SHAWN HAGEDORN: Why dealmaker Trump loves tariffs
President-elect leverages surplus purchasing power advantage when negotiating
12 November 2024 - 05:00
To understand US president-elect Donald Trump’s infatuation with tariffs we must appreciate that the US’s economic clout mostly stems from its surplus purchasing power. Trump is a dealmaker who will leverage this advantage when negotiating with both hostile powers and allies.
Whereas SA needs access to about a third more purchasing power to achieve normal workforce participation, today’s high-growth emerging nations, most notably China, overcame similar challenges by increasing value-added exports — most frequently to the US...
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