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Daily news & progressive opinion—funded by the people, not the corporations—delivered straight to your inbox.
Yes, the president is a malignant narcissist and sadist with an insatiable lust for power who gets pleasure out of making others squirm. But there’s something else.
Understand this: The reason Trump has raised tariffs on Canada and Mexico is not to have more bargaining leverage to get better deals for the United States from Canada or from Mexico.
Hours before the Canadian tariffs went into effect, Trump was asked if there was anything Canada could do to stop them. “We’re not looking for a concession,” Trump said, speaking to reporters in the Oval Office on Friday afternoon. “We’ll just see what happens, we’ll see what happens.”
The real reason Trump has raised tariffs on Canada and Mexico is to show the world that he’s willing to harm (smaller) economies even at the cost of harming America’s (very large) economy.
The point is the show — so the world knows it’s dealing with someone who’s willing to mete out big punishments. Trump increases his power by demonstrating he has the power and is willing to use it.
The same with deporting, say, Colombians or Brazilians in military planes, handcuffed and shackled. If, say, Colombia or Brazil complains about their treatment, so much the better. Trump says, without any basis in fact, that they’re criminals. Then he threaten tariffs. If Colombia backs down, Trump has once again demonstrated his power.
Why did Trump stop foreign aid? Not because it’s wasteful. In fact, it helps stabilize the world and reduces the spread of communicable diseases. The real reason Trump stopped foreign aid is he wants to show he can.
Why is he disregarding (or threatening to tear up) treaties and agreements (the Paris Agreement, NATO, whatever)? Not because such treaties and agreements are bad for America. To the contrary, they’re in America’s best interest.
The real reason Trump is tearing up treaties is they tie Trump’s hands and thereby limit his discretion to mete out punishments and rewards.
Don’t think of these as individual “policies.” Think of them together as shows of Trump’s strength.
If Canada or Mexico retaliates, he’ll retaliate against them with even bigger tariffs.
If some senior Republican members of Congress object that he’s stepping on congressional prerogatives, so what? It’s an opportunity to show them who’s boss.
If a federal court temporarily stops him, so what? He’ll go right on doing it and demonstrate that the courts are powerless to stop him.
Look behind what’s happening and you’ll see that Trump is employing two techniques to gain more power than any U.S. president has ever wielded.
The first is to demonstrate that he can mete out huge punishments and rewards.
It doesn’t matter if the punishment or reward is justified. A 25 percent tariff on Canada? Hello?
It’s a show of strength.
If prices skyrocket in America for oil and lumber from Canada or for fruits and vegetables from Mexico, no problem for Trump. Most Americans don’t understand how tariffs work, anyway. Trump will blame Canada and Mexico. And then threaten them with, say, 50 percent tariffs. Kabam!
Which brings us to the second technique Trump is using to expand his power: unpredictability.
What makes an abusive parent or spouse, or an abusive dictator, or Trump, especially terrifying? They’re unpredictable. They lash out in ways that are hard to anticipate.
So, anyone potentially affected by their actions gives them extra-wide berth — vast amounts of obedience in advance.
Trump keeps everyone guessing.
He demands that Denmark sell Greenland to the United States. He chews out the CEO of the Bank of America at Davos for allegedly discriminating against conservatives. He fires independent inspectors general. He purges the Department of Justice of career civil servants who prosecuted cases against him. He attacks birthright citizenship.
What’s next? Who knows? That’s the whole point.
How else to explain the bizarre deference — cowardice — we’re seeing among CEOs, the media, almost all Republican and even some Democratic lawmakers? Presumably, they’re all saying to themselves: “He could do anything, so let’s be especially careful.”
Musk, Bezos, and Zuckerberg kiss his derriere. Bill Gates is “frankly impressed” with him. Jamie Dimon, chief of JPMorganChase, decides he’s “not all wrong.”
Nearly 50 House Democrats support a bill targeting undocumented immigrants charged with nonviolent crimes for deportation. What?
