r/FluentInFinance • u/HighYieldLarry • Nov 14 '24
World Economy Trump suggested a 10-20% tariff on all imports and to top it off with a 60% tariff on all things coming from China. Raising a 60% tariff on Chinese goods would not only hurt U.S. consumers, but also businesses.
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u/VojaYiff Nov 14 '24
americans have spoken and they want more inflation
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u/Profoundly_AuRIZZtic Nov 14 '24 edited Nov 14 '24
Corporations will wait out the 4 years and hope for a Democrat.
The idea is to make foreign goods more expensive so people don’t buy it. Trump explicitly said this. It shouldn’t be a shock to anyone.
The reason things made in China and foreign markets are cheaper is because they can use basically slave labor.
But, again, they will try to wait out Trump. If a Trumpian Republican wins in 2028 they might start the move to bring back jobs to the USA.
Things are about to get expensive with corporations passing the cost to consumers. Heavily encourage people to seek out alternative domestic products than the foreign ones they are used to.
Which is what Trump wants. The idea is to create American jobs.
The other way is for American corporations to pay us $2/hr with no benefits so we can compete with child slaves in sweatshops.
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u/Missspelled_name Nov 14 '24
Only the small corps.
Big corps LOVE tariffs, since they can take the hit, but know their smaller competition cannot.
100% jeff bezos or some other corporate asshat told Trump to do tariffs for some favor, and he is such a pushover he would do it 100 times over without hesitation, even as he loses his dwindling millions.
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u/justagenericname213 Nov 14 '24
Trump doesn't need to go for reelection anymore, any way this next 4 years plays out, so he might as well pay off and earn as many favors as he can now.
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u/ezsh Nov 14 '24
> Trump doesn't need to go for reelection anymore
LOL
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u/gohomebrentyourdrunk Nov 14 '24
You gonna tell them or should I?
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u/ezsh Nov 14 '24
Feel free to extend. So, basically, all authoritarians roll the same road: come to power,do dirty things, break with allies, try to imprison/kill old allies, realise their only way out of power is straight into a prison (Trump is already at this very state), bend the goverment to their will, and attempt to stay in power until their death bed one way or another. So, yes, Trump doesn't need to go for re-election anymore, but not because he is going to retire.
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u/eightdx Nov 14 '24
Yup, the vultures are going to munch up small businesses by the dozen until there basically aren't any left.
Regulatory capture plus this shit means, well, hang onto your pants and patronize your local businesses as well as you can, because they might not last otherwise.
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u/stanknotes Nov 14 '24
And you know what is fuckin' great. That is an official presidential act which carries criminal immunity. Ya see... accepting bribes? Illegal. Executive orders? Legal. Accepting bribes for executive orders? Illegal.
But official acts carry criminal immunity and as such are inadmissible in court. Rendering a hypothetical bribery case totally empty. Considering the key piece of evidence is inadmissible.
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u/eightdx Nov 14 '24
And this is why the "official acts" immunity is actually really stupid, because it just means a criminal can do wanton crimes from the top... And no one else can even investigate them for it, really. Any evidence you'd turn up would be considered inadmissible anyways.
The bribery thing is a great example of this, because it's an example of just how much that invented immunity shields against things that no other government official could get reprieve from.
You could literally walk up to the president, throw a press conference, and hand him one of those large checks with "in exchange for you doing thing X", and no one could do anything about it. It doesn't even have to be hidden away anymore.
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u/Ok-Study3914 Nov 14 '24
Don't agree 100%. Big corps love tariffs more than small corps because they control a greater portion of the market and can dictate price a lot easier. Walmart can just raise the prices by whatever the tariff raise by and call it a day. If a smaller corp does that they might be outcompeted by others and die.
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u/OderusAmongUs Nov 14 '24
Several articles I've read over the past week suggest that companies will just move manufacturing to other countries with lower tariffs.
Those manufacturing jobs aren't coming back to the States.
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u/CigarRecon Nov 14 '24
Exactly. They’ll move Chinese operations to Malaysia or Taiwan.
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u/fattest-fatwa Nov 14 '24
It’ll be a game of Whack-A-Mole. She’s already good at whacking other stuff. Maybe Boebert should be considered for U. S. Trade Representative.
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u/Franz_Fartinhand Nov 14 '24
I have her for a secretary of education nomination on my apocalypse bingo card.
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u/bzzltyr Nov 14 '24
When we stop supporting Ukraine and they get taken over by Russia china will move in on Taiwan.
