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If every country he puts tariffs on ends up implementing their own retaliatory tariffs, what would happen?
They will. If they don’t retaliate, it gives trump the signal that he can do whatever they want. We will hopefully slowly see a shift in the world order.
You see, when the US pisses on the rest of the world, the rest of the world gets wet - But when the rest of the world will piss on the US, the US will drown.
The rest of the world starts building a new world order and economic system, one that will be a lot less advantageous to the USA than the one they just trashed.
I hope one of the first things to change is the ridiculous Intellectual Property laws the US forced on the rest of the world. Those laws benefit the US at the expense of everyone else.
So a tariff is like punching the other guy but also punching yourself, only the US is doing that to a lot of people so all the other countries get hit a few times sure but the US is beating itself black and blue.
As an example of that, Canada currently depends massively on trading with the US. US tariffs are devastating to Canada's economy.
But, over the last week or so, the Canadian dollar has done extremely well against the US dollar because for all the damage the US is doing to Canada, it's hurting itself so much more.
And I hope Canada can manage to find stronger trade partners with everyone else, especially the EU
It would be smart to diversify, but it's going to take a long time, and it's never going to be as efficient as just moving things across the biggest land border in the world.
Canada would have to build up the Atlantic shipping ports, and all the rail and highway connections leading to those ports to do more business with Europe. That's going to be expensive and take a long time.
As an example, Australia is an isolated continent so everything entering/leaving has to go by port. Its largest port is the Port of Port Hedland in WA. That port handles more than 500 million tonnes of cargo every year.
By contrast, the biggest port in Canada is the Port of Vancouver which handles only 140 million metric tonnes, less than 1/3 of what Port Hedland handles. Australia has multiple other ports over 100 million tonnes too.
Look at Cuba. Now look at the US. Now look at Cuba again.
Okay, now image Cuba but without the public health care, housing, jobs programs, and mass transit.
I don’t wanna look away from Cuba 😭
In your exampke Cuba is the rest of the world, not a small backwater embargoed country.
No, The US takes Cuba's place, just as in their example.
The US in the past pressured the world to embargo Cuba, now the US is forcing the hand of the rest of the world to work without it. Different causes, similar-lish effects.
The United States descends to the level of economic relevance as South Africa and the rest of the world continues as usual.
Trade tariffs can work if they are used as a scalpel, If they are applied very precisely and explicitly they kind of achieve the desired effect. Trump is just wielding them around like a mallet and is repeatedly hitting himself in the groin while everyone stands at a safe distance away and watches with mild amusement.
In addition, tariffs need to be seen as a rational thing that will be kept in place for a long period.
If Trump wants to bring manufacturing jobs back to the US, businesses need a minimum 5 year plan to buy or build factories, buy equipment, hire people, and so-on. That's a huge investment and a big risk. If the tariffs are cancelled before the factory is finished and orders start coming in, the investors might be out the entire amount.
Trump's tariffs are utter chaos. They're applied then removed, the value changes randomly. He's putting tariffs on US military bases and uninhabited islands. In that kind of environment potential investors are just going to convert their money into gold and wait out the chaos.
Imagine everything currently produced on earth loses about a third of its efficiency/affordability and a large chunk of everything has shortages/unavailability for the next 30 years.
Now imagine with the loss of trade relationships diplomacy slowly returns to that of the dark ages and a new era of war begins.
Things we take for advantage are peace and prosperity.
Umm no the rest of the world can trade with each other just fine it's just trade involving the states that will be hindered.
Yeah I misread the prompt as if everyone put up tariffs lol.
Death to folks who can’t afford to have their basic needs met.
I think they asked about the other countries, not US.
Did they? Unless they edited their comment, it sounds very open to me.