In 1517, Niccolò Machiavelli argued that sometimes it is “a very wise thing to simulate madness” (Discourses on Livy, book 3, chapter 2). In his 1962 book, Thinking About the Unthinkable, futurist Herman Kahn argued that to “look a little crazy” might be an effective way to induce an adversary to stand down.
The “rule of law” is all about predictability. We need predictability to be free.
But much of what Trump is doing is either illegal yet will take months or years before the courts decide so, or is in the gray area of “probably illegal but untested by the courts.” Which suits his strategy just fine.
The media calls it “chaos,” which is how various people and institutions experience it.
The practical consequence is that an increasing number of so-called “leaders” — in the private, public, and nonprofit sectors, and around the world — are telling their boards, overseers, trustees, or legislatures: “We have to give Trump whatever he wants and even try to anticipate his wants, because who knows how he’ll react if we don’t?”
Together, these two techniques — big demonstrations of discretionary power to reward or punish, and wild uncertainty about when or how he’ll do so — expand Trump’s power beyond the point any president has ever pushed power.
Which brings us to the obvious question: Why is Trump so obsessed with enlarging his power?
Hint: It’s not about improving the well-being of average Americans and certainly not about making America great again (whatever that means).
Yes, he’s a malignant narcissist and sadist with an insatiable lust for power who gets pleasure out of making others squirm.
But there’s something else.
The bigger his demonstrable power and the more unpredictably he wields it, the greater his ability to trade some of that power with people with huge amounts of wealth, both in the United States and elsewhere.
I’m referring to America’s billionaires, such as Elon Musk and the 13 other billionaires Trump has installed in his regime, as well as the 744 other billionaires in America, and the 9,850 Americans with at least $100 million in net worth.
Together, these individuals have a huge storehouse of wealth. Many are willing to trade some of it to gain even more, and to tie down what they have more securely.
They give Trump (and his family) business deals, information, campaign money, and positive PR (propaganda). In return, he gives them tax cuts, regulatory rollbacks, and suspensions of antitrust.
I’m also referring to oligarchs in Russia, China, and Saudi Arabia. He gives them special trade deals, energy deals, intelligence deals, access to global deposits of riches; or he threatens to hold them back. In return, they give him (and his family) business deals, information, support in political campaigns, and more covert propaganda.
This is Trump’s game: Huge demonstrations of power that’s wielded unpredictably. They’re eliciting extraordinary deals for Trump and his family, domestically and worldwide.
Trump says he’s doing this for American workers. Nothing could be farther from the truth. He’s doing this for himself and for the world’s oligarchy, which, in turn, is busily siphoning off the wealth of the world.
How to stop this? The first step is to understand it.
"It's 'tariff-ying' and nauseating to watch President Trump and his Republican allies in Congress celebrate as they impose tariffs that will raise costs for the rest of us," one advocate said.
U.S. President Donald Trump signed three executive orders on Saturday following through on his promise to impose 25% tariffs on goods from Mexico and Canada and 10% tariffs on goods from China, a measure that targets the nation's three largest trading partners.
The tariffs are set to go into effect on Tuesday, according toThe Associated Press. The orders contained no language allowing for the negotiation of exceptions; however, Canadian energy products including oil and gas will only face a tariff of 10%.
"Tariffs are an important strategic economic tool, but Trump's desire for a trade war with Canada and Mexico won't protect jobs, keep Americans safe, or bring down costs for families," Sen. Elizabeth Warren (D-Mass.) said on social media in response to the news.
"Instead of using tariffs to protect U.S. jobs, Trump is on an ego trip and is using tariffs to pursue petty fights with other nations while raising prices on Americans."
A White House Fact Sheet announcing the tariffs said that the crossing of undocumented immigrants and illegal drugs—including fentanyl—over the Mexican and Canadian borders "constitutes a national emergency under the International Emergency Economic Powers Act."
"President Trump is taking bold action to hold Mexico, Canada, and China accountable to their promises of halting illegal immigration and stopping poisonous fentanyl and other illegal drugs from flowing into our country," the fact sheet said.