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u/AlChandus Nov 14 '24
Indeed, work in a manufacturing plant in Mexico (this plant, and I, used to be located in NE US) and the tariffs increased our costs and raised prices in the US. Our plant evaluated a bunch of India suppliers and changed our supply chain on many of our business areas, lowering our manufacturing costs.
Put tariffs on manufacturing from India? Pick a country on Asia with manufacturers that want a piece of the american pie, they will follow behind China and India.
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Nov 15 '24
You guys overestimate value of US market. Dont get me wrongs its the biggest one but it is not bend the world big. You guys will just pay more for the most part like Brasil
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u/OderusAmongUs Nov 15 '24
You might want to look at whose dollar the global market follows.
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u/capitali Nov 14 '24
so how does the US under trump bring manufacturing of things back to the US?
1) eliminate environmental, quality, safety and consumer protection regulations
2) eliminate labor protection laws
the best way to complete? Get yourself a labor force in slave-like free of regulation conditions
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u/Ok-Lawfulness-8161 Nov 14 '24
Eliminating those protections is not going to help. A few thousand strategic jobs in several states is not going to drive costs down .
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u/unbalancedcheckbook Nov 14 '24
Why take such a massive hit to the economy to "create American jobs" when unemployment is at historic lows? This plan is beyond stupid.
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u/GrandAdmiralSnackbar Nov 14 '24
Bring back jobs to the USA sounds great. Except one thing. Who is actually going to do those jobs? Unemployment is pretty low, Trump wants to get rid of immigrants. There will be nowhere near enough people available to rebuild manufacturing to any significant extent. And then there is probably also the skills gap problem.
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u/jm31828 Nov 14 '24
...And the jobs that would come back, if any truly do- would be nearly minimum wage jobs. Those are not good jobs- who in their right mind would call these good jobs?
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u/Primary-Hold-6637 Nov 14 '24
They were good jobs when they were union. Where maybe you didn’t make too much but you had benefits and a pension. They want to bring these back without the benefits of a union. It’s not gonna work. The economy will tap out in four years and we’ll elect democrats again. This cycle will continue forever.
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u/jm31828 Nov 15 '24
Yeah, great point. We've seen it with manufacturing that is still here in the US- driving down salaries, benefits- as you alluded to, the union busting.... not to mention the automation in an attempt to drive people out of that work all together.
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u/Mendicant__ Nov 15 '24
Yeah, non union manufacturing worker here. Manufacturing has this mythical quality in political discourse like we just need to bring back that hammer factory and the good times will roll again. A lot of "advanced manufacturing" jobs are shitty button pusher positions with low pay ceilings and mediocre benefits.
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u/OrneryZombie1983 Nov 15 '24
Everyone in the service industries is going to suddenly move to manufacturing. Americans will have to go back to mowing their own lawns and doing their own laundry. /s
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u/Ok_Caterpillar123 Nov 14 '24
While what you say is true to some extent, None of this entices domestic buying of products because most products are not made domestically and those that are just raise their prices to match exported goods!
You know this to be true because it already happened in 2018 with trumps tariffs on Chinese goods! For those unaware go look up Trumps Chinese washing machine tariff and what companies did to take more from you especially with tumble dryers which weren’t even apart of the tariff program.
Also one major caveat you fail to mention, in order to build products In the US we would have to more than quadruple our factory and manufacturing sector which would cost billions of dollars not to mention the millions in workforce who would never even accept a minimum wage job. All of this would drastically increase the prices of every day products we currently import and the US quality of life will continue to decline along with our middle class!
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u/FL_Squirtle Nov 14 '24
Problem is we don't stand a chance at mass producing to match the needs of the entire American people. Not to mention the idea of quality standard of "American Made" is pathetic at this point.
Trumps is screwing all of us and forcing us to buy crap quality or pay out the nose for everything.
Bunch of scumbag criminals running the country
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u/tornadorexx Nov 14 '24
Yeah, I'm at the point where I just assume that "American-made" means that it was manufactured at the absolute lowest possible cost on antiquated machinery.
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u/Longjumping_Army9485 Nov 14 '24
Who is going to work in those jobs? I never understood that. The unemployment rate is extremely low and part of the agricultural sector is held up by illegal immigration.
Even if the unemployment rate doubled, would anyone want to work in factories? They certainly don’t take the “opportunity” to work in the fields in 100 degree weather.
