Trump’s High-Stakes Tariff Poker Game: A Risky Bet with Global Consequences
ON April 2 – so-called Liberation Day – Donald J Trump decided to join a game of high stakes poker, bankrolled by other people’s money (the US taxpayer), using US tariffs as his ‘Trump card.’
Richard Koch, Elders
His key financial backers, prepared for some risk, saw the magnitude of his bet dawn on them. The bond market reflected this risk with Ten-year Treasury yields increasing significantly, hinting at a potential global financial crisis.
Trump, under pressure, reduced the size of his bet against all nations except China, where the stakes remained high. A series of lost bets on US beef and grain highlighted the consequences of his gamble.
The US beef industry is feeling the impact, with high-value cuts redirected to domestic markets due to trade disruptions. Australian beef exporters stand firm against Trump’s bet, maintaining prices and challenging US importers to adjust.
The impending tariffs will cascade down to the US consumer, increasing prices and affecting grocery bills. Trump has a 90-day window to revise his strategy as analysts assess the impact on company profits.
His poker game against China puts him at a disadvantage, with the market signaling a potential fold. The repercussions of his tariff agenda on the US economy are becoming clearer, prompting reevaluation of his risky moves.
