Stock Market Speculators Finally Get It Through Their Thick Skulls That Trump Isn't Bluffing About Tariffs

This afternoon U.S. stock markets suddenly nose-dived while Trump was announcing that ruinous 25% tariffs on Mexico and Canada take effect tomorrow. Given Trump's oft-declared love of tariffs, and his use of them in his previous incarnation as president of the U.S., it was idiotic of the blockheads who drive stock prices hither and yon in manic-depressive fashion to have ever doubted him on tariffs.

One thing that needs explaining is why are the corporate bosses whose businesses stand to suffer greatly from the tariffs are so supine and acquiescent about this. The auto manufacturers make much of their car parts- like engines, rather important!- in Canada and Mexico. Their profit margins are below 10%. A 25% tariff means either they LOSE money selling cars, or the number of cars they sell drops by a lot because they have to hike the sale prices.

Then there are the high tariffs on imports from China, which Trump just increased. Many, many goods sold in the U.S., as well as parts for products, are still made in China. You just cannot erase a nation of 1.2 billion people which has developed a huge and extraordinarily diversified manufacturing base, from the U.S. economy.

Trump's fantasy is that the outsourcing of much U.S. manufacturing to cheaper labor sites outside the U.S., a massive movement that has occurred over decades, can be quickly put into reverse and thousands of new factories suddenly open inside the U.S.

It is an example of Trump's de facto dictatorial powers that U.S. corporate sector isn't in rebellion against this. Every other U.S. president has mostly catered to the whims of corporations and big capital. Occasionally they have to do things that displease that sector. Theodore Roosevelt had to break up some trusts. Franklin Roosevelt had to institute a thin social safety net (paid for by workers as well as companies). But there has never been such an assault on corporate interests as what Trump has been doing.

Very inconsistent of the corporations and their media propagandists. They used to scream "Socialist!" at the drop of a hat of any Democratic president proposed anything at all that tilted slightly progressive. But with Trump, it's grovel and kiss his ass.

But hey, that Putin is such an autocrat! All the rich "oligarchs" there tremble and survive only on his sufferance! How UNLIKE the "free and democratic" U.S.A.!