The markets are having a difficult time figuring out where Trump is going on tariffs. Are they leverage or an effort to create a new economy? Are they intended to be temporary or permanent? The public doesn’t know.
In reality, the story is different with each tariff. Here is a guide for you:
- As with the DOGE staff cuts, the tariffs on Canada are nothing more than a display of personal dominance. They make no sense either as an economic measure or as leverage in a war against drug gangs.
- The tariffs on Mexico are also motivated by the desire to show he’s the boss, but closing a back door for Chinese imports and fighting drug gangs also figure here.
- The steel and aluminum tariffs are intended to be permanent. Trump wants to revive domestic manufacturing in those fields.
- The Chinese tariffs are leverage for a deal that will result in managed trade. The terms of the future deal may also extend to geopolitical issues.
- The coming reciprocal tariffs are supposed to be the springboard for the Godly Society. They may change somewhat over time, but expect them to remain in place for the entirety of Trump’s term.