this post was submitted on 15 Apr 2025
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Big flex from China. I'm waiting for a country to call trump's bluff by putting an export tax on their own goods sent to the USA.
Canada should have done this on everything. If the Americans can afford the tariff then there is room for us to charge more. Not really but yeah should do it.
If only.. America holds 20% of global purchasing power so an export tax like that would result in needing to lower local interest rates to boost domestic productivity, which would decrease foreign investment, eventually weakening the local currency.
It would be hilarious if a country that exports very little to nothing to the US did it to make a point though. Totally on board with that.
Truth be told, I think the only thing we really produced in the US was the US dollar. Sounds like it's the number 1 export for the US, and trump just toppled demand for it.
Oh this makes so much sense, it really all boiled down to this.
China is already weakening their currency to keep their exports (worldwide) more attractive.
Or, they just pay the tariff themselves. Could you imagine China going, "Cool bro, we'll just absorb the cost ourselves. Now what?"
I mean, that's what trump said they would do. That would make him look like a genius.
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That wouldn't really do much for China. The reason the tariffs hurt us is that we sent all our manufacturing to them (along with a few other countries). So the tariffs only make our stuff cost more. Footing the bill like that would just weaken China's position.
What would happen is the US dollar would be weaker, profits selling to the US weakened. It would still harm us primarily.