Drudge Retort: The Other Side of the News

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Saturday, April 12, 2025

U.S. egg prices increased again last month to reach a new record-high ... read more


The Guardian reporters Matt Berg and Joseph Gedeon write about multiple instances in U.S. federal government where they have outright been told by higher ups that they are being spied on or the employees have been notified of new monitoring software being installed on computers.


The U.S. government has pulled back from its plan to block Nvidia's H20 HGX GPU exports to China, following a meeting between the U.S. President Donald Trump and Nvidia's chief executive Jensen Huang at a $1 million-a-head dinner. read more


Wednesday, April 09, 2025

Trump has inexplicably put a 90-day pause on his inexplicable tariffs. Except for China. read more


Tuesday, April 08, 2025

The United States said on Tuesday that 104% duties on imports from China will take effect shortly after midnight ... read more


Comments

More: The end of U.S. economic leadership. Britain played this role through World War I, but it was too weakened by war to continue. The U.S. didn't take up the leadership mantle until after depression and World War II. U.S. leadership and the decision to spread free trade produced seven decades of mostly rising prosperity at home and abroad. The U.S. share of global GDP has been stable at about 25% for decades, even as industries rise and fall.

That era is now ending, as Mr. Trump adopts a more mercantile vision of trade and U.S. self-interest. The result is likely to be every nation for itself, as countries seek to carve up global markets based not on market efficiency but for political advantage. In the worst case, the world trading system could devolve into beggar-thy-neighbor policies as in the 1930s.

The cost in lost American influence will be considerable. Mr. Trump thinks the lure of the U.S. market and American military power are enough to bend countries to his will. But soft power also matters, and that includes being able to trust America's word as a reliable ally and trading partner. Mr. Trump is shattering that trust as he punishes allies and blows up the USMCA that he negotiated in his first term.

A major opportunity for China. The great irony of Mr. Trump's tariffs is that he justifies them in part as a diplomatic tool against China. Yet in his first term Mr. Trump abandoned the Asia-Pacific trade deal that excluded China. Beijing has since struck its own deal with many of those countries.

Mr. Trump's new tariff onslaught is giving China another opening to use its large market to court American allies. South Korea and Japan are the first targets, but Europe is on China's list. Closer trade ties with China, amid doubts about access to the U.S. market, will make these countries less likely to join the U.S. to impose export controls on technology to China or to ban the next Huawei.

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