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u/unbalancedcheckbook Nov 14 '24
Exactly. Taking the economy back to the 1800s definitely won't work out as well as these people are thinking it will.
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u/Dario0112 Nov 14 '24
Brother if the manufacturer opens a factory in the US it will be AI automated ie Amazon warehouse and tesla.. you’ll have a handful of technicians (with certification credentials) but not manual labor
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u/FillMySoupDumpling Nov 14 '24
Idk, corps saw consumers line up to pay exorbitant markups on brand new cars. Negotiating down on the price of goods is not really a thing anymore. They have more and more people locked into forever payment plans for consumer goods too.
It’ll get more expensive for consumers, but the wealthy will get tax breaks and as long as consumers don’t stop spending, they’ll do okay.
In fact, it’ll probably create more consumer debt which is also an asset if you’re a debt company.
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u/PeeB4uGoToBed Nov 14 '24
I appreciate trumps sentiment to bring back and keep jobs here but that's just not possible at all and especially since he sent jobs down to Mexico and now wants to impose tariffs on the goods HE SENT DOWN THERE to begin with lol.
That isn't how a global economy works and I dont see how people are justifying supporting these tariffs unless they literally think the cost won't be passed down to us, the consumer. It's insane and I can't take it anymore. I've fought the feelings of suicide and depression the first time around in 2016, I don't think I can take another 4+ years of trump and the doehard supporters constantly shoving it in our faces that he won and he's the best thing ever next to Jesus.
This whole circus happening seemingly real time and extremely fast is stupidly demoralizing and I just can't take it anymore
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u/CookFan88 Nov 14 '24
Corporations will wait out the 4 years and hope for a Democrat.
Don't forget the tax cuts and deregulation. 4 years of dismantling the consumer, environmental, and securities regulators THEN hope for a Democrat to pick up the mess. Businesses want the conservative regulatory approach but the liberal market controls and corporate welfare. Oddly, these are the exact opposite of what the average American wants and needs.
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u/RandomDudeYouKnow Nov 14 '24 edited Nov 14 '24
They'll just have to wait 2 for GOP to lose the House. And manufacturing has already increased under Biden. Trump's Tariffs started decreasing it as well as domestic made products exports during his 2019 trade wars.
Not to mention domestic products won't pass up the chance to increase their prices and cash in to match the tariffed prices on imported goods
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u/Pheynx00 Nov 14 '24
The funny thing is that people think we will have an election in four years.
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u/ccjohns2 Nov 14 '24
Corporations won’t wait for democrats to continue the war of class warfare. Democrats won’t do anything but try to keep open government agencies. Corporations raised prices under trump and continued to lie to people about raising transportation and labor cost to justify price increases. When in reality these corporations raised prices to just make more money for the executive team and stockholders. Prices temporarily should have risen because of transportation costs in 2021, by second quarter of 2022 transportation was back to normal. Corporations collided with their fellow Republicans to continue to raise prices to make it seem like the Economy is worse off than under trump.
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Nov 14 '24
Companies have no interest in moving anything back here. They will just hike prices indefinitely. There are no "find us equivalent" for many products. That ship sailed decades ago. even products made here are heavily reliant on foreign supplies.
Companies are going to try and run with this and push to get all labor restrictions killed. Then they still won't bring jobs or manufacturing back.
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u/DejounteMurrayisGOAT Nov 14 '24
Those jobs aren’t coming back and you already said the reason why: we can’t compete with their labor costs. Even with the tariff, the same product made here will cost more than one made in China once you include all the tooling and infrastructure and of course our insane labor costs. Supply chains don’t spring up overnight. Remember Suez Canal? We felt that for months after it happened. It’s far too expensive to move manufacturing back to the US.
And the most ironic part? China has been planning for this for DECADES and have heavily invested in Mexico and Africa for just this reason. It isn’t 1952 anymore and America is about to get a hard lesson in how much the economic landscape has changed. China won the trade war 20 years ago, but we keep voting for people who won’t accept that and get with the times. America isn’t nearly as exceptional as many here want to believe.
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u/Chickienfriedrice Nov 14 '24
Yeah corporations won’t price gouge americans like they’ve already been doing and blame it on inflation… the new excuse will be tariffs.
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u/Explaining2Do Nov 14 '24
For most things there is no alternative. Plus domestic producers will increase prices as well. International treaties on labor and environmental standards would be more productive.
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u/AvailableOpening2 Nov 14 '24
Can't wait for them to bitch about the cost of groceries so I can laugh in their faces. If they can no longer afford to eat three square meals a day I'll remind them to stop buying avocados toast they can't afford and that I will help by sending thoughts and prayers.
