The tariffs are designed to forestall insolvency. USA needs to refinance $8T in USTs this year and interest rates are double what they were when most of the bonds maturing were struck. USA faces imminent insolvency as investors quite reasonably shy away from further purchases of long dated USTs and demand a higher coupon on even short term ones. The tariffs seek to address both the the US chronic trade and fiscal deficits. They may succeed by both reducing consumption and increasing government revenue (which should reduce the apparent trend toward runaway debt escalation and increasing doubts over ability to service it) but they may also fail by creating inflation and alienating trading partners and isolating the US economy. A lot hinges on selling $8T+ in USTs before Christmas at reasonable coupon rates.

Desperate times for the declining empire that is the USA.

The mixed economy of China, where the government still controls fiat debt issuance and capital allocation has defeated the crony capitalist west at its own game- capitalism.

Chinas focused and determined mercantile strategy has won the trade war. The next step is to build a Chinese tertiary monetary infrastructure protocol- its name is mBridge and it is now ready to launch- if it does and if the SWIFT-petrodollar trade payments protocol loses this contest for global banking hegemony the US empire is very swiftly insolvent. The Saudis have already signed up to mBridge and BRICS.

The end is nigh?