Trump’s $60B Tariff Backfire: Japan Abandons U.S. Auto Market | Chaos for American Workers
Trump’s trade war just took a wild turn. This time, Japan is in the crosshairs. And what started as America first is quickly turning into America isolated. April 2nd, Trump drops a tariff bomb. Then hours later pulls a 180 with a 90-day delay. Whiplash much. But one thing’s clear. A 25% tariff on Japanese cars is still looming like a guillotine. Trump tells Fox News that Japan dumps cars into the US but buys none in return. Sounds dramatic, but here’s the truth he ignores. Japanese automakers build millions of cars in America. We’re talking $60 billion in investments. 3.3 million cars made in the US every year. Toyota, Honda, Nissan, they’re not invaders. They are the US auto industry now. Toyota made 1.25 25 million cars in the US in 2023. Honda 970,000. Nissan 770,000. Yet Trump focuses only on the trade deficit, not the jobs or factories they support across the country. So negotiations turn into theater. Japan shows up for serious talks. Trump waves his hand and says, “I’ll send a letter. 25% tariff. That’s not diplomacy. That’s bullying and the damage massive. These tariffs won’t just hit imports, they’ll choke US supply chains. Americanmade Toyotas still need Japanese parts, engines, wiring, transmissions. Slap 25% tariffs on those. And suddenly, US factories are drowning in higher costs. And guess who foots the bill? American consumers. Hybrid and small SUV prices will jump by $4,000. Families already stretched thin won’t buy. They’ll hold on to old gas guzzlers. So much for cutting emissions or promoting EVs. Meanwhile, US automakers can’t fill the gap fast enough. That means fewer choices, higher prices, and the market spiraling out of balance. But while Japan gets squeezed, something wild happens up north. Canada just backed down from its 3% digital tax on tech giants like Google and Amazon. Why Trump? Trump froze trade talks with Canada until they dropped the tax and it worked. But who really won? Big tech? Definitely not American workers. Canadian Prime Minister Mark Carney caved, hoping for a deal by July 21st. Trump’s media crew cheered, but this wasn’t a win for Main Street. It was a golden ticket for Silicon Valley. Google, Meta, Amazon, corporations raking in trillions, paying tax rates lower than the average cafe owner. And now, still untouched, US workers keep paying full price for everything while big tech dances through loopholes. Trump says he’s protecting America, but he’s shielding billionaires, not you. Fair Tax Foundation says that Silicon 6 made $2.5 trillion in profits over the last decade and paid just 18.8% in taxes. The US corporate average is 30%. That’s $150 to $250 billion in lost taxes, enough to rebuild roads, fund schools, or boost healthcare. Canada tried to claim a tiny 3%. Trump said no big tech said thanks. And here’s the twist. If Biden wins or Trump loses steam, Canada might bring that tax back. And next time they might join forces with the EU. That’s right, a digital tax alliance is brewing. Trump may have won the battle, but he just started a much bigger war. One where the US could be the odd one out. And while Trump fights our allies, China quietly makes its move. Remember Canada’s oil? It’s now heading to China, not the US. Canada finished its Trans Mountain pipeline expansion in May 2024. Triple the capacity. And who was first in line to buy? China, not America. China now imports 27,000 barrels per day through that pipeline. Canadian oil exports outside the US surged 60% this year. That’s not just trade, it’s a strategic shift. Trump’s actions push Canada right into China’s arms. While he posts about getting tough, China cashes in. No drama, no effort. Even worse, US refineries need Canadian oil. Our plants are built for it. So, while Trump talks independence, we’re still reliant and now losing leverage. And then came the nuclear option, Trump’s new tariffs on China. 10% 34% now threatening 50% more. Some goods could hit 104% tariffs. That’s insanity. Your $400 iPhone. Try $800. That $20 toy. Now $40. This isn’t pressure. It’s economic self-sabotage. China fired back immediately. 34% tariffs and rare earth restrictions. They control 90% of the world’s supply of key tech metals. Want batteries or radar tech? Get in line. US companies now need a license to buy. And guess what? Most won’t get one. It’s an unofficial ban that could US defense and tech sectors. The fallout, markets collapsed. $700 billion wiped off global indexes in one night. Wall Street, Hong Kong, Shanghai, all nose dive. And we haven’t even hit the bottom yet. This trade war isn’t just between two countries. It’s shaking the entire global economy. What’s Trump’s real goal? Revive US industry, punish China, or just bluff his way through another headline? Because as of now, this isn’t strategy. It’s chaos. It’s isolation. And in the end, it’s American families, workers, and small businesses paying the price. 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President Trump’s 25% tariff threat on Japanese cars has triggered a massive blowback. With Japan now pulling back from the U.S. auto market, over $60 billion in domestic production and thousands of American jobs hang in the balance.
In this video, The Untold Compass uncovers the real damage behind the trade war with Japan. From Toyota, Honda, and Nissan’s deep U.S. manufacturing ties to skyrocketing car prices and fragile supply chains, we expose how this policy could cripple local economies and hurt the American middle class.
Plus, we break down Canada’s shocking retreat from its digital tax after Trump’s pressure—and how it benefits Big Tech, not everyday Americans. Meanwhile, China reaps the rewards of Trump’s chaos, becoming Canada’s top oil buyer thanks to the Trans Mountain expansion.
Is this economic strategy—or self-inflicted sabotage?
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