Taco Trump

“Trump always chickens out.” Robert Armstrong of the Financial Times.

President Donald Trump

The 9th of July was the deadline set by Trump and his administration for countries to finalize trade agreements. He raised the specter of reciprocal tariffs if countries ignored his deadline. To date three countries China, the UK and Vietnam have come to an agreement. Trump’s economics advisor, Peter Navarro declared that 90 deals would be made in 90 days. Realistically as time passed a goal of 12 deals was set by the deadline date; later extended to August 1, 2025.

Diverse National Responses

Countries are reacting differently to the U.S. tariff ultimatums, with many still in negotiations. Extending the deadline to August 1 suits both Trump and countries who have significant exports to the USA. Japan and South Korea automotive industries rely heavily on the United States market, the biggest for both countries is worth many billions of dollars. Both seek to avoid crippling tariffs. Other Southeast Asian countries and the European Union are still negotiating, hoping to keep the U.S. market open. China and Russia are still in negotiations.

Keep in mind whatever the tariff rate agreed to between the U.S. and other countries, the lower the rate the better for U.S. consumers, as ultimately it is they who pay the tariffs. For the exporting countries to the U.S., the lower the tariff, the better the sales of their products.

Threats Create Global Uncertainty

Trump knows no other way except to use blunt force and blunt instruments to enact what he dreams of, “MAGA”. Outsiders looking in, I’m one, are not taken in by his rhetoric. The way he called in the National Guard to quell immigrant protests in California was blunt force. Threatening China with 125% tariffs on their products is a blunt instrument. Threats of reciprocal tariffs earlier in the year, caused market panic, with stocks tumbling and fears of recession growing. The panic and fear forced Trump’s hand, resulting in his administration to freeze tariffs at 10%. Other countries were so uncertain with the U.S. tariff policies that they had to prepare contingency plans for whatever the outcome. The uncertainty will continue for at least weeks if not longer.

Hold Your Breath

With President Donald Trump in charge ‘uncertainty’ is a word we will all have to get used to. Countries, businesses, consumers, allies, enemies, everyone will never know what Trump will pull out of his Maga hat. Prepare for all foreseeable contingencies and hope Taco Trump flips the right way.

Taco Trump