2/28/2026

On the Trump tariffs and the big debt of the US

In response to the The Supreme Court of The USA ruling the reciprocal tariffs by the Trump administration unconstitutional, Trump has withdrawn it. He has declared a new tafiffs of 10% imposed to all countries around the world instead. 

He seems to increase revenue from the tariffs by any means. It is incorrect that such tariffs work in that way but they are only a domestic tax imposed on the US people. Actually, 90% of the the reciprocal tariffs have been proved to be borne by the people themselves but not by the exporting companies. It is a new taxation on the people. 

So far as I understand, it is the enormous amount of government's liabilities in tha US, that is, about 36 trillion USD that they strive to avoid default. They say the government needs to have revenue of 11 trillion USD every year. The deficit is increasing by 2 trillion USD every year as well. Trump would make more military expansion by 150% in the next budget. 

The secretary of the treasury, Bessent, and others in the administration seem to plot increment of the revenue by the following maneuvers;
1) Require the allies investment to the US. 550 billion USD to Eu. 510 billion USD to Japan. 200 billion USD to S. Korea. In the agreement with Japan, the US would take 90% of benefit while Japan only 10% if it makes any benefit. The investment is controlled by Trump.
2) Require Japan import more arms from the US. It amounts up to 910 billion USD in 3 years. Most of the arms are out dated ones.
3) Issue a new virtual currency named Stable Coin. Let certain financial institutions publish it with collateral of US national bond. This is a monetization of bond by the US government.

These measures are told to cover at least 2 trillion USD, that is, the annual deficit of the US government. They would cause more inflation which is beneficial to the US government in order to superficially compress the amount of the debt of the government.

You may ask me why I am interested in such a matter in the US insisting that it is only a domestic financial issue in the US. It still involves us greatly because it aggravates the inflation in our country as well as all over the world. American people may lost the status of key currency and more liable to be affected by inflation as well than ever. Bessent told to refund long term national bond to super long zero coupon. Our ministry of finance, the biggest owner of the US bonds, may not be able to sell them any longer, I am afraid.  If our government obeys the US government to increase the expenditure for arms up to 5% of GDP, it will be around 25% of the annual budget. I am afraid our country coming into the unprecedented aging society won't go sustainable with it.

I am afraid the US may lose credit by the other countries while the US people may suffer a lot from these policies as well.   

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