Who coulda foreseen it? Oh, yeah. Everybody in the world other than the idiot who did it and his weird cult followers working desperately to justify it today. As you might expect, we've got a lot to try and make sense of on today's BradCast. [Audio link to full show follows this very brief summary.]
So, Donald Trump pulled the trigger during his rambling "Liberation Day" remarks in the White House Rose Garden, just after the close of markets on Wednesday. The trade tariffs would be slapped on virtually every country in the world and would be, as one tech investment manager described it just after the announcement, "worse than the worst case scenario."
Today, Wall Street reacted. Poorly. The Dow fell over a cliff by more than 1,600 points. The S&P 500 plunged nearly five percent. The tech-heavy NASDAQ plummeted almost six percent. That's what happens when 54% tariff on China suggest that your next iPhone may soon cost $2,300. (The price of Apple stock crashed by nearly ten percent). In all, today amounted to the biggest nosedive for the markets since the mishandling of the COVID pandemic in 2020...the last time this idiot was in the White House.
Nobel Prize-winning economist Paul Krugman asserted that Trump's numbers announced on Wednesday included "false claims about our trading partners" and simply make no sense, suggesting he's "gone full-on crazy." Though, no matter how many times reality and facts are likely to be pointed out to him --- that we are not, for example, "subsidizing Canada by $200 billion a year" --- he "will never drop that claim."
Trump's made-man and Senior Trade Advisor Pete Navarro, fresh out of prison, defended the tariffs, claiming they will raise $6 trillion in revenue for the U.S. over the next ten years. They won't. But if they did, that would amount to a new 25% tax on American consumers, the largest tax hike in U.S. history, since U.S. consumers, not foreign governments, will be paying higher prices to cover the huge new import taxes on just about everything.
Trump's new taxes are likely to result, as well, in reciprocal tariffs from virtually every nation in the world against the U.S. Every nation in the world, that is, except Russia, which was curiously left off the list of newly sanctioned nations for some odd reason.
But, as our friend David Dayen, investigative financial journalist, author and Executive Editor of The American Prospect explained on this program last year, these tariffs are better seen as a means by which Trump hopes to bend companies, industries and, yes, entire foreign governments, to his will. "Look at these tariff threats more as like sanctions," Dayen told us in early December. "'If you do things we don't like, you're going to get higher tariffs.' That's not really about trade policy. That's really about doing what the United States says. It's really about policing the world through economic terms."
"Businesses are going to come to this President and say, 'Give me a waiver from your tariff.' The mind boggles at the potential for corruption here," Dayen said at the time. "This is what oligarchies look like. This is what Russia looks like. If you're closer to the king, you're going to do better."
"He wants to use tariffs and, more generally, the role of the United States as an economic hegemony, to bully other countries to do our bidding," Dayen foretold, in what now appears to be exactly what Trump is doing. He reiterated and added to some of those thoughts at TAP today. "Stop trying to place coherence on a policy that’s really just a mob boss breaking legs and asking for protection money."
Sen. Chris Murphy (D-CT) smartly explained it in very similar terms last night in a social media thread. "Those trying to understand the tariffs as economic policy are dangerously naive," Murphy argued, citing how "British kings used taxation to reward loyalty and punish dissent. ... The tariffs are a tool to collapse our democracy. A means to compel loyalty from every business that will need to petition Trump for relief."
But there is a way out. There is a way to end this madness. Trump only enjoys the unilateral power to issue economy-killing, job-crushing, 401k-flattening sanctions because Congress gave him that power. They can also take it away. There was an attempt by every Democrat and a handful of Republicans in the U.S. Senate yesterday to do exactly that, when it came to sanctions against Canada. The measure was successfully adopted by the Senate, but is unlikely to receive a vote in the U.S. House, where it would likely also be adopted if members were allowed to vote on it. So, Speaker Mike Johnson will make sure they can't.
With all of that in mind, "these tariffs won't stand," writes Josh Marshall at TPM today. Anyone running for Congress or thinking of doing so has all they now need to take down any Republican who would support this insanity --- and the harm it is now causing to their own constituents. "It’s malpractice for anyone challenging a Republican member of Congress not to be on this today," he detailed this morning.
So, yeah. Once again, it all comes down to democracy and elections. To that end, a Trump-appointed federal judge in Pennsylvania this week ruled in favor of voters, believe it or not. And a George W. Bush-appointed federal judge in Texas did the same thing late last month. We break down both rulings today before Desi Doyen joins us to close with our latest Green News Report, including a bit of bad news for the coal industry, thanks to good news from voters in Illinois this week as, once again, still more evidence that, yes, elections matter!...
(Snail mail support to "Brad Friedman, 7095 Hollywood Blvd., #594 Los Angeles, CA 90028" always welcome too!)
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