1. Trump’s (特离谱) All-Out Tariff Strategy
Trump’s “global tariff” plan is not primarily aimed at fixing trade deficits or reshoring manufacturing. It is a geopolitical and financial maneuver to force all countries to bear the cost of U.S. debt—a move to “leverage U.S. market access to coerce foreign cooperation.”
2. The Real Crisis: U.S. Sovereign Debt
As of early 2025: Debt: $36 trillion+
Annual tax revenue: $5 trillion
Annual spending: $6.75 trillion
Debt interest: $1.12 trillion
This creates a dangerous debt spiral: deficit → borrow more → pay more interest → deeper deficit.
3. August 2025 Deadline: The Ticking Bomb
Debt ceiling set at $36.1 trillion.
U.S. Treasury using emergency measures to avoid breaching the cap.
Come August–September 2025, funds will be exhausted unless the cap is raised.
4. Need for $6 Trillion in 2025
To stay afloat in 2025, the U.S. needs to raise:
$3 trillion (for maturing bonds)
$1.12 trillion (for interest)
$2 trillion (budget deficit)
=> Need total of $6 trillion in new debt
The market may not be able to absorb such volume, threatening the collapse of the U.S. Treasury market and dollar credibility.
5. Trump’s Initial Moves
Budget cuts: $2 trillion
Cut foreign aid (e.g., Ukraine), sell immigration “green cards”
Created “Department of Government Efficiency” led by Elon Musk (which failed)
These actions hint at an impending fiscal cliff, and tariffs are just phase one of a larger plan.
6. Conclusion
Tariffs won’t raise $6T before August 2025.
Trump is forcing countries to indirectly pay by buying U.S. debt.
Expect further escalation if countries resist.
The goal: Avoid default, preserve dollar hegemony, and control inflation without expanding the Fed’s balance sheet.
Source: Unknown
More Reading: The Secret Tax