Eliminating De Minimis

The Trump trade tariffs are more sophisticated and even more necessary than they might appear at first glance:

So, Canada and Mexico get 25% tariffs, but China only 10%. Why? The secret is in that subsection “(h)” when it talks about de minimis treatment. Essentially, what President Trump is doing is levying a much more massive import tax, and possible confiscation impact on the core source of fentanyl (and other illegal) substances.

Approximately a billion packages are estimated to enter the USA under the cover of the de minimis exemption. This is where the enforcement mechanism of the “External Revenue Service” combines with the tariff approach and the “state of emergency.” President Trump imposed the tariffs under the International Emergency Economic Powers Act, a nearly 50-year law that gives the president sweeping power to impose sanctions after declaring an emergency.

Now the billion packages, mostly from China, Mexico and Canada are going to be subjected to review and interception.

The de minimis loophole comes from back in the 1930s. The idea back then was, say you went on a vacation to Paris, you shouldn’t have to file customs paperwork or pay taxes if you decided to ship some little Eiffel Tower statues to your friends back home. Congress in 2015 then raised the de minimis threshold from $200 to $800. However, the e-commerce world exploded, and Chinese companies began using the de minimis loophole to ship cheap goods (ex. Temu and Shein) into the USA direct to consumers without paying any customs duty.

It was reported last year that the U.S. was on track to receive a billion packages through the de minimis loophole that aren’t taxed and don’t have customs slips saying what they are. Making matters worse, illegal items are slipping through the cracks, including, knockoffs, unsafe items and even chemicals used to make fentanyl. The worst abuser that exploits this de minimis loophole is, by far, China.

President Trump can require a customs and duty declaration stating what is in every package and subsequently collect tariffs and duties.

Put it all together and President Trump is executing an Emergency Act executive order, plus the imposition of a tariff review, and simultaneous interception of de minimis packages previously unchecked as the enforcement mechanism. All executed by the External Revenue Service.

Increasingly, it is becoming obvious how derelict in their duties the various branches of the US federal government have been in their favoring foreign interests over the national interests of the American people. Nationalism is observably and conclusively the moral position vis-a-vis the corrupt globalist ideology that necessitates dishonesty and favors corruption.

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A Desperation Move

Talk about a thumb on the scale. The NBA doesn’t just script game results, it literally moves its players around to its favored franchises. The only reason Luka Dončić is being traded to Los Angeles is because the league’s television ratings are free-falling and league officials know they need a white star in their signature franchise:

Utter disbelief fell across waves of NBA followers as a league-altering trade hit their screens in the hush of the night. Luka Dončić is headed to the Los Angeles Lakers, while Anthony Davis is on his way to the Dallas Mavericks in an unexpected blockbuster days before the NBA’s Feb. 6 trade deadline. ESPN’s Shams Charania first reported the trade which shook the whole league.

In full, the Mavericks sent Dončić, Maxi Kleber and Markieff Morris to the Lakers for Davis, Max Christie and a 2029 first-round pick. The Utah Jazz were also in the deal and received Jalen Hood-Schifino, a 2025 Clippers second-round pick (via the Lakers) and a 2025 Mavericks second-round pick.

The move was so unbelievable, Charania had to ensure the many NBA fans who get his posts straight to their phones that the deal was, in fact, real.

The LA ownership is not that much smarter than every other franchise, it just happens to be a more important team. It’s not an accident that so many of the league’s biggest stars somehow find a way to end up there. The only real surprise here is that it was Dončić who was sent to LA to rescue the league, although perhaps they’re still planning to move Nikola Jokic to Boston and Victor Wembanyama to New York to create a three-way rivalry that might spark sufficient fan interest to get them watching the NBA again.

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Testing the Free Trade Hypothesis

It has long been a mantra of the free trade crowd that both sides lose from a trade war. President Trump has called that mantra into question by launching a trade war with Canada, and likely Mexico and China as well:

Canada will retaliate against President Donald Trump’s new tariffs with 25% levies on a raft of U.S. imports, Prime Minister Justin Trudeau said on Saturday, warning Americans that Trump’s actions would have real consequences for them.

As relations between the long-time allies who share the world’s longest land border reach a new low, Trudeau told a news conference he was slapping tariffs on C$155 billion ($107 billion) of U.S. goods. Those on C$30 billion will take effect on Tuesday, the same day as Trump’s tariffs, and duties on the remaining C$125 billion in 21 days, he said.

Trudeau’s announcement came just hours after Trump ordered 25% tariffs on Canadian and Mexican imports and 10% on goods from China, risking a trade war that economists say could slow global growth and reignite inflation. Trump said he would impose 10% tariff on all energy imports from Canada.

