Liberation is not quite going as planned. The trade war that was supposed to make the whole world treat the USA “fairly” is starting to make a mark.
After weeks of trying to get China to start negotiations, the USA finally gave in and announced a great new deal. It was nothing of the sort, merely suspending the absurd 145% tariffs for 90 days and replacing them with an only slightly less absurd 30% rate in the meantime.
Scott Bessant proudly announced before the talks that they had identified five or six areas of importance to the US economy and they were going to focus on those. I’m no expert, but I would have done this part first, and only then picked a fight with a massive, powerful rival. Alienating the rest of the world does not help. In fairness, it does look like none of this was Bessant’s idea, ace economist Ron Vara being the likely source of the policy.
Walmart has announced price rises, leading to a wave of orange fury. Apparently, Walmart and China should “eat” the tariffs, although it’s not clear how anybody can absorb a rise of 145% of the purchase price. Even 30% is asking a lot.
Hard to sympathise. Corporations, big and small, were so afraid of the “socialism” of Harris, they voted for a criminal who has now hit them with effectively a massive rise in corporation tax. Serves them right.