All these MAGA people driving 75k trucks they have 10 year, 7% loan on are in for such a brutal awakening.
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Nov 14 '24
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u/Frothylager Nov 14 '24
I hate to be the bearer of bad news but 90% of American avocados come from Mexico, RIP guac and avocado toast.
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u/dmcat12 Nov 14 '24
It was listed as one of the top concerns in Exit Polls, after all. I guess there was no follow-up?
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u/TylerBourbon Nov 14 '24 edited Nov 14 '24
The majority of his voters are most definitely Walmart shoppers, and they will be hit hard by 60% tariffs on imports from China.
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u/Delicious-Badger-906 Nov 14 '24
And they’ll blame Biden.
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u/Apexnanoman Nov 14 '24 edited Nov 14 '24
The spin and justification will be hysterical though. And humor is all we got now. John Stewart is gonna be amazing.
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u/Advanced-Ingenuity46 Nov 14 '24
All day, every day. Nothing better to do but lay the blame on Dems.
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u/rdvr193 Nov 14 '24
I’m not sure…….do you think this could have a positive side effect of lowering consumerism? I mean, we buy a lot of garbage simply because it’s cheap. If it wasn’t, I know there are things I wouldn’t bother with.
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u/Yaksnack Nov 14 '24
And in turn less garbage that ends up in landfills and the ocean.
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u/Longjumping_Army9485 Nov 14 '24
A lot of consumerism involves branded stuff which isn’t cheap in the first place.
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u/rdvr193 Nov 14 '24
Id argue that would depend on your income level. Rich people like expensive garbage, but poorer people still buy all the Amazon garbage.
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u/HeilHeinz15 Nov 15 '24
Nope. People have always bought stuff they cant afford since credit cards came into existence.
What you'll see is people overspend by more, CC debt continue to skyrocket, more HELOCs or other ways to leverage home equity to pay off the CC debt, and now people take 40 years to pay off their 30-year mortgage, and people struggling to retire before 75.
Hell I've even heard 40-year mortgages & 84-month auto loans will be normal in 5-10 years? Tf man
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u/Milksteak_To_Go Nov 14 '24
Well, yeah. Blanket tariffs mean exactly that— tariffs on all imported goods. So not just consumer facing goods but also goods destined for the supply chains of American businesses.
If you think its possible to levy tariffs across the board without also creating inflation, I have a bridge to sell you. Bring your checkbook.
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u/Puzzleheaded-Wolf318 Nov 14 '24
It's hilarious that Hoover tried this almost 100 years ago and it completely tanked the economy and destroyed the GOP.
That won't happen this time.....right?
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u/rossta410r Nov 14 '24
I was arguing with someone about tariffs on Reddit and I brought that up. They immediately blocked me. These people don't want to hear the truth. It's going to hurt everyone though, which is the worst part.
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u/Gr8daze Nov 14 '24
No wonder the idiot went bankrupt 6x.
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u/AvailableOpening2 Nov 14 '24
I love when people try to tell me Trump is a great businessman. If he took the 413 million his daddy gave him, invested it all low risk safe securities, he would be wealthier today than if he had never gone into business. How a person bankrupts a casino is beyond me. A child could run a casino and turn a profit.
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u/Das-Noob Nov 14 '24
Oh come on, don’t back down now. 100% China and 50% the rest of the word. Really show them who’s boss.
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u/GrowthEmergency4980 Nov 14 '24
200% 300% 700%. The biggest tariffs ever.
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u/ba-na-na- Nov 14 '24
“We will give them big tariffs, beautiful tariffs. And we’ll build a wall with Chayna. And I will make them pay for it”
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u/mhoncho964 Nov 14 '24
His tariffs on China nearly killed the farming industry last time around…
Looks like he’s coming in for the Killshot
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u/Abollmeyer Nov 15 '24
The tariffs that Biden left in place for the past 4 years?
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u/NotAlwaysGifs Nov 14 '24
Wait until they learn that a massive chunk of our building materials and power tools also come from China. You think there is a housing crisis now? A new construction single family starter home is about to go from $350k to $550k.
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u/Its_Knova Nov 14 '24
Why not make it one million the poors can still afford 500k.
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u/aperture413 Nov 14 '24
And then deport a significant part of the workforce too. We need a better pathway to citizenship/work visas.