The Canadian leader said tariffs would include American beer, wine and bourbon, as well as fruits and fruit juices, including orange juice from Trump’s home state of Florida. Canada would also target goods including clothing, sports equipment and household appliances.

Trudeau said the coming weeks would be difficult for Canadians but that Americans would also suffer from Trump’s actions. “Tariffs against Canada will put your jobs at risk, potentially shutting down American auto assembly plants and other manufacturing facilities,” Trudeau said, addressing U.S. citizens during a press conference in Ottawa. “They will raise costs for you, including food at the grocery store and gas at the pump.”

Canada is considering non-tariff measures, potentially relating to critical minerals, energy procurement and other partnerships, Trudeau said. The 9,000-km (5,600-mile) U.S.-Canada border handles over $2.5 billion in trade a day, especially in energy and manufacturing, according to Canadian government data from 2023.

In 2023, Canada exported close to C$550 billion worth of goods and services to the U.S., or more than three-fourths of its total exports. Energy accounted for 30% and manufacturing contributed around 15% to exports south of the border. Exports to the U.S. accounts for roughly 17.8% of Canadian gross domestic product and more than 2.4 million jobs in Canada.

Let’s look at the three trade balances:

  • Canada: Canada’s merchandise trade surplus with the U.S. last year was C$100 billion. That equates to 3.2% of Canadian GDP. The U.S., however, enjoys an edge in services trade, mainly related to Canadians flowing over the American border. This impact shrinks the trade surplus to C$85 billion, or 2.8% of Canadian GDP, and $45 billion, or -0.2% of U.S. GDP.
  • China: China had a surplus of $990.6 billion with the US. This accounts for 5.4% of Chinese GDP and -4.4 percent of US GDP.
  • Mexico: Mexico had a surplus of $171.5 billion with the US. This accounts for 9.5% of Mexican GDP and -0.8% of US GDP.

Conclusion: the USA will handily win a trade war with all three countries, which is presumably why President Trump singled them out. The US economy will observably benefit from removing foreign competitors taking sales away from domestic businesses; the GDP cost to the foreign countries is an order of magnitude greater to them because their interaction with the USA is more parasitical than symbiotic.

The maximum direct impact to US GDP would be expected to be +5.4 percent, or a benefit of $1,215 billion to the US economy. The maximum direct impact to the three foreign economies would be expected to be an average of -5.9 percent. So even a trade war that leads to a complete end to all trade between the US and the three countries would be expected to significantly help the US economy and increase US wages, and harm all three foreign economies.

Remember, the theoretical justifications for free trade have always been false and incorrect, as first demonstrated by Ian Fletcher and then conclusively disproved by me. Free trade is absolutely and inherently detrimental to a nation, because its logic of efficiency and optimally pairing labor with capital absolutely requires the complete destruction of families, local communities, and the demographics of the nation itself.

The fact that decades of even partially free trade within and without the US borders has significantly fostered these three negative societal trends isn’t an accident, it is specifically predicted by my theoretical observations and argument in my 2016 book ON THE QUESTION OF FREE TRADE.

Here is the relevant Presidential order. It’s informative to see that instead of cracking down on its illegal fentanyl production and exports, the Canadian government has elected to embrace trade war. The irony here is that the USA is simply attempting to do what China tried, and failed, to do in the Opium Wars.

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The Pointlessness of Posturing

Either a number of people associated with Baen Books are less dialed-in to what is happening on the business side than they believe themselves to be or they desperately need lessons in some of the basics of public relations.

  • PR 101: Never deny anything that you know someone else can prove.
  • PR 102: Never get into a fight with anyone who buys ink by the barrel.

Larry Correia posted a long-winded rant both on his blog and on X regarding the piece, opening with the personal attack, “So I hear certain people are trying to stir up outrage clicks spreading dumb rumors about some publishers again.”

Our article, however, does not contain any speculation, only a reporting of facts that have been verified and direct commentary from several Baen Books authors and employees, as previously noted.

Correia did, however, elaborate that he intends to diversify his book portfolio from Baen Books even further in the coming years. He said, “Here, I’ll even add to the freak out, I’m also going to be doing some pure indy stuff in the future too. Why? Because I can, and I want to see what happens when I do. It has been a long time since I’ve experimented in that, the market has changed a ton since then, and has a lot of potential. I like making money. Me doing an indy project might make money. Go figure.”

Many of Correia’s fans reacted to his rant, voicing support for the author and making odd comments mocking his “career-ending,” responding to everything he said but not any of the information in Fandom Pulse’s article, as Correia obfuscated as to what the topic was at hand.

Former Sad Puppy Sarah A. Hoyt, who was dropped from Baen due to her poor sales and is not an American, replied with a bizarre comment, “Yeah. People asked, so I actually read the idiocy. It’s all a thinly veiled tissue of hallucinations…. Having been the subject of such ‘reporting’ before, I’m not even amused.” It’s unclear what she’s talking about.

