This calculation is also quite interesting: Assuming Trump imposes a 60% tariff on Chinese goods, then the total amount of goods imported from China to the U.S. will significantly decrease, and ultimately the tariffs he can collect may be a very small number. Conversely, imposing tariffs while allowing inflation of goods (plus expelling illegal immigrants) will keep inflation rates from falling; interest rates won't decrease, and the interest the U.S. has to pay will far exceed the new revenue from tariffs. So Trump's tariff stick and expulsion of illegal immigrants are likely to hit a wall.
What would I do if I were Trump?
- Reducing government spending is the right thing to do (but it will also be very, very difficult)
- Reduce regulations (I believe this will be achieved)
- Intentionally or unintentionally push the United States into a recession, resetting the overall economy. This would both control inflation and hit foreign competitors like the University of Tokyo. However, pushing into a recession is not a politically wise choice.
- Learn a bit from the University of Tokyo, invest some money in key areas, such as nuclear energy and space technology, but first solve the corruption issue (super hard, impossible 😂)
- The minimum goal is to bring chips back to the United States, similar to TSMC, these must be relocated in large proportions.
That's about it 😄