Happy Liberation Day? And Trump’s Great Speech on Tariffs

[LevelUP]

Are We Getting Screwed By Global Trade?
The S&P 500 collects around 30% of its revenue from overseas, highlighting how much businesses benefit from global trade.

Tesla sells 1.79 million cars per year, with 36.7% of them going to China. However, because those vehicles are produced in China, that 36.7% of Tesla’s $100 billion in annual sales doesn’t count toward U.S. export figures to reduce the trade deficit. 
https://www.cnbc.com/2025/01/03/tesla-ch...cline.html

Exports have to be physically shipped out of the U.S. to another country. Anything made by a U.S. company in another country doesn't count. Financial transactions don't count either.

The Tariff Formula
Trump’s tariff formula was simple: divide the trade deficit by total imports. In the case where the U.S. runs a trade surplus (like with the UK), a default 10% tariff was applied. While people can accept reciprocal tariffs—"what's fair is fair"—this approach isn’t reciprocal.
https://ustr.gov/countries-regions

The No Income Tax Idea
A proposal from the Trump administration suggests that by imposing enough tariffs, the revenue could eliminate income taxes for individuals earning under $150,000. However, with U.S. imports totaling about $4 trillion, a 10% tariff would only raise around $400 billion (perhaps $500 billion with additional measures). This falls short of the estimated $700 billion loss from eliminating those income taxes. Essentially, it’s a backdoor national sales tax, which could reduce spending and trigger a downward spiral in tax revenue collected.

[Ares]

Tariffs are only good for negotiating. Trade deficits are a non issue. Peter Navarro is probably one of the worst economists in history.

[davewill]

So, how long are the Trump supporters going to go along with this suicide pact?

[Ares]

Vietnam offers 0% US import tax; Cambodia cuts to 5%

[Ares]

Taiwan eyes zero tariffs with US, pledges more investment

Milei (Argentina) says negotiations for zero tariffs with US under way

Over 50 nations want to start trade talks with US after tariffs, Trump officials say

[LevelUP]

Taiwan eyes zero tariffs with US, pledges more investment

Milei (Argentina) says negotiations for zero tariffs with US under way

Over 50 nations want to start trade talks with US after tariffs, Trump officials say

It won't take much to consider this a win, and some self-described MAGA leftists are already doing so, given that $1.2 trillion in manufacturing investments have been committed to the United States since January 21st.

All of this is pretty complex, and not even ChatGPT can give a straight answer about the exact tariffs and trade barriers of each country, since these often vary by product category. So we do have to trust our elected leaders, though they should have done a better job of making their case. Trade will only improve if you fight for it.

[LevelUP]

GOP megadonor Ken Langone is latest billionaire to blast Trump’s tariffs: “I don’t understand the goddamn formula"
https://www.cnbc.com/2025/04/07/trump-ta...rypto.html

Apple’s three-day rout to 19%, a downdraft that’s wiped out $638 billion in market cap.

Analysts say that Apple is one of the most exposed companies to a trade war, partially due to its reliance on China for manufacturing its computers and accessories

Trump threatens new 50% tariffs on China
https://www.bbc.com/news/articles/c8rgkkl7v8lo

“If China does not withdraw its 34% increase above their already long-term trading abuses by tomorrow, April 8, 2025, the United States will impose additional tariffs on China of 50%, effective April 9,” Trump said.  In his post on Truth Social, Trump also warned that "all talks with China concerning their requested meetings with us [on tariffs] will be terminated!"

China knew this day might come. That’s why they have companies like Apple and Tesla with manufacturing plants inside China to protect themselves from a full-scale trade war.  They also have a near monopoly on rare earth minerals. 

The TikTok deal was reportedly halted after China said it would reject it due to tariffs. 

So, how long are the Trump supporters going to go along with this suicide pact?

Ride or Die?



btw, I made that meme   (scene from THELMA & LOUISE (1991)

[NotJoeBiden]

Great meme. Only suggestion is that they should be in a cyber truck.

[LevelUP]

Great meme. Only suggestion is that they should be in a cyber truck.

Power Proompter at your service.

[LevelUP]

Well, maybe Elon isn't ready to drive off that cliff with Trump.

Why Elon Musk is breaking with Donald Trump over tariffs
https://www.businessinsider.com/elon-musk-donald-trump-tariffs-opposition-tesla-china-byd-2025-4

Musk posted a video on X of legendary economist Milton Friedman extolling the virtues of free trade.
https://x.com/elonmusk/status/1909169096391811304

Trump trade fight: Customs starts collecting new tariffs on imports from 86 countries at midnight
https://www.cnbc.com/2025/04/08/trump-ta...china.html

Trump Says U.S. Can ‘Absolutely’ Make iPhones – Press Secretary Leavitt. Err.
https://x.com/DD_Geopolitics/status/1909673059730309500