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[Lord Dampnut] Tariff Rationale is Too Childish to Consider [1]

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Date: 2025-04-05

So [Lord Dampnut] rolled out a policy which says trade deficits are bad and the result of manipulation and cheating. To address this he rolled out a formula which can be generally summed up as countries that export more to the US than they import will be hit with tariffs which will cut their trade.

To illustrate why this is stupid, let us consider three countries with simplified trading dynamics. We can call them SA, C and US. US imports cheap plastic crap from C, and exports an equal value of weapons to SA. SA imports weapons from US and exports an equal value of oil to C. C imports oil from SA and exports an equal value of cheap plastic crap to US. Now, anyone can see that the three countries have a perfectly balanced trade. However if US elects an idiot as president, he might see that they have a deficit with C and decide that is a problem, and that tariffs to cut the deficit are a solution. But if US puts a tariff on C, the balance is broken. C will no longer import from SA and SA will no longer import from US. So any cuts to the deficit with C are offset by cuts to the surplus with SA.

Now I am aware that reality is more complicated, but the basis of the policy and explanation given are not more complicated. Now, [Lord Dampnut] may be that stupid, but Scott Bessent isn’t. Neither is Peter Navarro or Howard Lutnick. But these guys were saying versions of this crap before [Lord Dampnut] appointed them. And now they’re agreeing with this ridiculous formula. It doesn’t make any sense to me. An across the board 30% tariff hike would have made more sense. So what is the motivation behind the stupidity? Are they trying to make things intentionally complicated just so voters will be confused? Are they blowing up the economy just for the lulz? Are they just repeating [Lord Dampnut]’s BS because that’s their job, and it somewhat aligns with their actual nefarious schemes? What is going on here?

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[1] Url: https://www.dailykos.com/stories/2025/4/5/2314695/-Lord-Dampnut-Tariff-Rationale-is-Too-Childish-to-Consider?pm_campaign=front_page&pm_source=more_community&pm_medium=web

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