It doesn’t take a genius to observe that Baen Books is unlikely to survive the loss of Larry Correia to both a) another publisher and b) going independent. Perhaps some of the people quoted don’t know this, but Baen is 25 percent owned by Tor Books and has a very limited number of distribution slots through its distribution partner. As with most mainstream publishers, it is heavily dependent upon its bestselling author or two propping up the rest of its authors.

This is the problem that Tor Books faces as well. The reason John Scalzi was given a massive lead author contract was because Tor needed to replace Brandon Sanderson, the late Robert Jordan, and the game tie-in business that it lost, unfortunately for Tor and Scalzi, he has been unable to do so. He still sells, he just doesn’t sell well enough.

The fact that Larry Correia walked means that Baen Books couldn’t afford the right of first refusal to his new series, which is hardly surprising. I told Larry back in 2015 that he should go independent and I’ve expected to see him do so ever since Brandon Sanderson demonstrated how high the ceiling can be for an independent author. The fact that he was willing to prop up Baen for nearly ten years longer than he probably should have from a financial perspective is testimony to his loyalty and gratitude to his longtime publisher.

But Baen has been circling the drain for years anyhow, because its business practices are out of date. It ignored the authors it should have been courting – including Nick Cole, Jason Anspach, John C. Wright, JDA, and myself, among others – while also ignoring the advent of crowdfunding and the negative impact of Kindle Unlimited. And now its window of opportunity has closed.

People can preen and posture all they like, but what will be will be. And it’s both foolish and futile to get one’s panties in a bunch over educated observers simply noting what has happened, what is happening, and what is likely to happen. Let bygones be bygones and make hay while the sun is shining; just yesterday one of my more vehement past critics and I achieved mutual understanding on a potential future project with excellent prospects for both of us; whether we follow through on it or not, the mere fact of our discussion is a testimony to the professional approach to these things.

I may not be fond of John Scalzi, just to give one example, but if the man ever decides he wants to do a deluxe edition of Old Man’s War in leather, I’ll not only agree to work with him, I’ll guarantee him that we will make him a higher-quality and more attractive edition than Easton or Folio Society will give him. Because an important part of being professional is learning how to set aside one’s personal predilections.

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From Free Trade to Forced Trade

I sincerely hope this is overheated rhetoric from President Trump, because it strikes me as precisely the sort of attempted bullying from a weak position that has made it clear to the sovereign nations that they are better off not trying to work with or accommodate the USA on the basis of their economic interests:

US President Donald Trump has reiterated his threat to impose 100% tariffs against countries of the BRICS bloc, of which India is a part, if they attempt to replace the US dollar with an alternative currency. “The idea that the BRICS countries are trying to move away from the dollar, while we stand by and watch, is OVER,” Trump said in a post on his social media platform, Truth Social on Friday.

“We are going to require a commitment from these seemingly hostile countries that they will neither create a new BRICS currency, nor back any other currency to replace the mighty US dollar or, they will face 100% tariffs, and should expect to say goodbye to selling into the wonderful US economy,” he stated.

Now, tariffs are to the advantage of the US economy due to its negative balance of trade, so this is certainly the right time to attempt to utilize them in whatever fashion is most advantageous. But risking having the USA off from most of the rest of the world in order to maintain the ability to keep issuing more and more debt is neither advantageous nor wise.

On the positive side, no matter how this plays out, it should nail a wooden stake right through the heart of the free trade charlatans.

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Exit Sandman

Netflix expects us to believe they never intended to do more than two seasons of The Sandman, and that ending the show before Season 3 has nothing to do with anything that anyone might have done, in a bathtub or anywhere else, with anyone.

Netflix’s adaptation of Neil Gaiman‘s “The Sandman” will end with its upcoming second season. “The Sandman” Season 2 has been a long time coming. The first season debuted in August 2022, and it wasn’t renewed at Netflix until November of that year. At that time, Netflix was also hesitant to label it as a second season at all, choosing instead to say it was “a continuation of ‘The Sandman’ world,” and wouldn’t commit to an episode count. Variety has confirmed the second season was intended to be the last prior to filming.

“‘The Sandman’ series has always been focused exclusively on Dream’s story, and back in 2022, when we looked at the remaining Dream material from the comics, we knew we only had enough story for one more season,” “The Sandman” showrunner Allan Heinberg said in a statement to Variety Friday. “We are extremely grateful to Netflix for bringing the team all back together and giving us the time and resources to make a faithful adaptation in a way that we hope will surprise and delight the comics’ loyal readers as well as fans of our show.”

