Related to his evolving posture and policies related to tariffs, what most tend to forget — or in many cases, simply ignore — about Donald Trump is that he is by his very nature a dealmaker. Using tools of leverage to negotiate deals is in his bones, and as President of the United States, he possesses more and stronger tools of leverage than any other human on the planet.
Trump’s political adversaries and U.S. trading partners ignore his basic negotiation strategy, which he has laid out in multiple books. That strategy involves staking out an unreasonable position that is far beyond the actual end result he wants to achieve to force his negotiating counterparty to move in his direction, and to modify his positioning until he reaches his desired outcome.
Even his strongest critics, Democrats, know that but they continue their smear campaign against him.
Thus, a 25% tariff invoked on imports of, for example, steel might become a 10% tariff a month later and be gone entirely a few weeks after that, depending on the response of the counter party.
At the end of the day, the net impact on the economy and individual companies would amount mainly to a temporary loss of certainty in their ability to plan their business, but not a lot else.
Read about Trump's art of his deal making
3 comments:
I don't mind paying 2 or 3 times the usual cost for things if it helps America in the long run. We all have to do our part during these tough times.
It's going to be short term pain for long term gain.
I agree. Even though he promised lower prices quickly everyone knows that it isn't magic and will understand not being able to afford the things you have the last few years. Some are going to be able to weather these bad times better than others but that's the way it has always been. Survival of the fittest, I think they say. Good times will hopefully be back next year and we'll be a better country for it.
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