According to his testament, the first thing that Trump does when he wakes up is read the morning newspaper. Well, an American daily newspaper once said about Trump that he is a deal maker the way lions are carnivores and water is wet. Who would disagree? The businessman wrote a book, “The Art of the Deal.” However, the tariff issue says otherwise.

“The Art of the Deal” was written by Donald Trump and Tony Schwartz. It came out in 1989 when Trump was 43 years old. But even at 43, he was already known as the most enterprising millionaire in America by many people around the world.

Trump writes in this book that he loves making deals. He says that what keeps him going is his love of making deals. Trump of course carried his business skills into the white house. Not a bad thing. That’s why Americans love him.

Remember the slogan “Make America Great Again?” He has one formula for this: tariffs. In fact, tariffs are a tool that President Trump and his team are well-acquainted with. They used them extensively in trade negotiations with China in 2018-2019, and they were successful. 

Trump still carried tariffs to his office for a second time. He also made sure to nominate a team that is pro-tariff. I mean, the whole administration is on board. Even Musk, whose company has been facing backlash causing him to lose billions has not fought it.

However, this time round tariffs almost look like some sort of punishment to both allies and foes. Even the closest trade partners have not escaped. America is being fought by three important trade partners: China, Mexico, and Canada at the same time. Wise? Markets do not think so.

Trump refuses to make deals

Let’s begin with Trump’s biggest foe. China tried to make peace even before the elections were announced. Foreign ministry spokeswoman Mao Ning said, “We will continue to approach and handle China-US relations based on the principles of mutual respect, peaceful coexistence, and win-win cooperation.” 

However, Trump hit China with 10% tariffs and recently another addition of 10% translating to 20% on China’s imports. China announced war but not a straight blow. It shows some strength and could hurt some parts of the US, but it also gives room to talk things out or make things worse if needed.

Foreign ministry spokesperson Lin Jian said, “We advise the US to put away its bullying face and return to the right track of dialogue and cooperation before it is too late.”  China’s government is sending a message that it doesn’t want things to get worse; it wants them to get better. Trump’s office has yet to respond.

Next, Canada and Mexico have been hit with tariffs because of the drugs that come from their country. However, after Trump first said he would put tariffs on goods last month, Justin Trudeau, the prime minister of Canada, said he would name a “fentanyl czar” and label drug gangs as terrorist groups.

Last week, Justin Trudeau came back with receipts saying that Trump’s tariffs were not justified because less than 1% of the fentanyl intercepted at the U.S. border came from Canada.

In addition, Claudia Sheinbaum, the president of Mexico, has also tried to work with the Trump administration. Last month, she sent thousands of her country’s troops to the border to fight drugs. Sheinbaum has been tough on Mexico’s drug gangs; he sent troops to the state of Sinaloa to go after drug crime. Still, Trump hit both nations with tariffs.

Don’t be too desperate to make the deal – “The art of the deal”

In one section of “The Art of the Deal,” Trump describes the concept of dealmaking more directly. He suggests that the worst thing one can possibly do in a deal is seem desperate to make it. Instead, it’s important to have leverage. Leverage is having something the other guy wants. Or better yet, needs. Or, best of all, simply cannot do without.

This kind of explains what Trump is trying to do. However, it still poses the question of how long he will play the hard-to-get game. US businesses are crashing because of the tariffs. 

Manufacturing companies and retailers for a wide array of goods are already feeling the impact. Best Buy CEO Corie Barry said, “International trade is critically important to our business and industry […]The consumer electronics supply chain is highly global, technical, and complex. China and Mexico remain the No. 1 and No. 2 sources for products we sell, respectively.”

Target’s sales and profits went down during the important holiday quarter because customers didn’t spend as much. CEO Brian Cornell said that tariffs and other costs will put “meaningful pressure” on the company’s profits in early 2025.

Automobile companies will also be among the most affected by the tariffs since cars and their parts pass through various border crossings in Canada, the U.S., and Mexico while they are being made. Jim Farley, CEO of Ford, said that the threat of tariffs was causing chaos in the car industry and could be very bad for American automakers. 

Jim Farley said, “Let’s be real honest, long-term, a 25% tariff across the Mexico and Canadian border will blow a hole in the U.S. industry that we have never seen.”

In addition, analysts say that the U.S. economy could lose $109.23 billion every year. Because of this gap, families in the United States would have to pay more for everyday items, which would hurt some states more than others.

Howard Lutnick, the US Secretary of Commerce, said that President Donald Trump is considering a deal that would exempt Canada and Mexico from taxes. This could include carmakers. He said that a rollback might be revealed today. It hasn’t happened yet.

Cryptopolitan Academy: Want to grow your money in 2025? Learn how to do it with DeFi in our upcoming webclass. Save Your Spot

Source: https://www.cryptopolitan.com/trump-is-living-out-book-the-art-of-the-deal/