Optimum Tariff theory and ToT
Trump views tariffs as a silver bullet; every small or big problem the American economy has will fly out of the country to the other side of the world, which is already burdened with several fundamental problems or what Trump’s world calls third-world problems.
This part of the world can take some more, and why not when the most powerful man on this planet wants it?
Trade deficit, unemployment, inadequate manufacturing capacity, name it, and it will all be gone once tariffs are in place.
In Trump’s mind, the problems will vanish, and maybe Americans will have to be a little patient with the changes introduced, as he has said, “policies may cause short-term pain but will produce big gains over time.”
Trump’s logic is as good as a kid’s
This article tries to find some method in the madness behind Trump’s tariffs slapping spree, sparing no country, although he paused it for 90 days after volatility in the bond market made him jittery.
Trump’s rationality for things he does can be compared with a kid wanting to do something because the kid likes it, simply likes it. It doesn’t need to be logical or have any reason at all.