However, it is unclear exactly what actions the targeted countries could take to lift the tariffs.
U.S. voters' frustration with inflation has been cited as an important reason why Trump won the 2024 presidential election. Yet broad tariffs are expected to raise the prices of a variety of goods including Mexican produce, Canadian lumber, and car-making supplies that often cross both borders several times in the construction of a vehicle, according toNBC News. Companies that import goods or supplies will have to decide whether to swallow the costs or pass them on to consumers.
"Small business owners like me are working hard to keep up with high costs, provide for our families, and keep the economy running," Alex Bronson, who owns a construction business in Mount Clemens, Michigan, said in a statement shared by Unrig Our Economy. "But after promising to lower our costs, Republicans seem set to deliver the opposite. Because of these tariffs, we'll be paying higher costs for construction among just about everything else just to help Republicans in Congress and Donald Trump gift bigger and bigger tax breaks to their billionaire friends and big corporations. It leaves us all wondering: Who are our leaders in Washington really working for?"
Warren also warned that the tariffs could give unscrupulous actors the chance to engage in greedflation.
"I'm concerned that Trump will give cover to giant corporations to use his tariffs as an excuse to raise prices on working families—while doling out waivers to his buddies," she wrote. "We will hold him accountable."
Other Democratic lawmakers also spoke out against the tariffs and the way they were imposed.
Rep. Don Beyer (D-Va.) pointed to a new study finding the tariffs would cut into disposable income by approximately $1,250 per household.
"Trump's tariffs are a clear overreach of executive power, misusing authorities never intended for this," Beyer wrote. "The Constitution delegates trade authority to Congress. Trump's abuses of trade powers make it clear that Congress must act to restore the constitutional balance of power."
Rep. Rosa DeLauro (D-Conn.) said, "Instead of developing a comprehensive worker-centered trade policy that will bring jobs back to the U.S., President Trump is using the threat of across-the-board tariffs not on behalf of American workers and consumers but to advance his own extremist policy agenda."
The Peterson Institute for International Economics found in a recent analysis that tariffs would harm the economies of the U.S., Canada, Mexico, and China, but would be "catastrophic" for Mexico and could ironically increase the number of people who would want to cross the border into the U.S.
"Instead of using tariffs to protect U.S. jobs, Trump is on an ego trip and is using tariffs to pursue petty fights with other nations while raising prices on Americans," Congressional Progressive Caucus Chair Greg Casar (D-Texas) said in a statement.
"Everything Trump has done these last few days—from trying to shut down Medicaid to blanket tariffs and sanctions—has all been about helping himself and his billionaire friends. House Republicans will own increased prices for Americans, increased migration driven by sanctions, and an overdose crisis made worse by taking away the addiction treatment and healthcare people need," he said.
Labor and public welfare groups also criticized the tariffs.
"It's 'tariff-ying' and nauseating to watch President Trump and his Republican allies in Congress celebrate as they impose tariffs that will raise costs for the rest of us," Unrig Our Economy spokesperson Kobie Christian said. "Every time Americans pay more when they buy clothes, electronics, or shop at the grocery store, they should remember they're paying for the cost of tax breaks that Republicans in Congress and Donald Trump plan to give to billionaires and corporations. It turns out 'America First' means America's Billionaires First."
President of the United Steelworkers (USU) David McCall said in a statement, "The USW has long called for systemic reform of our broken trade system, but lashing out at key allies like Canada is not the way forward," adding, "These tariffs don't just hurt Canada. They threaten the stability of industries on both sides of the border."
Mexico and Canada have both threatened to retaliate in the case of Trump-imposed tariffs. The executive orders signed by Trump included a provision to respond in the case of retaliation. However, if the countries do retaliate, this could also impact U.S. businesses that sell products in the two countries, such as vehicles; electronics; and agricultural, energy, and industrial products, as NBC explained.
