Trump's day of customs chaos: a warning for his second term

Trump's day of customs chaos: a warning for his second term

There is no plan.

America and the world learned the most frightening lesson over his second term from a week in the impulsive tariff system of Donald Trump, the 47th President of the United States. The fate of the US economy, the jobs and retirement provision of millions of people, as well as global security will be on the brink at all times over the next four years, triggered by the unpredictable moods and unpainted obsessions.

self -inflicted economic collapse

This time it was a self -inflicted economic collapse. Next time it could be a national security crisis. Trump at least partially gave in on Wednesday by announcing withdrawals from customs fees to dozens of countries and areas when the serious economic consequences of his strategy became increasingly clear. But he typically lost his impulsiveness with another escalation - this is how he raised the tariffs to Chinese goods to 125%. While the markets rose after days of losses on a wave of relief, the clash of the two largest economic powers in the world could still plunge the USA into a recession.

chaos and contradictions in the White House

There are several ways to interpret the chaotic Wednesday with its contradictions and the spin of the White House, which causes a new reality to present the president's embarrassing withdrawal as an act of ingenious leadership. One could take the official version of the events for bare coin and assume that an abundance of grateful foreign powers now offers attractive “deals” that will benefit the USA - at its own expense. If this occurs, Trump would have redesigned global trade like no other modern president and caused significant changes for voters.

look at the bond market

or, like the dealers on Wall Street, one could comfort themselves that even Trump, who removed all the reinsing influences from his white house in his second year of office, resigned when the abyss threatened under the US economy. But the focus could be on the bond market. US state bonds are often considered the safest area in the world because they are guaranteed by the largest economy in the world, the almighty dollar and the American loan. However, the latest sale of US state bonds within the last 48 hours has triggered alarm bells in terms of the effects of Trump's tariffs.

The effects on the US economy

In a metaphorical sense, the investors sold the idea that the United States, for a long time the foundation of the global economy, were no longer considered rocks of security. Her dwindling trust illustrates how Trump's volatile style has transformed the United States from a bulwark of stability into one of the most destabilized influences.

The shock wave after the "liberation"

Trump's U-turn was particularly shocking because his closest consultants spent days-since his “liberation day” declaration of the trade wars the previous week-to assert that he would never give in. In fact, the White House had described reports about a 90-day customs break as "fake news", while the stock markets skyrocket on Monday due to rumors. In a roller coaster of events since the announcement of the opposing tariffs, pensioners experienced the agony that their 401 (K) plans are shrunk. Some Americans were released because companies are preparing for a possible recession. But as it turned out, all of this suffering shouldn't have been. Trump leaned after his risky game failed.

a chaos week in Washington

Farcical scenes took place in Washington. The United States Commercial Commissioner, Jamieson Greer, spent a second day with the statement before the congress about what the Trump-White house was a trade "emergency" that had to be traded without example. But during the hearing, he learned about his boss's turnaround, which significantly damaged his credibility for future trade talks. Finance Minister Scott Bessent emerged after a meeting with Trump and emphasized that the customs break was "the plan from the start".

media representation and political intrigue

This crisis could indicate that Bessent - regarded by Wall Street as a safe choice - prevailed against Trump's more violent economic consultants, as the trade consultant Peter Navarro. But shortly after Besseton spoke, the President undermined his finance minister by clarifying that he was improvising again. "The bond market is very delicate. I watched it. But if you look at it now, it looks great. But yes, I saw it last night where people got a little restless," he said.

The game with the economy

Personality cult demand that the great guide, no matter what he does, is praised into heaven, even if he contradicts himself. Bessent praised Trump last week to sign the "Explanation of Economic Independence for the American people". Exactly a week later, when the tariffs were only in force for 12 hours, he praised the president of doing the opposite. "It took great courage - great courage for him to keep out until this moment," Besseter explained to the reporters in the White House. The Republican spin machine was in full swing to preserve the mythology of the art of the deal.

The uncertain future

All eyes are now focusing on China's reaction to another customs high on his imports to the USA - which makes the trade between the two largest economies in the world unsustainable and the markets could burst again. A lesson that China could pull out of chaos on Wednesday is that Trump contested when he was faced with the consequences of his policy. China has already signaled that it is ready to fight "at the end" in the trade war. The credibility of President Xi Jinping and his nationalist project to restore China's respect and influence is now at stake.