Yes, I’m sure that two seasons was always the plan when adapting a 75-issue epic comic. Anyhow, in honor of Netflix’s totally-not-a-cancellation, Vibe Patrol has released a new remix of Mister Tubcuddle, the Coraline’s Eyes mix, on UATV. Because sometimes you won’t get clean again, no matter how you scrub and scrub.

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Fireball in Philadelphia

Although there was some concern that it might be a missile at first, it appears that a Learjet hit the ground at high speed in Philadelphia

A plane carrying two people has crashed in a residential area of Philadelphia causing chaotic scenes on the ground. The Learjet 55 aircraft departed the Northeast Philadelphia Airport on Friday ecening and been travelling to Springfield-Branson National Airport in Missouri before it lost control shortly after takeoff. The jet was caught on doorbell footage hurtling to the ground before exploding in a large fireball after less than a minute in the air.

The Federal Aviation Administration has confirmed that there were two people onboard the jet. It is unclear if they managed to eject or were able to escape. Police sources told CBS that there were several injuries being reported to them on the ground. It is not yet known whether there have been any fatalities.


Is Blake Lively Playing a Lawyer?

Now, perhaps the courts are even more corrupted than I think, but this attempt to control who the other side uses to conduct their depositions strikes me as completely insane.

Blake Lively wants Justin Baldoni’s powerful celebrity attorney Bryan Freedman barred from taking her deposition, DailyMail.com can reveal.  The actress’s lawyers have told their counterparts representing Baldoni and his production company Wayfarer that they object to veteran litigator Freedman conducting the under-oath grilling.

The shock demand is revealed in a new letter from Baldoni’s team to the New York judge overseeing the It Ends with Us co-stars’ $400million defamation suit. They say the 37-year-old Gossip Girl alum and wife of Hollywood megastar Ryan Reynolds, 48, has no right to dictate who questions her.

‘Specifically, the Lively Parties’ counsel indicated that they object to Bryan J. Freedman personally, taking Ms. Lively’s deposition, based upon unspecified statements made by Mr. Freedman. When asked to elaborate on the grounds for their objection, counsel for the Lively Parties declined to do so.’

It would appear that the Lively Parties’ counsel not only are not powerful celebrity attorneys, but are not even lawyers at all. Everything they file or say doesn’t appear to just be counterproductive, but genuinely crazy.

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Forbes on The Folio Society

A gushing Forbes article on the importance and elegance of deluxe books:

When Joanna Reynolds first became CEO of The Folio Society in 2016, the London-based publishing company known for its beautifully illustrated hardcover editions of classic books had been steadily losing money for a decade and was on the verge of being sold. “It kind of lost its way,” Reynolds, a veteran of Time Life Europe and Reader’s Digest, tells me over Zoom. From its post-war inception in 1947, Folio operated as an annual book club, with members signing up to receive four titles a year. “That model everywhere had kind of died, really,” adds Reynolds. “So we [made] a complete change.”

That 21st century innovation not only required the phasing out of an obsolete business model, but also the expansion of what Folio could publish in terms of genre (i.e. moving into science fiction, fantasy, and children’s content), the number of books it could release a year (from four to between 40 and 50), and how those books were marketed to the public.

Most important, however, is maintaining a brand associated with handcrafted beauty and elegance. Every deluxe edition put out by Folio is made with the intention of having the resultant tome occupy prime real estate on a book lover’s shelf for years to come. Such commitment to visual sophistication attracts acclaimed authors, artists, and even fellow publishers like Marvel Entertainment.

Still, I couldn’t help noticing that the Forbes article left out one rather significant element that one would think would have been both timely and relevant.

Neil Gaiman has been removed from UK agent Casarotto Ramsay & Associates’ client list after the Good Omens writer has faced a string of sexual misconduct allegations over the past six months. The change to Casarotto Ramsay’s client list comes amid a wave of creative partners severing ties with Gaiman and his work. Anansi Boys publisher Dark Horse Comics has dropped the once-celebrated writer, while a UK stage production of Coraline was canceled this week.

The Terry Pratchett Estate has now cut ties to Gaiman as well. Apparently pTerry’s heirs have had their fill of Gaiman attempting to trade on a close friendship that was, at the very least, greatly exaggerated, if not entirely fabricated. A one-time co-writing experience is seldom indicative of being bestest buddies, especially when one of the co-writers a) did most of the work and b) is observably disinclined to ever repeat the experience.

Below is a screenshot of the Folio Society’s website from this very morning, only six months after the beginning of #GaimanGate. The reason all the novels by other authors are on the list of 32 (!) Gaiman-related books is because Folio asked Gaiman to provide their deluxe editions with forewords and introductions, although what a mediocrity like Gaiman could possibly have to say about Gene Wolfe defies belief. Now, doesn’t it seem a little odd that Forbes didn’t even ask Folio about this apparent contradiction between their oft-expressed social justice values and the particular authors they choose to feature?

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