Written by Pepe Escobar,
Global Majority, celebrate! And hop on board the high-speed rail towards de-dollarization.
The chaos caused by Trump’s Tariff Tizzy (TTT), self-proclaimed as “Liberation Day”, is being widely viewed as Slaughterhouse Day across the globe, from the Global North to the Global South.
This reckless economic strategy begins with the misguided belief that starting a trade war with China is a wise decision. The notion that imposing tariffs will somehow lead to the revitalization of U.S. industries is as absurd as expecting other countries to comply with the Hegemon’s demands.
The farcical image of Trump as a circus ringmaster of turbo-capitalism is as pitiful as the European countries resorting to rearmament to seek revenge, even if it means robbing their citizens’ savings accounts.
Renowned economist Michael Hudson has pinpointed the crux of the issue. Allow me to paraphrase: “Sanctions and threats are the only tools the United States has left. It no longer seeks mutually beneficial agreements, as Trump insists on America being the sole beneficiary in any deal, be it financial or trade-related. Adopting a ‘I win, you lose’ approach does not embody the spirit of negotiation. Trump’s negotiation tactics, as described by Prof. Hudson, involve offering not to harm other countries when the U.S. lacks economic leverage. However, with TTT, Trump is actively harming all nations, prompting them to devise counter-strategies to evade American coercion.
A trade war targeting Asia
TTT is a broad assault, particularly targeting the EU, which Trump views as adversarial due to its trade surplus with the U.S. However, retaliatory measures from the EU are imminent, as indicated by Brussels’ spokesperson, known for supporting European arms manufacturers.
Primarily, TTT is a trade war waged against Asian nations. Non-reciprocal tariffs have been imposed on China (34%), Vietnam (46%), India (26%), Indonesia (32%), Cambodia (49%), Malaysia (24%), South Korea (25%), Thailand (36%), Myanmar (44%), Taiwan (32%), and Japan (24%).
Remarkably, Trump’s actions have fostered collaboration among China, Japan, and South Korea, who have agreed to coordinate their responses. This newfound cooperation is set to enhance supply chain interactions among the three nations.
Trump’s ultimate goal is to establish a mechanism that unilaterally enforces tariffs on any pretext, disregarding international norms and undermining the WTO.
The repercussions of TTT will include inflation in the U.S., financial strain on American corporations, and a tarnished reputation as a reliable trading partner. The Global South is well aware of America’s history of reneging on agreements.
Poetic justice prevails as the Financialization, Insurance, Real Estate (FIRE) Empire, now engulfed by hedge funds and tech giants, self-destructs. For the emerging Global Majority, embrace the shift towards de-dollarization and rejoice in a new era.
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The opinions expressed in this article are solely those of the author and do not necessarily reflect the views of ZeroHedge.
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