The Market is more powerful than the President of the United States

It is not just the market here.  It is clear that Trumps understanding of international trade is at best naive and terminal.  I had expected far more from him in terms of proper insight, and still hold out the possibility of somethng else that we do not know.  Yet, soft as it is, any tariff is an act of WAR.  And he essentially decalred WAR on the Whole world.

in that case,what happens is that you lose control of the outcome as your enemy confronts the new reality.  Just ask Putin how that all worked out as Russia is bled to death.

somehow he decided Canada was ripe for a little trade abuse.  Instead a real trade WAR has ensued and Canada is weaponizing all aspects of trade, introducing benificial policy for Canada often held off for decades.  

now please understand something.  All trade engages a tail of transportation and distribution.  It is not just about price ladies.  On tyop of all this is a few folks who organized it all and made it happen.  And they are all freinds and once established prices slowly optimise.

That is why the USA dominated the wheat trade from the Great plains due to long standing relationaships predating the St Lawrence Seaway.  suddenly trump makes eveyone mad and Canada gets to compete in markets they were effectively shut off.

This global TRADE WAR has allowed Canada to go on a full trade offensive to pry loose trade deals all over. Understand also everyone has each others number in the rolodex and the annual bottle dstribution plan.

Far worse for the USA ,is that all countries can now form a global trade alliance Excluding the USA as unreliable and make the USA spend years rebuilding relationships.  A true Cordon sanitare.

The USA must cancel all tariffs ASAP and start bebuilding.  USA Global Hegemony literally collapsed in 75 hours after been a given for sixty years.  please do not drag it out.  This whole MEME is a loser.

The Markets are adjusting to slowly strangle USA leverage.

The onlygood to come out of this is that no one will try this again ever.

The Market is more powerful than the President of the United States—Trump is finally realizing it.

Marjanul Islam

I Explain The Global Market & Make It Digestible 

 After making deals with the EU, Japan, and Korea, Trump thought he was close to solving the tariff issue, but the opposite happened. 

Regarding Japan, Trump claimed they would invest $550 billion in America, so tariffs were lowered to 15%. But Japan now says it’s not an investment, but a loan of over $500 billion at the market interest rate of 4%. 

The deal with Korea was similar—Trump announced he had secured a $350 billion investment fund from Korea. But the Korean government says it would be a loan to America, not for investment purposes. 

Then Trump made a deal with the EU— $750 billion for energy purchases and a $600 billion investment promise in America, specifically as Trump wanted. In exchange, the EU secured a 15% tariff rate. But the deal turned out to be a total humiliation for the EU. Von der Leyen (Top EU Diplomat) was heavily pressured, and now she says she probably can’t manage the $600 billion investment fund for America. Trump threatened that if the funds don’t come, tariffs on the EU will go up to a flat 35%.

On top of that, the INDIA issue came up. Initially, Trump set a 25% tariff on Indian goods. But because of India’s purchase of Russian oil, he added another 25%, making it a total of 50%. This means American consumers will pay more to buy Indian goods because of Ukraine—so where is “America First”? 

Just hours ago, Trump said he would impose a 100% tariff on chips and semiconductors entering the U.S. (except from American companies). Yesterday, he announced tariffs on pharmaceutical products could soar to 200%. In summary, tariffs have failed to bring industries back to the U.S.—which was their main purpose. 

And now, deals with foreign nations have turned into a complete mess. Most importantly, the main target of tariffs—CHINA—remains immune. The Chinese government has received a 2nd 90-day pause from American tariffs and may need 14 more pauses. 

Trump imposed tariffs to break market order—he wanted to build a secure supply chain at the cost of efficiency. But he failed. The market has its own natural order, influenced by trillions of factors. If someone tries to control the market by manipulating a few of those factors, the market will break in other areas. 

Tariffs have become the most consequential geopolitical experiment since World War II. And one man in Washington is playing with it alone, simply guessing tariff rates—how absurd. No one has the power to dictate the market—not even the President of the United States.