers cannot afford other expensive USA products. In the process Modi backstabbed Putin by buying weapons from USA instead of Russia. Trump laid a trap for Modi, to sour his relationship with Putin, and he fell headlong into it
On the surface, Trump has a good deal with Vietnam, until you realize that many USA companies are doing manufacturing in Vietnam in every sector, and Trump's 20% is also punishing them, with their exports to USA more expensive for USA consumers. Most other manufacturing entities are basically Chinese companies manufacturing in Vietnam, and their products will also be more expensive for the USA market. The loser is still USA importers and consumers.
On the other side of the coin, what products are the USA selling to Vietnam when many of them are already manufacturing products in Vietnam, competing with the Chinese and others? Are they going to be cheaper than Chinese manufactured goods made in Vietnam factories? So, even without tariffs can imported USA products sell in Vietnam?