We have watched economists on several TV news channels discuss the tariffs. Our previous article just described what those tariffs will do to our standard of living as inflation robs the least wealthy of us of basic necessities. But we wondered why the Trump Administration felt the need for tariffs. The economy had rebounded from COVID much stronger than any other economy of the planet. Inflation was headed for the 2% Federal Reserve target, unemployment was consistently low, gross domestic product was growing, job creation (under Biden) was stellar–so why disrupt the game? Well we think we know the answer.
- Enter Elon Musk, the richest man on earth and a staunch Trump supporter. Musk had funded much of the Trump campaign because he had a number of lucrative contracts with the government and wanted to protect them from cancellation. Trump gladly accepted his support in exchange for Musk becoming the henchman for the “department of government efficiency” firings of experienced Federal employees. But Trump-Musk had a bigger picture in mind. As we know a huge part of Musk’s wealth is based on the success of TESLA cars and trucks. So Trump traded Musk being the wrath agent who ruined everyone’s life with the job terminations in exchange for tariffs on specifically China.
- Let’s set the scene for our readers on the Chinese electric vehicle industry. There are 16 major EV manufacturers in China. All their products have been tested independently and were found to be reliable, efficient and CHEAP-when compared to US EV’s. In fact the most expensive Chinese EV is priced at $21,000 US dollars. 45% of auto sales in China are EV’s. So the EV industry has grown much faster in China than in the US. And China has built charging facilities to keep up with the EV growth. One economist noted “you could double the price (of Chinese EV’s) and pay a 27.5% tariff and still undercut every EV for sale in the US”. We refer you to a website: npr.org/chineseevprices. Another website: greenspeedx.com/cheap-electric-cars-available-in-China asks the question: CHINA MAKES CHEAP ELECTRIC VEHICLES. WHY CAN’T AMERICAN SHOPPERS BUY THEM?”.
- So–if you’re Elon Musk and dependent on selling US made EV’s but you fear Chinese imports will easily run you into bankruptcy court–what would you do? Musk answered that with a trade to Trump. Musk funds the campaign if Trump protects Musk’s Tesla profits from the Chinese with a tariff. BTW, the “npr” report referred to above is probably the reason Trump is pulling the funding from public broadcasting media. THEY’RE TOO HONEST FOR HIS NICKEL”.
- BOTTOM LINE: ALL THIS TARIFF NONSENSE HAS NOTHING TO DO WITH MAKING AMERICA GREAT AGIAIN. IT’S ALL ABOUT MUSK AND TRUMP HELPING EACH OTHER TO YOUR WALLET. TRUMP GETS THE TARIFF MONEY AND MUSK CONTINUES TO PEDDLE HIS OVERPRICED EV’S TO AN UNSUSPECTING PUBLIC–WITHOUT FEAR OF A CHINESE EV INVASION. THAT’S WHAT TRUMP CALLS “TRANSACTIONAL” AND–AS WITH MANY OF HIS TRANSACTIONS–THE AVERAGE AMERICAN IS THE BIG LOSER.
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