Trump upside - NOT amateur radio

In my view tariffs are a bad thing.  

What President Trump is trying to do against Canada wins him no friends. The USA is hardly seen as a role model any more by the third world, who will increasingly be attracted to China. Sadly, the Trump administration comes across as power hungry and greedy. These are not values that many in the world see as good.

Although I understand what President Trump is trying to achieve, this reminds me of King Canute trying to control the tides!!

It may encourage USA firms to make parts, e.g. for cars, in the USA, but I struggle to see how they can make them inexpensively, stoking inflation in the USA. Far Eastern manufacturing will always be less expensive unless they use robots thereby reducing US jobs.

One upside is the dollar is now far weaker against the UK pound, making oil (for us) less expensive.

See https://www.bbc.co.uk/news/live/cly412xwz44t .

Tariffs - NOT amateur radio

The USA has already imposed heavy tariffs on Canada, Mexico and China. It is threatening tariffs on the EU and UK. Whilst I can (I think) understand the reasons, my view is this is a blunt tool that can do much damage to the world economy.

Like it or not the world is very interconnected with supply chains that go the world over. Whilst I can see the incentives to keep things local, this will come at a cost. Suppliers nearer to home are likely to have higher labour costs, so things are likely to be more expensive.

The USA may be big enough to cope on its own. Much of the world cannot. 

We may be at the start of a new world order with the USA (for now) forging an isolationist policy, unlike the rest of the world. It will be interesting to see what happens.

Trade tariffs - NOT amateur radio

 Allegedly, the incoming US president wants to impose trade tariffs as soon as he comes into office. The danger is they impose trade tariffs in return and we get a trade war.

In the 21st century a tariff war benefits nobody. We need free trade with everyone playing on a level field. 

One thing is likely to happen is inflation will rise in the USA. Making things in the USA is likely to put up wage costs.

Like it or not, the world is shrinking.