Imagine the US gets all their banana's from just one country. Then the US puts a 50% tariff on the country's bananas. While it is true that Americans get hurt because their banana's are 50% more expensive, the country that sells the bananas to the US is also hurt. The bananas being more expensive means they sell less. People lose jobs, banana plantations close down, etc.
This is more or less what the EU is doing right now. They do not want to look weak (would reduce their political capital) so they prepare a stiff package of tariffs for the end of the month. But they are in no rush since Trump is hurting the US economy so good right now that there is no rush to push for retaliatory tariffs. As one EU source stated 'Let him stew'.
The US has a trade deficit with the rest of the world (in total) because it net borrows money. You can only consume what you produce unless you borrow. The US borrows immense amounts on the federal, state, corporate and individual level. That is why the US has a deficit. And the US does of course have full control over how much it borrows.
Well, expecting that kind of altruism would be nice, but that's not reality. Even Canada's Prime Ministers (Trudeau and Carney both) had to appear indignant and put on a substantial performance for the cameras. As Warren Buffet said, tariffs are basically an act of economic warfare, it gets people's blood boiling. For most countries there's a substantial political cost to a leader to not channel the populist anger over this and appearing to just lay down.
A lot of his actions do that. Tax cuts that disproportionately help rich people benefits the rich. Cutting environmental regulations benefits the rich people who own companies who can exploit our natural environment to make more profit. Cutting work safety regulations and labor laws benefits the rich people who own companies that try to save a buck my cutting corners on safety. Drill baby drill benefits the rich people in charge of oil companies. Laying off large sections of the federal government puts a sudden glut of workers looking for jobs on the private market which means they will settle for less pay because there are too many new people looking for jobs all at once, which benefits the rich people in charge of those companies. That crypto meme coin he launched made him a lot of money and lost a lot of money for many more.
I'm skeptical. I'll believe it when I see it.
They knew ahead of time that their actions would cause temporary economic hardship. I wouldn't be surprised if his circle of friends are making out on shorts.
They obviously sell less due to tariffs, so it isn't true that only the Americans are hurting.
Bro he literally lives in a country club that he owns.
I don't know what you read, but until that actually happens that just sounds like someone's copium. I'd love to be proven wrong, though.
The left is not helping matters with their policies? Look up who deported more people in their first term in office, Joe Biden or Donald Trump. Granted there were a lot more people trying to come in because they were trying to escape COVID, but if the reality of the policy were congruent with your characterization of it, there would have been a lot less deportations. However, I would prefer not to discuss policy that is unrelated to what is directly causing the market to crash, as that would be off topic.
How else should we take it? Trump is not interested in helping anyone other than himself, and this is self-evident from what he says and does, and how he says and does it. Why should I believe anything he says? Why should I give him the benefit of the doubt? What has he done to deserve that?
Trump says a lot of things. Why should I believe him? Why should I believe any hum drum rumours about what you've read or heard?
Doesn't matter how you slice that pie, the rich almost always come out of recessions better off than the middle and working classes.
He created a crypto coin with his fucking name on it and rugpulled it. I have no reason to believe he's doing anything for the benefit of anyone other than himself and his reputation.
That's great for people who can refinance and pay their new mortgage rate, but you're not going to be able to refinance your mortgage if you've lost your job because the economy has been torpedoed.
cmon that would require too much common sense!Well they should have thought about that before buying the ADR instead of just purchasing directly on the Chinese market.
The case of Variable Interest Entities of Chinese listed companies
Introductionwww.bscapitalmarkets.com
And:
The tariffs are crashing the market which is pissing a lot of rich people off.
New Balance isnt Nike though, and Nike needs to show growth year on year to their shareholders. This is not going to be pretty for anyone.
What sucks is that millenials like us are already well behind our parents when it comes to paying off student loans, buying houses, and retirement savings. The housing issues post covid actually got really bad because millenials were 10 years late to the party thanks to the great recession and had to fend off Gen Z buyers who were enjoying the post covid salary boom.
Rich people always win , poor people does not care. Middle class always suffers no matter how U.S. economy works.
I don't understand what you're trying to say here.
That's great for people with savings. Understand that there are millions upon millions who do not. People who live paycheck to paycheck with little more than a 401k they put money into. Wonder what the state of those 401ks are now - especially those who entered the labour force over the last couple of years.
I was an idiot. At the time, locked in rates were about 2%-ish if I got in early. By the time I seriously looked into it with my broker, a fixed locked rate already zoomed to 2.9%. My mortgage at the time was 1.2% so I thought I had room to play with. Quickly zoomed past that rate. Damn.
I got a pot of money itching to get in. Like 80% cash or whatever. My current equities have taken a hit of like 25% each. But ballparking some numbers, when I take the plunge I only need it to go up about 6-7% to break even. Or collectively about 5% if the clunkers rebound too.
If you did that, then the state-led sales taxes would probably go away. But yes, things would be more expensive for the average buyer. Not really relevant here though.
Then why is Trump just pissing in the face of all of its Economic allies in addition to China? How does putting a 40% tariff on all imports from the EU help against China?
I don't have a simple answer to this. But applying entirely egregious nonsensical tariffs to every speck of land not within the Continental United States, is fucking stupid. There are many ways to slice a cake beyond just setting fire to it.
They survived with massive stimulus checks being written out by the government. So is that your plan? Tariff every other country in the world to such an extent that its no longer viable for US people/businesses to import goods, and then what? Take out trillions upon trillions of government debt to pay all of the workers that are displaced by completely eviscerated industry?
Yeah, this ain't the way of dealing with that problem chief.
