The real reason Trump is waging a global trade war -- economics gurus, can you parse this?

[usonian]

Trying to make it simple, I think it says that raiding the treasury, benefits, defense, and so on, PLUS steep tariffs are all intended to raise money to finance a tax cut for the wealthy.

WHICH IS THE LAST THING THIS COUNTRY NEEDS , in the opinion of many.
And that's his motivation. Welfare for the rich, financed by the many.

Anyway, here's the article.

https://www.telegraph.co.uk/business/2025/02/16/real-reason-trump-is-waging-a-global-trade-war/
https://archive.is/iJJes

A PIIE research paper calculated that Trump’s proposals for 10pc blanket tariffs on all goods and 60pc tariffs on China could bring in $225bn a year. However, this does not account for lower economic growth or behavioural change as a result of the tariffs.

“You have a Laffer curve effect. If the tariff rate goes up, the quantities involved go down and you end up not raising much revenue,” says Brooks. “The highest number that I’ve seen that you could possibly raise from tariffs is something like $100bn a year. I think it’s really hard to go much above that without really disrupting global markets.”

The cost of tariffs will also be felt keenly by low-income households in America, who spend a larger proportion of their incomes on physical goods and energy, says Knightley.

“That could be a negative for the economy overall. If he goes too hard on tariffs there is that hit to spending power that could lead to weaker growth.”

Lots and lots more at the link(s).

[Hugin]

1. Since the Laffer Curve is mentioned, I guess they're trying to say that tariffs are like taxes...

The effect of tariffs are the same as taxes on the economy. Except not as effective at being a damper.

[modrepub]

2. Predicting Trump

Is like watching a drunk sailor walk back to his barrack. It’s not a straight path.

I think in the simplest terms Trump/MAGA are reacting to the US trade deficit numbers. They are trying to eliminate it and keep all the money within the border by enacting huge tariffs thinking all manufacturing will come back and everyone will have high paying jobs.

I think they are delusional on how successful this will be. And companies who supported project 2025 are in for a rude awakening. Like it or not we have to trade and function globally.