All economists and financial sector agents are completely disoriented in the face of the tariffs imposed by the Trump administration.
The actions of the Trump administration make no sense from an economic standpoint. The USA, with an extremely low unemployment rate, wanting to reduce the number of immigrants in the country, wants to bring factories back to the country. The question that arises is: who will work in them?
As if this labor dilemma weren't enough, there is also the issue of the country having the global reserve currency and needing to circulate the dollar worldwide through imports.
But what no one takes into consideration is the current geopolitical landscape, with increasingly concerning wars where the threats of escalation to something larger or even global cannot be ignored.
The USA in World War II achieved victory in part due to its industrial capacity, which during the conflict was completely converted into a war machine.
Observing the current situation, it is evident that the largest industrial base in the world is in China, thus in the event of a war, it has a significant advantage over its enemies.
What Americans are trying to do is bring this industrial base back to the USA and reclaim that military advantage.
With the geopolitical world as heated as it currently is, on the brink of a third world war, what the Trump administration seeks with the tariffs is to revive its industrial base and have its production completely within its territory.
It is obvious that Trump will not say this openly and is using the excuse of tariff imbalance as a smokescreen; this way, he does not cause greater panic by stating the real reason.
What do you think of this thought? Leave your opinion in the comments!