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I'm not and nobody should like the idea of Trump saying that tariffs are the only thing that has caused USA a lot economically. My simple reasoning comes from his stupidity and fat mouthing about anything. Look what he said recently....
"India is our friend but will Tariff 25%"
"Pakistan will sell oil to India."
"India is a dead economy."
Seriously?
2025 Strength Metrics: India’s Trade Immunity Rising → GDP Rank: #4 globally → Forex Reserves: $702B → Export growth: 8.1% YoY → FTAs: 14 signed, UK done, EU near final
It seems to me it's nothing but Pure frustration of POTUS because India is showing no interest for trade deal, denied that Trump brokered peace, and also objected for his nomination to Nobel Prize. This frustration can also be the result of his inability to usher a peace deal between Ukraine and Russia, which India has nothing to do with though.
So, what's the real cause of his frustration?
A trillion dollar reconstruction opportunity in Ukraine possibly going to Trump's family is yet to be materialised. That's not all. He has also been looking for similar contracts in other war zones like Gaza, Iran and other Asian countries. But none of them getting materialized as of yet. But again India has nothing to do with any of them.
Another big reason for his frustration is that he was looking to enter into businesses in many countries where there is high tariff barrier. He promised this entry to his lobby as soon as he becomes President. Tariff was his way to do so. He sent letter to almost every country. But as of today, no significant tariff deal has been closed.
You can rant about me being wrong because he signed a deal with Pakistan overnight(#1061813). But that's also not for you guys, first there's hardly any oil reserves in Pakistan and secondly China is also sitting there firmly.
He made this deal with Pakistan because it was one of the soft targets for multiple purpose. Everyone knows pakistan is broken economy with scattered leadership but It provided Trump with opportunity to involve in the South East Asia when Pahalgam attack happened.
All the world knew India would do military action against Pakistan. Finding this as an opportunity Trump cracked this deal in exchange of talking to India if conflict escalates.
Although, Modi didn't listen to him while he kept trying. But because he also knew that he couldn't let the deal go away, he instructed Pakistan to directly talk to India and assure/propose a ceasefire, which Pakistan obliged, a ceasefire happened.
Believe me noone in India believes that Trump has mediated the ceasefire between India and Pakistan. It was his own fat mouth that opened on his own social Media because he knew that Pakistan had talked to India and India agreed.
In the parliament Modi specifically denied any world leader's influence citing no conversation between Trump and Modi from April 22 to June 16. If someone may ask for the credibility of his peace brokerage claims, he'd badly fail. To add credibility, he met Asif Munir, lol.
In case who don't know, Asif Munir isn't the head of Pakistan but Trump served him like one..
Anyways, using Pakistan to put pressure on India has been an old strategy of the USA, but to add to Trump's frustration it's not working this time.
He hardly knew that India stands right now as one of the largest consumer markets in the world. Yet He somehow believed that a little arm twisting , blackmailing in the name of tariff or denting Modi's image in public would work in his favour.
Meanwhile India is setting up its chessboard with BIRCS countries. China has been communicated about what they need to do to keep India as long term trading partner. India-China is working on a cautious path of keeping broders peaceful and engage more in trade. China will also agree to India's plan because its Pakistani ROI that's at risk with Trump's entry.
Trump is also miffed by India UK FTA deal and both UK. In fact this deal has actually created lot of domestic pressure on Trump administration. Some of the things India agreed with UK under easy terms, for example automobile sector, for which UK negotiated hard with the US.
Anyways, Trump needs to understand Indian consumer market is pretty big for the US. The fundamentals of Indian economy are not export aligned like China's. India has big domestic market that can consume most of what it produces. What Trump is doing is only igniting a trade war with India which he'll only lose.
Why? Because US importers need India..
  • Apple: 30% of iPhones now made in India
  • Walmart/Gap does 25% textile sourcing
  • U.S. pharma get 50% generics from India
  • U.S. nut farmers' $1B almond exports are at stake
India might not retaliate. It might let U.S. firms pressure Trump for them. And Trump needs to take the second economic lesson..
What's the first economic lesson that Trump has supposedly learned?
It's certainly not this one
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Maybe because Trump attended Wharton School, Pennsylvania which is home for Hazlitt.
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He may need to read it again
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Actually he needs a lot of things to go through before opening up his mouth about other nations, especially the ones that are strategically very important for USA.
By calling India dead economy, he's just lost a possible and very strong strategic partner to hold China back. Now that China already knows that Pakistan isn't its true ally there's a speedy turn towards India.
i dare say because of Trump NATO is getting weaker, and on the other hand BRICS is getting together more than ever.
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NATO has been completely pointless for 30 years. Good riddance
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So, why just he don't get rid of it? It'll be a great reform for the US.
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The president can't unilaterally exit treaties.
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I understand that but he even didn't go for it tells his intentions.
Yikes, that tweet is extremely sophomoric. I don't consider a mic drop at all. And the analogy from Sachs doesn't make a lot of sense to me. A trade deficit is not like credit card debt, in almost any way... I fail to see the analogy at all...
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The analogy is that America prints the money we all use. So they can print endlessly and whatever they print they get to use.
We OTOH just get the inflation & we get to feed Americans because their ancestors invented the monetary & trade system.
So their deficit isn't harmful.
But I'm not so sure about this analogy, what I'm sure about is that India is not a 'Dead Economy' at all.
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Or not, if India doesn't get enough almonds, it will be the end of the nation... That Trump is a fool, but he still gets what he wants...
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