The White House has launched a tariff war; what exactly does Trump want to achieve?
Regarding the implementation of this round of tariffs, the market has various interpretations. Personally, I believe the essence is still about how to achieve debt transfer. Other factors, including the return of manufacturing, cannot be realized in the short term, at least not during Trump's presidency.
Currently, the U.S. government dares not print more dollars and can only force countries to devalue their currencies in order to hedge against tariffs by raising tariffs. When all countries' currencies begin to devalue, it creates space for the dollar to depreciate. In the process of the dollar depreciating, it effectively achieves a debt reduction action. After resolving the debt crisis through a weaker dollar, a stronger dollar can be used to reap a new round of global assets.
However, if countries do not take Trump's bait, it will be awkward. The Trump administration cannot last long in that case. Will the future unfold according to Trump's script? We shall see.