The Art Of The (Raw) Deal

It is generally believed, that the US government is currently waging a trade war, some kind of ideological fintech-firststrike. This couldn't be further from the truth, and the manner by which tariffs are attributed shows as much.

Take Vietnam for example: Historically, ever since the Vietnam War, the Southeast Asian country has proven to be one of America's most valuable allies and trade partners, especially in the growth race against China. Vietnam's population boasts a rare combination of demographic youth and a high standard of education. This isn't typically the case. Additionally, since post-war treaties were established, Vietnam has largely refrained from bowing to Chinese infiltration efforts within their own economy (how exactly those work, for those who don't believe they exist, check out what's been happening in Serbia and their government's relationship with China).

Why then has Vietnam been slapped with a 46% tariff? After all, they're a great ally to have and US/Viet-trade doesn't even operate at a particularly high deficit. The answer is most likely the same as for every other country, though I chose Vietnam as an example, because its situation is uniquely bereft of any other potential explanation. The Republican party is predominantly funded by domestic special interests, whereas the Democratic party tends to defer to international ones. As such, I'm sure there is a kernel of truth to the statement, that they seek to return a manufacturing basis onto US soil. At the end of the day, however, there are just as many - if not more - American corps who thrive on the labour arbitrage enabled through cheap outsourcing. States like Florida, Texas, or Delaware offer special tax benefits to corporations who conduct their banking in-state for that exact reason: work there, pay here, everyone wins.

The primary reason for the tariffs is a much simpler one: Buy Low, Sell High.

A trade war is certainly being waged, albeit not versus China, as evidenced by the fact that exemptions have already been instated on microchips, computech and raw materials, which incidentally constitutes the lion's share of turnover both from as well as to the alleged Asian adversary. No, the real conflict is fought on the homefront, against the USA's own corporate indices. The Republican party's principal backers aren't cowboy-industrialites or red-blooded American steel, it's banks, funds, and holdings. All the shares that are being panic-sold, all the value that is being melted off, these financial interest groups soak them up like vampiric sponges. Whoever captures the most runoff stands to gain the greatest profits, when inevitably the market not only rebounds, but expands on the high of regained freedom.

What they are trying to do is manufacture a post-war miracle. In a way Donald Trump is keeping his campaign promises; just not the ones he made to you.