President Trump’s tariffs are about leveling the playing field with the goal of bringing manufacturing back to America. If corporate taxes are low, energy inexpensive and reliable, and the workforce available, that is quite likely to happen. However, there are a lot of other benefits that could come from the tariffs.
On Saturday, The National Pulse reported on some of the possible far-reaching consequences of the tariffs:
The policy pushes toward restoring U.S. industry—steel, autos, manufacturing, and tech—by penalizing foreign-made goods and reducing reliance on market speculation and financial arbitrage.
Significance: If successful, this policy will:
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Reshore U.S. production jobs;
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Encourage foreign direct investment into real industry;
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Lower long-term interest rates to reduce debt costs;
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Shift the economy from financial engineering back to tangible production;
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Realign the value of the U.S. dollar to support exports.
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Buried Lede: Trump’s true economic revolution isn’t just tariffs—it’s a bid to de-financialize the U.S. economy, cut Wall Street’s grip, and refocus on real industrial growth. The bond market, not the trade deficit, may be the real target.
…One of the more important secondary policy goals that the Trump White House likely hopes to achieve is a reduction in the 10-year Treasury Bond yield. While most people focus on the Federal Reserve Bank and its interest rate policy, the yield of long-term government bonds impacts interest rates on types of debt held for longer durations, including mortgages, credit cards, and, most importantly, government debt.
The tariffs are anticipated to push the 10-Year Treasury Bond yield lower, meaning the cost of the federal government’s payments servicing the national debt will be reduced. Notably, the inflationary cycle that set in under the Biden government—and was exacerbated by former President Joe Biden’s reckless spending policies—caused the cost to service the debt to increase dramatically and made it difficult for the government to take on any new debt.
The article concludes:
Conversely, after the tariff effects have subsided in the long term, the Trump White House economic team is likely to pursue policies aimed at weakening the dollar’s value to reduce America’s trade deficit. According to a theory proposed by President Trump’s chief economic advisor, Stephen Miran, weakening the dollar will discourage foreign governments through their central banks from moving assets into the United States. Miran argues this would reduce haven demand, where foreign governments move assets into stable economies to avoid domestic volatility. He contends this causes the dollar to be overvalued and subsequently increases America’s trade deficit.
President Trump ran on a platform pledging to transform the United States economy and put American workers first. The tariffs announced on April 2 are a significant step in fulfilling that promise, though the road to achieving an America-First economy still has many obstacles ahead.
Please follow the link to read the entire article. There is a lot more to putting tariffs in place than is generally being reported.
