I believe Trump's idea of economics isn't sufficient to operate a lemonade stand, much less an entire nation. Plus, sycophants telling him he's a genius.
Trump seems too scared to actually implement the tariffs. He backed quickly from tariffs on Canada and Mexico. He is “exploring” reciprocal tariffs for 3 months. He knows a tariff war will slam the US economy and spike inflation. He’s a bully who is mostly bluster.
Is Trump equating VAT to tariffs? VAT is a sales tax at the consumer level. Notably, foreign travelers can obtain a refund for VAT upon leaving the country.
I agree DJT does not understand how tariffs work. BUT he sees the rest of the world jump when he wields that sword. I can’t stand every country groveling. I wish other countries could tell him “knock yourself out”, and band together to work without him. Yeah yeah I also know it’s not that easy.
Implementation of a VAT should be studied. Looking at our landfills, evidence the wastefulness of our collective consumption. Sophisticated marketing disguises wants as needs.
Given that Trump is a certified cheat and a con man, is it possible he is just manipulating the market to buy low when the tariffs kick in, then later he’ll drop the tariffs and sell?
Unlikely this is the reason, imho. There are million other options exists at his position to raise money-robbing schemes without disrupting everything and even without public attention
China has a capitalist economy strongly directed by the State. But without freedoms, the US is heading towards a similar model, but directed by a multi-million dollar technocracy. The death of the liberal democratic state. That is Trump's purpose.
Hello, Paul! I am a “free” subscriber. I could not find a way to convert to paid. Where some other substacks have a button saying “manage subscription”, yours only has “subscribed”, and pushing it, unsubscribes me.
2 points:
1) when tariffs raise the price of imports domestic producers will raise theirs to match because mkt will bear it - free profit
2) just counting goods & services deficits is only half the story, the Capital Acct needs to be factored in leading to overall trade surpluses - Intl Econ 201
It's hard to say how much of this is a) Trump not understanding b) Trump consciously lying c) Trump not caring either way as it makes for a good headline.
Trump and his economic advisors are utter idiots or liars. Exports don't pay UK VAT.
From Gov.UK -
"If you sell, send or transfer goods out of the UK you do not normally need to charge VAT on them. You can zero rate most exports from: Great Britain to any destination outside the UK."
Of course, all of this is true, and you are the expert. But the motivation is to destroy, so facts no longer matter as the arguments fall on deaf ears. You still need to post, for us to better understand. But out here, everything is crumbling. It IS a Titanic moment...
Do you think trump has any real concept of economics? Seems more like the billionaire boys club has figured him for a mark and he's going to be cast aside once he's served their purpose. I expect that Vance is in on the deal but is the next dupe in the chain.
Comments
https://youarewithinthenorms.com/2025/02/16/the-digital-nooses-predictive-policing-peter-thiel-and-algorithmic-genocide-podcast-anlysis-and-review-the-artificial-intelligences-council-of-trent/
come for the history of 20th C Trade relations, stay for the wonkery
This will cause price hikes.
Feels like the lying conman lied about his Day 1 priorities.
1) when tariffs raise the price of imports domestic producers will raise theirs to match because mkt will bear it - free profit
2) just counting goods & services deficits is only half the story, the Capital Acct needs to be factored in leading to overall trade surpluses - Intl Econ 201
From Gov.UK -
"If you sell, send or transfer goods out of the UK you do not normally need to charge VAT on them. You can zero rate most exports from: Great Britain to any destination outside the UK."