Liberal talking heads and Democrats are completely missing the ultimate intentions of the new administration as they pertain to the use of trade tariffs. The greatest misconception is that Trump is trying to rectify the current debt crisis in America by instituting tariffs on our trading partners. The effect of more tariffs by the US are speculative at best. New tariffs are often followed by retaliatory tariffs and higher prices.
Trump’s tariff strategy is to use economics to gain the cooperation of other countries regarding many sensitive issues. Why is this wise? It’s better than going to war with our adversaries. Economic strength is the new nuclear weapon that only the US can implement effectively.
It’s also obvious that Trump is using tariffs as a bludgeon in bilateral and trilateral negotiations with our allies and enemies. It’s highly unlikely that the US will unleash tanks onto Mexico and Canadian soil.
Take Canada. Trump is prepared to sanction Canada for previous trade decisions by our neighbor that have resulted in huge trade deficits. Canada and the US have sanctioned each other on many occasions in the past. They also are negotiating strategies to end illegal immigration into the US and the proliferation of illegal drugs into our country.
Trump’s aggression towards Canada does not include military force. What we want are fair trade agreements and other courtesies like a limitation on drug smuggling.
Consider Iran. This rogue nation supports terrorism throughout the Middle East and is working diligently to develop a nuclear weapon. It gains influence by force and intimidation.
The US has two choices to deal with Iran. One is to launch an all-out multi day attack on Iran to obliterate its military and stop its nuclear programs. This strategy will result in a mini World War III. It would upset the current fragile relationships and order in the region. It could cause Iran’s allies, Russia, China and North Korea to enter the fight, although this is doubtful.
A wiser strategy is to bankrupt Iran and inspire financial and political Armageddon in the country. The US can deprive Iran of cash flow from its oil sales, breakdown political ties with other Arab countries and stir the population of Iran against the ayatollahs.
Why haven’t any past presidents applied this strategy? Instead, they continued to contribute to other countries by establishing NGO’s like US Aid in which most money is used to support nefarious activities or line people’s pockets.
The US must use its economic strength to control other countries who step over the line. It’s a far better plan to sanction misbehaving countries with tariffs then marching into their country with soldiers. It’s pretty clear that Donald Trump is not going to sanction all countries that trade with the US. He’s using the threat of tariffs to get the attention of leaders who are not playing fairly with the US.