Thread by @AdamOxsen

Billionaire investor Chamath Palihapitiya’s interview with Andrew Schulz just went viral.

He exposed the truth about Trump’s tariffs:

It's more than a trade war...he's completely redistributing American wealth.

Here are the untold secrets of the President's $750B gamble: 🧵

First, some context on what's really happening.

Trump's tariffs aren't just about punishing China.

They represent the most significant economic reshuffling in modern American history.

This is wealth redistribution on a massive scale - but not in the way most people think.

Why Chamath's perspective matters:

He's built multiple billion-dollar companies and was an early Facebook executive.

He understands global capital flows better than most policy makers.

And he sees something in Trump's tariff plan that most are missing:

"This isn't about a trade war. This is about completely rebuilding American industrial capacity."

Chamath points to a critical fact:

Since 2000, we've lost over 5 million manufacturing jobs.

But there's a deeper story here:

The trade relationship with China has been fundamentally unbalanced for decades.

American products faced steep tariffs in China (often 25%+) while Chinese goods entered the US with minimal barriers (usually under 3%).

This created a one-way flow of manufacturing capacity.

The result?

Our industrial heartland hollowed out. Communities collapsed. The middle class saw their economic security vanish.

All while corporate profits soared to record highs.

The question is: who actually benefited?

According to Chamath, the main beneficiaries weren't the average citizen:

"The way that we set up trade has benefited corporations at the expense of people."

They captured profits by:

Paying minimal taxes, avoiding environmental regulations, and cutting labor costs.

America became reliant on foreign nations for critical goods.

The pandemic exposed this when we couldn't produce basic PPE.
Ukraine revealed our energy dependence.
Taiwan highlighted our semiconductor reliance.

This isn't just economics - it's national security.

Trump's strategy targets three layers:

1. Basic consumer goods (10% tariff)
2. Industrial components (20% tariff)
3. Strategic technologies (25-60% tariffs)

"He's building a carrot and stick approach," Chamath explains. "The stick is tariffs, the carrot is tax breaks."

These tariffs could generate up to $750B annually - enough to offset a significant portion of income taxes for middle-class Americans.

Companies face a choice: pay tariffs or bring production home.

The implications are massive:

"This is a massive wealth redistribution mechanism from corporations back to the middle class."

If companies reshore manufacturing:

• Communities revive
• National security improves
• Supply chains become resilient
• New factories create high-paying jobs

The most fascinating part of Chamath's analysis?

How this transforms global trade alliances.

Trump's approach isn't isolation - it's leverage. Countries aligning with American interests gain preferential trade terms.

Chamath calls this "economic NATO":

"We need an economic NATO as much as we need a military NATO."

Nations cooperating on security, supply chains, and fair trade would form a new bloc.

Creating incentives for countries to side with America.
Those that don't face tariffs.

It's using economic power as leverage.

The challenges are substantial:

• Potential WTO violations
• Short-term inflation as costs rise
• Disruption to global supply chains
• Retaliation from affected countries

But Chamath sees beyond these concerns to the long-term structural realignment.

"The system we built over 30 years has hollowed out the middle class. It wasn't a trade war, it was a trade massacre."

If successful, this creates:

• Middle-class revival
• Balanced global trade
• Stronger national security
• A manufacturing renaissance

This strategy is bold, disruptive, and risky.

As someone with decades in oil, I recognize the pattern. Sometimes you must disrupt systems to create something better.

The status quo wasn't working for everyday Americans.

This $750B gamble might just pay off.

Our economic security is tied to resource independence.

"Energy independence gave America enormous leverage. Manufacturing independence will do the same."

When America became energy independent, we gained geopolitical power.

We witnessed this firsthand:

Energy independence changed everything for America. It freed us to make decisions based on national interest rather than foreign dependency.

The same applies to manufacturing and supply chains.

Countries controlling essential resources control their destiny.

For over 35+ years, our family E&P company has been sending monthly revenue payments to oil & gas owners and investors.

Now I'm sharing everything I've learned about building wealth in energy.

Join 10,000+ investors getting my free weekly insights: theoilpatch.co

Video/Image Credits:
- Youtube: "My fellow Americans, this is Liberation Day. April 2, 2025..." –President Donald J. Trump 🇺🇸🦅 - The White House
- Youtube: Trump's Tariff Gamble EXPLAINED w/
Chamath | Bonus Ep - FLAGRANT
- Getty Images AFP - Brendan Smialowski