Megaterio Llamas wrote: ↑Sun Feb 02, 2025 8:11 pm
I keep hearing that Trump wants to create fortress America and tariff the hell out of everything, eventually replacing income tax with tariff revenue and recreating the industrial engine that first emerged in the post civil war period. Apparently he's looking to return to what he considers to be a golden age for America; the period between the civil war and WW1 when there was no income tax and tarriffs paid for the government expenses. If this is true, these tariffs may be permanent.
As far as migrants and fentanyl go, that appears to bullshit. Just an excuse. More than 99 percent of the traffic comes from the southern border. Trump's extreme loathing of Trudeau probably doesn't help.
If he is moving to a system with no taxes and funding the government through tariffs, the USA and most likely the world will go into a major recession.
Prices will go up which leads to less trade, which leads to fewer jobs and lower salaries.
25% tariffs across the board will mean sky rocketing inflation, and the poor will become destitute.
Meanwhile the billionaire class will become even richer, as their already low taxes are completely eliminated.
It is not just the price of imports that go up, Often domestic products are dependent on imported parts. A farmer may be using pesticides or fertilizer that is manufactured abroad and use imported diesel for his harvester. Cars are notorius for having parts cross borders multiple times before being installed in the final product. And if both steel and aluminum is hit with import tariffs that price of the car may get significantly higher, even if it is assembled and sold domestically.
Free trade improves the lot for everyone. Tariffs destroy jobs and make everyone poorer.
This was proven in the 18th century already and still holds true today.
‘the smaller Aegean islands’ means any islands in the Aegean Sea except the islands of Crete and Evia.