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Economy

Here's what Trump is really up to with high-stakes tariff gambit

2025-04-06

[FoxNews] Backed by the Department of Government Efficiency (DOGE) and Elon Musk, the administration is reportedly targeting $4 billion in daily spending cuts. If their recommendations translate to cuts and get ratified by Congress, that could amount to a trillion dollars off the deficit by late 2025.

At this point, we have two pillars: lower borrowing costs and tighter spending. But there remains a third—and arguably most important—pillar: growth.

Tariffs serve as the ignition switch. By making imports more expensive, they create space for American producers to step back in. The objective is not to punish trade partners—it is to make domestic industry viable again, even if only long enough to rebuild critical capacity.

Yes, prices will rise. But the administration is fully aware of that. In fact, it is front-loading the pain now, hoping to deliver visible job growth and factory activity before the November 2026 midterm elections.
Trump economic advisor says market volatility is ’totally expectable’ after Trump tariffs Video

In the meantime, tariffs themselves will generate revenue—an estimated $700 billion or more in the first year. That creates more fiscal room for the administration to enable tax cuts and keep spending on Social Security, Medicaid and other programs.

Where the picture becomes even more interesting is on the geopolitical front.

These tariffs do not exist in a vacuum. They are being deployed alongside a deliberate reshaping of global alliances. The U.S. is quietly distancing itself from NATO
...the North Atlantic Treaty Organization. A collection of multinational and multilingual and multicultural armed forces, all of differing capabilities, working toward a common goal by pulling in different directions...
, recalibrating ties with Europe, and opening previously frozen diplomatic channels with the Gulf nations and Russia.

Why? Because the post-Cold War trade order no longer serves U.S. interests. It enabled deficits, offshoring, and strategic dependency. Now, tariffs become leverage. Allies who align with U.S. priorities receive relief; others face higher costs.

China, naturally, is the central player. For years, economists have argued that its artificially weak currency and industrial overcapacity have distorted global trade. Tariffs are one way to force a reckoning—and potentially, a revaluation of the yuan.

Other countries will not be spared. Europa
Europa

...the land mass occupying the space between the English Channel and the Urals, also known as Moslem Lebensraum...
could be asked for terms on Ukraine. India may be pressured for deep tariff cuts. Canada and Mexico will likely face demands related to fentanyl and border enforcement.

Posted by:Skidmark

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