Trump Working His Magic With Tariff Diplomacy
Trump will fix the border, persuade our neighbors to help and perform other feats that will look magical.
Although Donald Trump is seven weeks away from being sworn in as the nation’s 47th president, he is already showing that he can solve the nation’s most difficult problems. While many problems seem to have no good solutions, his well-placed cabinet and he will find ways to solve them. It will seem almost magical.
In today’s environment, long-term economic stability is difficult to achieve, especially considering the divided country. Yet Trump has offered solutions, that will soon be implemented, to bring long-term economic prosperity.
Trump realizes that our economy must be able to domestically produce the goods and services that are vital, even knowing producing outside of the US is often far less expensive.
The problem is that importing so much while exporting so little leads to a negative balance of trade that results in hundreds of billions of dollars flowing out of the country. This enriches our trading partners. Some are adversaries, like China.
Trump’s use of tariffs or the threat of tariffs, is already beginning to cure problems. This is a continuation of the policy Trump used during his first term in office. At that time, he discovered nearly every one of the US’s trade agreements was slanted in favor of our trading partner and to the detriment of the US.
His use of “tariff diplomacy” in his first term resulted in new trade agreements with Mexico, Canada, Japan, South Korea and India. The European Union vowed to make their trade agreement fairer. They didn’t do that so now Trump is threatening tariffs again. And China never purchased what they agreed to purchase.
The result of Trump’s policies will be more products made in the US.
Some Americans are concerned that the higher cost of producing domestically will feed inflation. Trump, however, will keep inflation low by reducing the tax rate on the profit from products that were imported but are now made in the US.
He will also reduce production costs by cutting the price of energy by up to 50%. This will be accomplished by dramatically increasing the supply of energy produced in the US. The increased supply will lead to overall price stability and more secure production.
Trump will implement other supply-side economic policies to encourage increases in the goods and services produced in the US. He does this mostly through tax policy and the elimination of counter-productive regulations. The increase in aggregate supply grows the economy and puts downward pressure on prices.
Trump will very quickly solve the problem of so many illegal and often criminal migrants coming into the country. Through his tariff diplomacy, he will help both Mexico and Canada secure the border and drastically reduce illegal immigration.
Trump makes sure the law is enforced. That will reduce the skyrocketing crime.
Every president since Ronald Reagan has failed to address the annual budget deficit problem and the huge public debt which now exceeds $36 trillion. While every Congress has said they will cut government spending, Trump will really cut spending.
Prior administrations have defined spending cuts as not increasing spending as much as planned. Congress has often said they cut spending by initially proposing a 5% spending increase and then reducing the spending increase to 3%. So, they say they cut spending.
Federal government spending has increased from about $4.5 in 2019 to $6.8 trillion in 2024. That’s why the deficit has grown. Annual tax revenue increased in nearly all those years. The deficit is caused by huge government spending increases.
Trump will bring peace back to the world, not through appeasement but by “peace through strength.” During his first term, Russia invaded no one, North Korea stopped firing missiles, Iran was too economically depressed to fund any organizations, Afghanistan was at a standstill with no Americans being harmed and China was being confronted.
At the end of his first term, peace agreements were being signed between Israel and formally hostile Arab nations. Magically, Trump managed to bring peace to the Middle East.
Likely in less than two years, Americans will marvel at Trump’s magic, as he produces a great economy, a mostly peaceful world, safe US cities, and a general feeling of optimism.
It will seem like Trump’s accomplishments were magical.
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I know a lot of “free market” conservatives that hate the idea of tariffs. But the truth is that the Europeans and the Chinese have used tariffs/taxes to stop American competition for years and that’s why, for example, you will never see American made autos anywhere in Europe or South America or China. Trump can and will negotiate a more level playing field and he knows that tariffs are rarely “the answer” but they are a hell of a great negotiating tool when used strategically and, if necessary, implemented tactically.