"No one—on either side of the border—wants to see American tariffs on Canadian goods," Canadian Prime Minister Justin Trudeau wrote on social media on Friday. "I met with our Canada-U.S. Council today. We're working hard to prevent these tariffs, but if the United States moves ahead, Canada's ready with a forceful and immediate response."
On Saturday, Trudeau added that he had met with his cabinet and the premiers of Canadian provinces once the tariffs were announced and would speak with Mexican President Claudia Sheinbaum and address the nation later in the day.
Speaking on Friday from Mexico's National Palace, Sheinbaum said her government had a "plan A, a plan B, a plan C, for whatever the United States government decides."
Once the tariffs were announced on Saturday, she wrote on social media: "I instruct the secretary of economy to implement Plan B that we have been working on, which includes tariff and non-tariff measures in defense of Mexico's interests. Nothing by force; everything by reason and right."
If the U.S. is not going to be a reliable trading partner for at least the next four years, and possibly many more years into the future, Europe would be wise to look elsewhere. And there is one obvious elsewhere: China.
One development for 2025 that can be seen clearly in the crystal ball is improving trade ties between China and Europe. The reason this is a virtual certainty is Donald Trump is doing everything he can to convince the world that, under his leadership, the United States is an unreliable trading partner.
He already worked hard to establish this point in his first term when he arbitrarily slapped tariffs on various imports from Canada and the European Union. His ostensible rationale was national defense, but no one outside of Mar-a-Lago could take that one seriously. We worried that we may not be able to get steel from Canada if the US is engaged in a war with another country? Or maybe we’re worried we will be at war with Canada, and they will cut us off.
But Trump is showing that the craziness will get even worse in his second term. Before even taking office Trump made strong demands that Canada and Mexico essentially do things they are already doing (block drug shipments and restrict the flow of immigrants) or he will slap 25 percent taxes on all the goods we import from them.
This is the way Trump has always done business.
This is bizarre from many angles, but most notably because Trump’s proposed import taxes would be a flagrant violation of the trade agreement he negotiated with Mexico and Canada just four and a half years ago. If Trump can just toss into the garbage a trade deal with two of our closest allies — one that he widely trumpeted at the time — then what would be the value of any deal he would strike with European countries? Clearly Trump does not feel bound by his commitments and there is no one in the US political structure who can force Trump to adhere to agreements made by the government, even when it was Trump himself who made the deal.
This is the way Trump has always done business. He routinely reneged on his commitments and often refused to pay contractors after they had done work on his projects. Many contractors would insist on payment in advance from Trump because they knew they would have a tough time collecting after the fact.
If the US is not going to be a reliable trading partner for at least the next four years, and possibly many more years into the future, Europe would be wise to look elsewhere. And there is one obvious elsewhere: China.
China’s economy is in fact already considerably larger than the US economy and growing far more rapidly. This fact is obscured by the tendency in the US media to use exchange rate measures of GDP, rather than purchasing power parity (PPP) measures.
An exchange rate measure simply takes a country’s GDP, measured in its own currency, and then converts it into dollars at the current exchange rate. By contrast, a PPP measure uses a common set of prices to assess the value of all the goods and services produced in each country. This would mean that we apply the same price for a car, a computer, and a haircut, in both the US and China. Economists would usually argue that for most purposes the PPP measure is more useful.
By this measure, China’s economy grew larger than the US economy roughly a decade ago. It is now almost 30 percent larger, and according to I.M.F. projections will be more than 40 percent larger by the end of the decade. It’s not clear why the U.S. media insists on using the exchange rate measure of GDP in reporting that routinely refers to China as the world’s second-largest economy, perhaps it’s just nationalistic chauvinism. In any case, that call reflects political biases not realities in the world.
The larger size of China’s economy makes it a more attractive trading partner in any case, but it is also more likely to stick to its commitments than the United States as long as Donald Trump is in charge. For this reason, we can be fairly certain that Europe will be looking to shore up its trade relations with China as Donald Trump puts on his clown show in Washington and Mar-a-Lago.