When Trump threatened Brazil with punishing tariffs on Wednesday, there was no fancy mathematical equation trotted out this time as justification.
The 50% levy on goods was retribution for a perceived “witch hunt” against his political ally, Jair Bolsanaro, whose supporters attempted a coup two years ago.
This administration is bringing back the law of the jungle to international trade, according to trade expert Kristen Hopewell, and time is running out to salvage the remains of a post-war system of commerce that promoted stability and prosperity across the world.
“Trump is a totally unreliable negotiating partner,” she tells Fortune. “Any deal you strike with the administration is not worth the paper it’s written on.”
The world collectively should just ignore America and move on and let them be their self governing island to themselves.
I’m sure he can make a deal with rocket man later on.
Doesn’t really work for Canada or Mexico.
Sure it does. That’s the way that Canada and Mexico are planning anyways. We just need a bit of runway to unwind generations of trade.
Canada and Mexico can try, but geographically it just doesn’t make any sense. They can (and should) try to reduce their reliance on the US, and try to be in a stronger position for any future negotiations. But, it simply doesn’t make any economic sense to cut out the biggest trading partner, across 2 of the biggest borders in the world.
For Canada in particular, there’s really no alternative. Canada’s entire population is near the US border, and there’s no other country that Canada can trade with without international shipping.
But America brings so much to the table! There’s all the goods manufactured in America, there is all the creativity coming out of the American TV and movie industries, there is all the scientific research and knowledge that is totally not leaving. What about innovative software (licenses) and enshitified streaming services. America is on the cutting edge of defense and it’s partners totally trust that America would never yank away support for those weapons at the whim of a mad king or anything.
Most importantly, how will the world ever get by without the American financial system that contributes nothing to the world and demands all the wealth in return? I think the world will find America hard to shake.
(Massive /s, just in case it’s not obvious.)
The goods are overpriced and undergood. People buy them for clout, not for quality or performance. This has been true for a while now. Unless you’re talking weapons systems.