Did you get your letter? Shigeru Ishiba and Lee Jae Myung got theirs.
Donald Trump on Monday posted his tariff correspondence with the leaders of Japan and South Korea on TruthSocial and I wish he hadn’t. Because now we know Trump writes to heads of state the same way he writes on social media: The tone’s needlessly accusatory and conspiratorial, common nouns are reimagined as proper nouns through superfluous capitalization and falsehoods are presented as facts.
Both Japan and South Korea stand accused of swindling America through unfair trade, which Trump defines solely in terms of trade deficits. As a reminder you shouldn’t need, there’s nothing inherently unfair, let alone bad, about bilateral trade deficits. The notion that trade deficits are intrinsically injurious represents a profound misunderstanding of economics or else a willful mischaracterization of international relations.
In the letters, Trump said both Tokyo and Seoul will face a 25% tariff in order to “correct many years” of “unsustainable trade deficits,” which he (mis)characterized as a threat to America’s national security. The irony of describing something that’s gone on for “many years” as “unsustainable” was lost on Trump. The tariffs kick in on August 1. The 25% rate doesn’t count sector-specific levies announced or forthcoming.
Trump’s letters are very hard to read not just as someone who’s highly educated, but as an American. He speaks like a child, ironic insult to injury in the context of letters written in an otherwise supercilious cadence. “We invite you to participate in the extraordinary Economy of the United States, the Number One Market in the world, by far,” Trump wrote, in the course of explaining how lucky Japan and South Korea are to be in business with America at all.
I hesitate even to dignify these letters, and not just because they’re embarrassing. Rather, because we all know — “we” meaning market participants — that at some point between now and August 1, both Japan and South Korea will either get a reprieve or negotiate some manner of agreement in principle with Trump, who’ll promptly thank his deal-making prowess for a “GREAT WIN!!”
Trump nodded to that possibility. “If you wish to open your heretofore closed trading Markets to the United States and eliminate your Tariff, and Non Tariff, Policies and Trade Barriers, we will, perhaps, consider an adjustment to this letter,” he said.
Later, Karoline Leavitt explained Trump’s strategy. The president, she told reporters, “is literally looking at the map and looking at every country on the planet, and seeing where they are ripping off the American people.”
Meanwhile, The White House is into it with Brazil’s Lula, who on Monday called Trump irresponsible and unserious for menacing the BRICS on social media. Trump on Sunday threatened to slap a 10% tariff on “any Country aligning themselves with the Anti-American policies of BRICS.” 13 hours later, in a transparent attempt to undermine Lula, he called legal proceedings against Jair Bolsonaro a “witch hunt,” demanding Lula “LEAVE BOLSONARO ALONE!”
In addition to being a flagrant encroachment into Brazil’s domestic affairs and a rather poignant reminder that Trump views Bolsonaro (whose supporters stormed Brazil’s seat of power two years on, nearly to the day, from the January 6 riots on Capitol Hill) as a kindred spirit, Trump’s remarks conjured uncomfortable memories of America’s interventionist track record in Latin America, where right-wing dictatorships were in the past viewed in Washington as preferable to leftist governments.
Stepping back from the squabble with Lula, if Trump’s concerned that a confederation of emerging economies is bent on “undermining” (as Leavitt put it) American economic interests, he should be working to shore up and bolster ties with nations which can be counted upon to perpetuate US economic and ideological hegemony. Nations like Japan and South Korea. Instead, he’s bullying them.
The broadsides against Tokyo and Seoul were the most potentially consequential announcements on Monday, but Trump later posted tariff letters to Kazakhstan, Laos, Malaysia, Myanmar and South Africa, threatening tariffs ranging from 25% to 40%.
Trump is a moron on a good day. There is no other way to put it.
Trump and the damn autopen writing trade letters. Can’t imagine the rest of the DM not colluding quietly to take down America a peg or three. Who doesn’t want to get back at a bully. As H continually and rightfully explains, America is the wealthiest country because of the global economic system we created post WWII. But apparently the spoiled brat on the block wants more. On its face it’s ludicrous, and hideous, that the self-proclaimed greatest country ever wants to punish the RoW for ‘ripping us off’. In the meantime our dear leader and his billionaire’s cabinet are celebrating killing as many Africans as they can in the name of what – making the billionaires even richer. This is America’s version of the Hunger Games, but played on a global scale.
I can hardly keep my frustration and humiliation with this idiot contained at all. The embarrassment and shame this doofus is causing will not go unanswered. The idiocy is so profound I can barely wrap my mind around it. Enormous mistakes and foolishness at every step. These antics can’t go on for forever. Something will break… and a vol kraken will be unleashed.
Seconded
Those of you who believe that the US should continue and step up restriction on tech products and the technology needed to produce them might give this some thought.
The US had had to beg, threaten and cajole South Korea and Japan to follow US restrictions to stymie the Chinese tech industry. Each round has been more difficult as those nations and Holland have been starting to balk at measures which damage their national champion exporters.
That was before these new tariffs were threatened. It does not make sense that it will be easier after this.
Bullies win in the short term. There is always someone bigger. I know we have the most weapons. But you can’t make people buy American. I watch hockey and it shocked me when watching a Hockey game with a Canadian hockey team and when the US national anthem played all the Canadians booed. I read after that, Canadians started canceling vacation plans in the US and throwing out US goods in stores. Just proof that Trump doesn’t know what he is doing.
I’m currently in Germany. I saw a BYD dealership in Stuttgart and their cars are indeed impressive. However, I haven’t seen one on the road. I see BMW, Mercedes, and Audi EVs all over the place. This is a country that continues to pride itself on manufacturing and buying domestically manufactured automobiles. They do this despite allowing BYD to sell here and without attacking their neighbors. If our goal is to be more like Germans are, we need to act more like they do.
A fully supportive social safety net. A progressive tax system that scales with income. Full investment in apprenticeship programs starting at age 16. Employees viewed as 30 year investments.
People here earn less money and pay more taxes than we do. But everywhere I’ve been I see a relaxed people. The bars and cafes are full every night of people socially engaged and not on their phones. It’s truly been an eye opening experience.
The reality of the TACO trade is none of this deficit stuff actually applies. It’s a horrible excuse to extort our trade partners. To get out of “trouble” all these countries need to do is personally enrich Trump. Build him a golf course, send him a 747, or throw some millions into his meme coin and he’ll go away.
All of the Trump disruption, bullying and greed is for what. It’s for nothing good, just to make some billionaires richer. I’m not sure when America started to lose its moral compass, but greed and self aggrandizement are all we have left as a nation. Too many Americans are blind to this, but our historical allies are not. If America’s global leadership and prosperity grew out of the principles outlined in the Declaration of Independence, then our reign is over. The days of supporting global democracy are over and have been replaced by authoritarianism aimed at unlimited wealth for the few.