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Babies, Trump's tariffs have finally come down, hitting Canada, Mexico, and China. Canada and Mexico have increased tariffs by 25% on top of the original ones, while China, although seemingly only increased by 10%, due to different tariffs on different products and Trump imposing tariffs twice, when we average it out, the overall tariff on China is 30%.
What is the real purpose of Trump's imposition of tariffs? Personally, I believe that Trump is not simply moving manufacturing back to the United States through tariffs, as he knows this is not feasible. The real purpose should be to create an economic recession. Why create an economic recession? Because the Federal Reserve has not been lowering interest rates. So, without lowering interest rates, the interest that the U.S. government borrows is high. Trump hopes that even if he can reduce the interest on borrowing by 1%, it could save the U.S. government nearly $400 billion. If he reduces $400 billion, he won't have to borrow anymore and can pay off the old debts with the saved money.
And now Trump has done a few things to promote the interest rate cut in the United States, Musk's efficiency department has also laid off a large number of people to create a recession, and then raise the price of imported goods, which seems to cause inflation, but actually ultimately leads to an economic recession. After the recession, the Federal Reserve will cut interest rates, and as long as it cuts by one percentage point, it can save $400 billion in interest payments, so that the interest payments of 1.2 trillion can be reduced to 800 billion, so his difficulties will not be great. So whether he drives away illegal immigrants, improves the efficiency department's job content, or raises import tariffs, it is all to ultimately cause a recession in the United States and force the Federal Reserve to cut interest rates! It suddenly makes sense when you think about it! What do you think?
TRUMP-2.87%
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