Donald Trump’s “Tariff game” involves using a poker-style bluff on lesser nations with ridiculous tariff increases, which he does not intend to implement, but only to instill fear before negotiations towards a deal in the US’ favor.
Take for example Japan. Trump announced a ridiculously high tariff, which shocked Japan for its deep effects on the Japanese economy. In panic, Japan did not know what to do or how to react. Then, when Trump knew he had Japan under his thumb, he offered a “MASSIVE TRADE DEAL” that Japan could not refuse, offering lower rates in the US’ favor, and less in Japan’s favor. (Source: The Telegraph)
It is like the crafty vendor who ups his price to ridiculously high levels, so that when the buyer asks for a discount, the vendor lowers it to the “right” price commensurate to his real target. Ingenious, right? This is a prevalent vendor-buyer negotiation in Philippine culture.
Trump wanted Japan on its knees, so that the deal will always be in his favor, a position of superiority. It is a high-end psyche-war game, ingenious but risky and may not be workable in the end.
The first reaction of other nations was defiance, like Canada and France. Taking a risk, Trump believed they would eventually change their minds, an effective poker bluff. In a poker game, the more money you have to play with (the US), the more you can easily bluff and have the initiative against lesser players. The player with the biggest purse always has an unfair psychological advantage.
In the case of China, however, it is different. Its economy can match the US. The US position of financial supremacy over China is debatable. In fact, China may have a slight edge in a game of bluff.
China’s response to Trump’s tariff increases was to place higher and more comprehensive tariffs on goods the US needs badly or cannot do without, for example, certain rare earth minerals used in computers. The way the US-China tariff game is evolving, it is an all-out trade war, which is suicidal as THERE ARE NO WINNERS.
Finally, no one can ever trust Trump’s announcements which are sometimes just plain words. He said he had a ceasefire deal with Iran a few days before his B-52s struck. Trump often says something but means another.
The Iran vs US-Israel War — Irony of Ironies
Israel started the war and ended up losing. The US sent the B-52 but destroyed nothing.
They thought Iran was an easy target until Iran fought back, destroying Israel in 12 days. Their intel group MOSSAD had the wrong intel and was massacred, their headquarters in utter ruins. In the blink of an eye, Israel’s invincibility became a myth to the entire Islamic world which used to fear them. This will make the Arabs braver.
They never thought their actions would trigger what they feared the most — the alliance of Iran and China, which may tilt the power balance in Iran’s favor in the Middle East.
The Chosen People thought Yahweh (God) was on their side, not knowing that the genocide of Palestinians angered Him. God used Israel’s ancient biblical enemy, Iran, the former Persia, to punish His Chosen People.
eastwindreplyctr@gmail.com