[CroFlames]

Originally Posted by opendoor

If you believe what people around Trump have been writing and saying, tariffs (at least the ones on allies) aren't the end game, they're just a means to an end; basically they're a shakedown.

The primary goal is to devalue the US dollar against other currencies, which would theoretically improve the competitiveness of US manufacturers, increase foreign investment in US manufacturing, reduce or eliminate trade deficits, devalue US debt obligations, and allow lower interest rates in the US. At the same time, they would require other countries to commit to financing US debt at low rates by converting US Treasury and cash holdings to long-term low-interest bonds. And to achieve the acquiescence of trading partners in strengthening their own currencies and adjusting their holdings, they use the threat of tariffs and the prospect of reducing security.

The US did a similar thing in the '80s with the Plaza Accord. Unfortunately for them, the world has changed a lot since the 1980s and the chances of them being successful in twisting the arms of the other large economies to take such drastic measures are pretty low. It's more like to simply erode US power and reduce the US dollar's role in the global financial system.

They are unaware of course that no one wants an American made BMW or Mercedes, they buy it because it's German.