By John Q. Hosedrinker 
President Trump reignited trade war concerns by threatening Japan and South Korea with 25% duties and additional tariffs on goods from Laos, Myanmar, South Africa, Malaysia, and Kazakhstan. These actions, threatened under the International Emergency Economic Powers Act, came alongside the extension of a key negotiating deadline to August 1st. The move caused market volatility, reminiscent of earlier disruptions in trade policy. Despite the uncertainty, analysts suggest the impact on stocks may be limited this time, while acknowledging potential setbacks for the Federal Reserve’s stance on interest rates, given the inflationary concerns from tariffs.
Read the original article here
Trump threatens 25% tariffs on Japan, South Korea goods with deadline near. It’s a truly remarkable situation, isn’t it? We’re talking about a potential 25% tariff on goods from Japan and South Korea, two of the United States’ closest allies. The fallout of this decision is already being felt, with markets reacting negatively and a general sense of unease spreading. This is the kind of move that throws everything into flux, and it seems like the clock is ticking, or rather, the deadline is looming.
He appears to be locked into this strategy, perhaps trying to avoid appearing weak. There’s a fear of being seen as someone who backs down, and so the tariff talk continues. This is a game of brinkmanship, and the consequences are very real. We’re talking about key suppliers of things like autos, electronics, and steel, which impacts everything from the price of your next car to the cost of everyday household goods. And to add another layer, the US isn’t paying for the military presence in these countries; they are.
The fact that the economic well-being of the world seemingly hinges on the whims of one person is unsettling. It is a constant source of anxiety, and there’s a palpable frustration about the instability this introduces. The market drops, and then the whole cycle starts again. It’s a frustrating, almost cyclical, pattern.
The uncertainty and the changes in trade policies are tough to digest. How can anyone trust decisions that are as changeable as the weather? The constant back-and-forth creates a sense of instability. It’s easy to see how this could erode trust and damage relationships that have taken decades to build. It is incredibly damaging.
For anyone who works in international business or has a global supply chain, it’s a minefield. Just imagine what it’s like for someone who imports goods into the US; It’s enough to make anyone frustrated with these sorts of policies. When you see the market dropping in response to the letters being sent out, it speaks volumes about the level of concern and uncertainty that is out there.
It’s easy to feel like we’re stuck in an endless cycle, and to imagine what the future holds. The impact of these policies doesn’t just stop at a line on a balance sheet. It hits families, it changes the choices people make, and it affects their sense of security. For those with immigrant spouses, it can even impact decisions about where to live and the life they wish to build.
The approach feels like a form of manipulation, with an underlying attempt to manipulate the market for personal gain. The timing, the deadlines – it all adds to the uncertainty. The anticipation of new tariffs creates an uneasy atmosphere and the constant cycle of threats. The concern is that it all could damage the credibility of the US.
It feels like a game of chicken. We have these threats, but the question is how long can it go on? How long can the US push before it breaks? When deadlines are set, then postponed, the whole thing becomes a performance.
The argument that Japan and South Korea will get bullied into doing what the US wants is a miscalculation of their ability to manage. The complexities of international relations are not being handled in a smart way. It’s about the US and those allies.
What if the buyer of US Treasury bonds is angry at a time when the US needs buyers? It’s a bad situation and a concern. It is also important to note that the allies are already contributing to the US presence in their respective countries with billions of dollars.
There’s a feeling that it’s just a ploy, a way to manipulate the market for the benefit of a select few. But when the impact is the potential damage of our relationships with close allies, it’s hard to see any benefit. It is hard to see how any of this can benefit the United States in the long run. It’s like a bad negotiation tactic that’s repeated over and over.
The entire situation leads to many questions: What will happen when the market goes into decline? What will happen to the alliances that the US has created? It can damage the entire country.