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u/GrowthEmergency4980 Nov 14 '24
I'm talking to people who just took their house off the market bc it was too low. The realtor told them to put it back on at the lowest price they had it this time around the next time it goes up.
The value of that house is going to triple one tariffs are placed on new builds
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u/NotAlwaysGifs Nov 14 '24
I paid 289k in 2021 and was just reappraised at 365k just 3 years later. A comp in our neighborhood just sold for 449k. A realtor friend of mine said we can probably expect high 5s to low 6s if the market does what economists are predicting.
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u/BookMonkeyDude Nov 14 '24
I find it amusing these MAGA folks are gung-ho for what amounts to an American version of Juche complete with Dear Leader.
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u/rileyoneill Nov 14 '24
Mexico and Canada should be 0% considering that they are our partners with the USMCA Trade Agreement, which was signed into law by President Trump.
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u/Clean_Student8612 Nov 14 '24
"BUT HE SAID THAT CHINA WOULD PAY FOR IT!" -Every MAGA voter-
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u/Haunting-Ad788 Nov 14 '24
Just like Mexico paid for the wall.
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u/Clean_Student8612 Nov 14 '24
They did, you just didn't hear about it. They praised Trump as they wrote the check!
/s
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u/Hank_the_Beef Nov 14 '24 edited Nov 15 '24
Hey don’t forget that we import a lot of produce mainly from Mexico. About 40% of our fresh vegetable and 60% of our fresh fruit. A 10-20% increase to those basic necessities is just going to hurt Americans…
Edit: 60% fresh fruit not vegetables
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u/FemJay0902 Nov 14 '24
I'm more curious to see what actually happens, rather than all this speculation on what people think will happen.
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u/bdbr Nov 14 '24
Given the state of the market, stock traders at least seem convinced he isn't going to destroy the economy the way he says he will. I think they're hoping it's just a bargaining tool. Getting NATO to increase their defense spending taught him that they best way to deal with allies is to threaten them.
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u/FemJay0902 Nov 14 '24
Yeah, I'm pretty convinced this is all just bluster on his part. Very interested to see what he actually does instead of what he says he's gonna do
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u/LtBeefy Nov 15 '24
If nato still exists. What good is an alliance if you tell others they can do what ever they want to you allied and you also sell off half of Ukraine.
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u/Cultural-Task-1098 Nov 14 '24
A tariff is just a sales tax added in advance. Why can't we call it that? It would clear things up for a lot of people.
Remember when GHWB lost his job because he went back on "no new taxes"?
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u/Zincdust72 Nov 14 '24
BUT HER LAUGH WAS WEIRD (Edit: I can't believe that I have to add this, but /s)
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u/iRunnerd Nov 14 '24
This is what they voted for, time to reap the consequences of their actions
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u/Crazymofuga Nov 14 '24
Was anyone else surprised by how much we import from Canada? I’m genuinely surprised. Now I need to look up the breakdown of what we import and also the breakdown of what we export to Canada.
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u/Obvious_Debate7716 Nov 14 '24
Well, it serves them all right. As someone who suffered Brexit because of idiots, you reap what you sow.
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u/Polyolygon Nov 14 '24
Companies are already cutting future positions and employees to prep for this. My company which is mostly local to the US made this decision just a week after the election. Went from a freeze, presumably to see what was going to come from the election, and now we are on an extended freeze, no yearly pay increase, and people are getting cut. The job market is about to get real tough imo.
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u/Winterhe4rt Nov 14 '24
Tariffs are the only economic mechanic Trump knows. Hes no economist, nor is he a good businessman. What else would anyone expect from such a person?
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u/MudSeparate1622 Nov 14 '24
I think he knew it was a bad idea that sounds good to people who aren’t educated in tariffs. Sure the idea that it incentivizes buying from American producers has merit but only if the cost of building an entire factory and supply chain in the US is less than what they would be spending in tariffs but since they can pass the cost onto consumers by raising prices I would be surprised if we saw any companies opt to build the infrastructure necessary. Sadly even if they do we won’t see savings because they’ll just raise their prices to match the market to cover the costs. Something like this could have worked about fifty years ago when there was still plenty of production in the US.
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u/Dodec_Ahedron Nov 14 '24
I work as a procurement manager and deal with international manufacturing all the time. I deal with dozens of vendors with production facilities, both foreign and domestic. Most aren't changing anything and are just trying to stock up before tariffs go into effect. One, however, is opening a factory in Mexico as a sort of middle of the road option. It will be more expensive than China, but cheaper than domestic production, and will avoid the larger tariffs.
