{"id":16434,"date":"2025-04-05T08:45:28","date_gmt":"2025-04-05T12:45:28","guid":{"rendered":"https:\/\/stateofthenation.info\/?p=16434"},"modified":"2025-04-05T08:45:35","modified_gmt":"2025-04-05T12:45:35","slug":"how-trumps-tariff-tizzy-is-burning-down-the-house","status":"publish","type":"post","link":"https:\/\/stateofthenation.info\/?p=16434","title":{"rendered":"

How Trump’s Tariff Tizzy Is Burning Down The House<\/span><\/b><\/h1>"},"content":{"rendered":"

<\/p>\n

Authored by Pepe Escobar<\/p>\n

Global Majority, rejoice! And step on the high-speed rail de-dollarization train.<\/em><\/strong><\/p>\n

\"\"<\/picture><\/a><\/p>\n

Circus ringmaster Trump\u2019s Tariff Tizzy (TTT), <\/strong>christened by himself as \u201cLiberation Day\u201d, is being\u00a0largely interpreted around the world \u2013 Global North and Global South alike \u2013 as Slaughterhouse Day.<\/strong><\/p>\n

This de facto uncontrolled economic demolition gambit starts with the warped fantasy that launching a customs war on China is a bright idea. As bright as collecting a few trillion extra dollars in tariffs assuming the rest of the planet will be somewhat \u201cencouraged\u201d to sell to the Hegemon, while pretending that these tariffs will lead to the re-industrialization of the U.S.<\/p>\n

The tragicomic mask of a self-appointed circus ringmaster of turbo-capitalism may be as pathetic as the European chihuahua rage boosting their \u201crevenge\u201d via Rearmament \u2013 with funds that they plan to steal from the savings accounts of unsuspecting citizens.<\/p>\n

The indispensable Michael Hudson has configured the key problem. Allow me a little tweak:\u00a0\u201cSanctions and threats are the only thing that the United States has left. It no longer can offer other countries a win-win situation, and Trump has said that America has to be the net gainer in any international deal it\u2019s made, whether it\u2019s a financial deal or a trade deal. And if America is saying, any deal we make, you lose, I win\u201d,<\/strong><\/em>\u00a0that Mafia extortion gambit does not exactly reflect the Art of the Deal.<\/p>\n

Prof. Hudson neatly describes Trump\u2019s negotiation tactics:\u00a0\u201cWhen you don\u2019t have very much to offer economically, all you can do is offer not to hurt other countries, not to sanction them, not to do something that will be against their interest.\u201d\u00a0<\/strong><\/em>Now, with TTT, Trump is actually \u201coffering\u201d to hurt them all. And they will certainly invest in all sorts of counter-tactics to \u201cget away\u201d from that \u201cstrategy\u201d of American \u201cdiplomacy\u201d.<\/p>\n

A trade war on Asia<\/strong><\/h2>\n

TTT attacks everyone, especially the EU (\u201cborn to hurt us\u201d, according to the circus ringmaster. Wrong, because the EU was invented by the Americans in 1957 to actually keep Europe under control). The EU exports roughly 503 billion euros to the U.S. a year, while importing around 347 billion. Trump is fuming non-stop about this surplus.<\/p>\n

So a counter-measure vendetta will be inevitably in store, as already advertised by the toxic Medusa von der Lugen in Brussels \u2013 incidentally the sponsor of every weapons producer in Europe.<\/strong><\/p>\n

Yet TTT is above all a trade war on Asia. \u201cReciprocal\u201d tariffs \u2013 not exactly reciprocal \u2013 were imposed on China (34%),Vietnam (46%), India (26%), Indonesia (32%), Cambodia (49%), Malaysia (24%), South Korea (25%), Thailand (36%), earthquake-hit Myanmar (44%), Taiwan (32%) and Japan (24%).<\/p>\n

Well, even before TTT, a first has been achieved: the circus ringmaster generated a once-in-a-lifetime consensus among China, Japan and South Korea that their response will be coordinated.<\/p>\n

Japan and South Korea will import semiconductor raw materials from China, while China will be purchasing chips from Japan and South Korea. Translation: TTT will solidify \u201csupply chain cooperation\u201d among this triad that so far was not exactly too cooperative.<\/p>\n

What the circus ringmaster really wants is an iron-clad mechanism \u2013 already being developed by his team \u2013 that unilaterally imposes whatever level of tariffs Trump may come up with on whatever excuse: could be to circumvent \u201ccurrent manipulation\u201d, to counter a value-added tax, on \u201csecurity grounds\u201d, whatever. And to hell with international law. For all practical purposes, Trump is burying the WTO.<\/strong><\/p>\n

Even tariffed penguins in Heard island in the South Pacific know that the certified effects of TTT will include rising inflation in the U.S., serious pain on its \u2013 delocalized \u2013 corporations and most of all the complete collapse of American \u201ccredibility\u201d as a reliable and trustworthy trading partner, adding to its certified reputation as \u201cnon-agreement capable\u201d \u2013 as the Global South knows so well. > \u0410\u043d\u0442: A rentier FIRE Empire (financialization, insurance, real estate, as masterfully analyzed by Michael Hudson), which offshored its manufacturing industries and was gobbled up by a pile of overleveraged hedge funds, Wall Street derivatives and Silicon Valley totalitarian surveillance in the end decides to strike\u2026itself.<\/p>\n

Poetic justice applies. Burning Down the House \u2013 from inside the house.<\/strong>\u00a0As for the emerging, sovereign Global Majority, rejoice: and step on the high-speed rail de-dollarization train.<\/p>\n

___
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