The idiot is trying once again to play tough guy with trade.
Earlier this year, on April 2nd, when Trump placed his massive worldwide tariff scheme on pretty much every country, it took 10 hours for the White House to FRANTICALLY walk back that decision. In the ten hours it was in place, most of the US's foundational economic markets (bond, currency, metals, housing, agriculture) were all cracked. If they hadn't immediately walked back his disastrous tariffs, the country would have nosedived into a depression by that afternoon.
Since then, Trump has waffled on tariffs, imposing them, then walking them back, earning a nickname from Wall Street traders, TACO (Trump Always Chickens Out). Not only that, but Trump has repeatedly made knee-jerk handshake agreements (trade policy must be approved by Congress, NOT the White House), which are disastrous to the United States.
Tariffs on imported products are PAID BY AMERICANS! This means he is placing a tax on products Americans use, to be paid by Americans. The hope he has is that American consumers will cease buying the foreign products, products which, in many cases, are not produced with any major capacity in the United States. As Trump keeps bragging about the amount of money the government is collecting from tariffs, he clearly doesn't seem to care that the money is coming from Americans.
Yesterday, Trump tried a relaunch of his previous disaster tariff policy, but this time he is trying to feel out how many tariffs he can impose without nosediving the markets. He picked 14 countries (Japan, South Korea, Malaysia, Kazakhstan, South Africa, Laos, Myanmar, Bosnia and Herzegovina, Tunisia, Indonesia, Bangladesh, Serbia, Cambodia, and Thailand) and placed tariffs ranging from 25 to 40% on most imported products, and implied even higher tariffs on certain goods. If any country puts reciprocal tariffs on the US, he promised to double them.
Trump doesn't seem to understand a lot about the world and trade. Most of the world HATES him, and so foreign leaders know it will be political suicide to work with him, or to bow down to his wishes. The other problem is that most of the world doesn't want our products, and can't afford to pay for them. If he thinks this will lead to a boon to US exports, he's an even bigger fool than he already is.
He swears he won't back down this time, but really, all the world has to do is stop taking our Ag products, and this country's economy will come crashing down fast. Already, Australia, Argentina, Brazil, and New Zealand have rushed in to supply the Ag product that the world depended on the US for.
This will not end well.
And the US dollar had its worst start to a year since 1973 and the oil crisis.