Whatever the wamkers in the White House say – Trump is U Turning. Firstly a 90 ‘grace’ period and then a exemption for smart phones and computers from tariffs. Is this due to any fool pointing out that the average American workforce does not have the ability to make them. Does the exemption apply to smart phones from China? His upping of the tariff for China smacks of someone with a small cock talking bollocks! The real reason for the backdown was the fall in US Treasury Bonds which the USA government needs to sell to cover its debt (and China is a major owner of them, and a major purchaser!). So Trump fell for the Truss trap of thinking he could out smart the financial markets. The financial world has little time for sentiment or political manspreading. As Truss found out, the markets are not political entities to be manipulated by delusioned psychopaths – they react to events and in the main, facts.
But fuck – we have the orange man baby for at least another 3 years. Will Americans smack him in the face with the mid-terms in 2026? I would not bet on it and could see a polarisation of votes red/blue across the states – they truly need a third party to prevent dictatorships by the deluded. Biden was not great, but also was not Trump! Sometimes we have to taste the bitter to avoid the acid.
The dollar might not be the go to currency for much longer if Trump continues to disregard the markets. The Euro with its many country conglomerate – is never going to be exciting – but may have an appeal for a safe haven for money. The Yuan will have to overcome basic discrimination as being non-white, formerly communist or at least not a democracy as the west interprets it.