|
|
|
|
|
by pfannkuchen
394 days ago
|
|
A more generous interpretation might be that he doesn’t expect anyone to retool until things settle down, and he is actually implementing tariffs as a shock tactic to force negotiations starting on strong terms. I haven’t read his book but my understanding is that this is an instantiating of the abstract negotiation pattern he endorses in the art of the deal. The alternative would be to negotiate quietly in back rooms before announcing, which is what is usually done. Would that be less chaotic? Definitely. Would it result in equally good or better trade deals as the shock method? Unclear, it’s not obvious that it would. He also likes dramatic optics. I don’t agree with the guy on most things, but I really think many people mischaracterize him pretty severely. |
|
A sizable "retooling" already took place with Canadian oil. As of last month, Canada is now exporting more oil to China than to the US. US oil exports to China have stopped.[1] This is not projected. This has already happened.
This is a win for China. Getting oil from Canada reduces China's dependence on the Middle East. Getting tankers across the Pacific is a straight run in open water. No bottlenecks at the Straits of Hormutz, no Suez Canal, no war zones.
Expect West Coast gasoline prices to go up.
(Much of this is related to where pipeline are. Pipeline connections to the Western US from Texas barely exist. Meanwhile, in 2024, a major pipeline between the Alberta oil fields and the Vancouver region ports was completed and is in operation.)