On April 2, 2025, President Donald Trump introduced sweeping "Liberation Day" tariffs, imposing a baseline 10% tariff on all imports, with higher rates—up to 54% for countries like China—targeting major trade partners. This move was part of a broader strategy to address what Mr. Trump deemed a national emergency due to a $1.2 trillion trade deficit in 2024. President Trump in viewing the deficit as a major economic and security problem has correctly decided under this Act to invoke his tariff plan. His plan is to try to bring back manufacturing and other types of factors of production to be made in the United States. This plan would in theory create more jobs, more economic stimulation, and more tax revenues for our economy. Additionally, the tariffs are intended as negotiation leverage to open export markets, reflecting Trump's strategy from his first administration.
The issue as President Trump sees it, is the fiscal weakness of America and the sickening dependency on hostile foreign nations that for years have extorted the USA on a whim. The issue and the fiscal wreckage over time has been exacerbated by Democrat and Republican-Globalist debt- driven spending policies that have made the chasm even bigger. Faced with the collapse of the financial system, President Trump stated that the USA needed a painful “operation” to right the ship after years of wreckage, stating that the cure would take some time.
However, what really changes locally as critics and the economic idiocy of the left, abounds. On April 2, Connecticut’s brave Governor, King Ned Lamont the Unaccountable, international economist extraordinaire and the man who with his sycophant legislature has driven Connecticut into the economic gutter, started a new career as a trade war strategist. Declaring "Tariff Day is Tax Day" from a script handed to him, started crying the blues in quadraphonic stereo. But as is always said, consider the source. The Unaccountable, having no economic abilities of his own and heavily tied to his wife’s Annie’s investors and his addiction to the narcotic of free government money, saw his feeble kingdom eroding. So what could you really expect from the "businessman" governor?
Unfortunately, the way things have proceeded is brutal. The United States Trade deficit in 2024 was over $918 billion dollars. A trade deficit occurs when a country's imports exceed its exports. This creates a negative balance of trade for a country. In our economy, we have been running a constant trade deficit since 1976. A tariff is a tax imposed by a government on foreign made goods. Tariffs can be used to protect industries from foreign competition and/or as a source of tax revenue.
Therefore, the official pronouncement came as follows: "President Trump is invoking his authority under the International Emergency Economic Powers Act of 1977 (“IEEPA”) to address the national emergency posed by the large and persistent trade deficit that is driven by the absence of reciprocity in our trade relationships and other harmful policies like currency manipulation and exorbitant value-added taxes (VAT) perpetuated by other countries." (https://www.whitehouse.gov/fact-sheets/2025/04/fact-sheet-president-donald-j-trump-declares-national-emergency-to-increase-our-competitive-edge-protect-our-sovereignty-and-strengthen-our-national-and-economic-security/). For those who remember this Act was enacted by Congress to modify the “Trading with the Enemy Act” that was passed during WWI in 1917. As further stated, this act "grants the President extensive power to regulate a variety of economic transactions during a state of national emergency. Congress enacted IEEPA in 1977 to limit the emergency economic powers that it had delegated to the President under the Trading with the Enemy Act (TWEA)"(https://www.congress.gov/crs-product/R45618).
So, let’s look at the mess that politicians of all stripes have left us in. The biggest trade deficit we have currently is with China. For 2024 the trade deficit was over $295 billion dollars (https://ustr.gov/countries-regions/china-mongolia-taiwan/peoples-republic-china). China is led by Xi Jinping, General Secretary of the Chinese Communist Party. China is not a free country economically, politically, or socially and is the “Gold Standard for governance” for rotting Blue States like Connecticut in the U.S. China is a totalitarian regime ruthless in the elimination of freedom and human rights. Economic mobility is only allowed for Communist Party leaders and their connected individuals. Their economy uses massive governmental subsidies to prop up businesses and industries. For example, China dumped on the United States years ago low-cost ball bearings which created massive issues in the economy. China provides our country many inexpensive, poor-quality items that consumers purchase since they are so cheap. Why do we support an oppressive regime such as China economically by the purchasing of their goods? Those workers producing these goods are not advancing economically nor with advancements of their personal freedoms. Isn't China a military enemy of the United States and of other free countries? It is not logical as to why we are supporting this Communist Party regime to the tune of almost $300 billion dollars a year? And China's tariffs on United States goods have increased over the years. Now, President Trump has forced China's hand as far as the increased tariffs he placed on China imports to our country.
Not much has changed in other places. Vietnam is another country we trade with and is a Communist state ruled by a single party, the Communist Party of Vietnam (“CPV”) led by General Secretary Nguyen PhuTrong, Prime Minister Nguyen Tan Dung, and President Truong Tan Sang, are all dictators in their own right. Vietnam is also not free and commits massive human rights violations. The United States fought a war against Vietnam until 1975 and lost. The United States imports from Vietnam for 2024 were over $142 billion dollars while our exports to Vietnam were just $13 billion dollars. Why are we supporting an oppressive regime such as Vietnam, who we also fought a long war against by the purchasing of their goods? Those workers producing these goods are not advancing economically nor with advancements of their personal freedoms. And why are we are helping a Communist repressive regime at the same time?
The stock market reactions to the Trump tariff plan, has been expected from an economics viewpoint. Many economists look at global trade as a win-win for both countries who are exchanged with the trade. It could certainly be a win-win if tariffs are not used. In some situations, one country "dumps" a product at an extremely low cost onto another country that creates harm to that country by undercutting those domestic companies’ ability to produce the product at a profit to remain in business. China did this to the United States with ball bearings and several other products. But how have we have benefited from the past 50 years of trade deficits in our country? After all isn't the United States National Debt over $36 trillion dollars? How do we benefit as a freedom loving country in supporting economically ruthless Communist regimes such as China and Vietnam through supposed "free trade"? But money will be made on the great Tariff sell off 2025 especially by large financial/hedge/short funds. The retiree who depends on his or her 401K/IRA/457K for retirement income has again been shaken but markets are indeed always cyclical. But while The Unaccountable and his ilk are decrying the “death” to the economy, they are busy picking up “good stuff, cheap” and will sit to the sidelines to become even richer. Because that is the real motivation as to why The Unaccountable remains in office.
President Trump also might offer the following trade agreement to both Canada and Mexico: Drop your tariffs on all the products we ship to you and we will drop all our tariffs on your products. This would create an economic boom in North America and strengthen relationships with both countries. He also might offer a similar agreement with China and Vietnam on the basis that the Communist Party end their rule and allow freedom to their country. These proposals would show perspective, vision, and boldness. Such thinking and qualities are completely bereft upon Ned Lamont and his cadre of Democrat governors and fellow elected officials.
Economic Freedom, Economic Sovereignty and self-sufficiency should be priorities in our country. Sadly, they have been bypassed for many years now by Democrats and globalist Republicans. It was bypassed by many Presidents since President Carter. The buck stopped in 2025. America cannot keep this reckless spectacle of incessant spending and debt. We elect individuals to represent us not appointed unelected judges to make economic decisions for our country. It is time for leadership as far as Trade Deficits and the National Debt is concerned. It is time for action and results do not lie. We do not need any more rhetoric.