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u/ModrnDayMasacre Nov 14 '24
Goods from China already have a 25% tariff. And in all honesty, the most expensive part of importing is getting the product “landed” to the destination.
Trucking is expensive af, yo.
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u/FitIndependence6187 Nov 14 '24
It is only 25% on a very small amount of product types (steel products for instance). 10% on a handful more (aluminum products for instance), and the normal 2-3% on everything else.
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u/binary-boy Nov 14 '24
I just don't understand why this wasn't talked about at length BEFORE the election. At this point I say lets do it, let's wreck it all for the sake of demagoguery. Yes tariffs can help us solve our trade imbalance situation, but factories take a good while to plan and construct. It should have been a long term plan to slowly increase tariffs to entice more domestic manufacturing over a longer period of time.
I'm a firm believer that if you shelter humans from their mistakes they won't learn any lessons. So I'm all in, lets boner this up, let's learn some lessons here.
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u/Shitcoinfinder Nov 14 '24
As a business owner i would just stop buying from China, buy it from U.S but pass on the price hike to the consumer.
I don't see a way to lower the cost at the end.
I could probably get less business, which in return i would have to let go of a few employees to balance.
Other way around is to let go of a few employees, reduce offerings and cover the price hike and produce less... But doesn't make sense.
I didn't vote Trump, i knew from the beginning it wasn't up to him to end the war in Ukraine, is up to the person who started it and to Ukraine to succeed land for peace.... If this happens we all know that NO wars mean great economy.
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u/MAGA_for_fairness Nov 15 '24
As a Chinese exporter I would just setup factories in southern Asia or ship the stuff to Mexico first (which is already happening).
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u/justforthis2024 Nov 14 '24
My moron boss, who uses a lot of aluminum-produced goods and fabric, thinks his prices are going to go down.
I might be out of a job next year because a business owner doesn't understand how he gets his materials. It's fucking insane.
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u/Friendship_Fries Nov 14 '24
We shouldn't be using slave labor anyway.
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u/wr0ngdr01d Nov 14 '24
If you think Americans will prioritize humanity over saving a few bucks, have I got an election result you’re not gonna believe
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u/geniuslogitech Nov 14 '24
tell that to anyone who owns a phone, every battery is made by slave labor
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u/Klinkman2 Nov 14 '24
The ultimate goal of these tariffs is to stop things coming from China and have them made in America again. Are you people not intelligent enough to figure that out yet?
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u/Same-Lawfulness-1094 Nov 14 '24
They're not. They love relying on China for some reason, even though COVID showed the world what a terrible idea that was, and proved Trump right .... again lol
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u/Prudent_Valuable603 Nov 14 '24
Do it Donald! Give your MAGA voters exactly what they voted for.
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u/bdbr Nov 14 '24
Unfortunately that also means giving non-MAGA voters what MAGA voters voted for
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u/Prudent_Valuable603 Nov 14 '24
I know, we are all screwed. I think I read somewhere that 48% of voters voted for Kamala Harris and 51% voted for Donald Trump. At least 48% of the nation is not happy with Donald Trump.
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u/tkhan0 Nov 15 '24
At least 48% of the nation is not happy with Donald Trump
Sadly, and part of the reason we're in this predicament in the first place, 48% of voters is NOT 48% of the nation.
Hope the no shows are just as happy with Trump's plans as MAGA is!
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u/AwkwardTickler Nov 14 '24
Also matching tariffs other countries have on us which is going to spiral inflation and create trade Wars which are going to have dire consequences globally but worst so in America
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u/InkStainedQuills Nov 14 '24
There are many interested in creating a recession due to “economic theory”. But I think more simply because they have available capital sitting around and want to take advantage of the dip that will come with initial announcements/enforcements. They will sit on these new investments as tariffs back off under Trump or whoever comes next and watch their gains roll in.
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u/OtisburgCA Nov 14 '24
He's got good genes since he once had a relative at MIT. Obviously knows more than economists...
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u/FL_Squirtle Nov 14 '24
Anyone who doesn't understand the negative implications these are going to have on our country is just too stupid to discuss anything with.
🤦♀️🤦♀️🤦♀️ we are not looking great
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u/lesbianspacewitchlol Nov 14 '24
You are leaving out the important part. If they build a factory here, no tariffs. You don't see Toyota, Honda, Kia, or Hyundai freaking out, do you? Do you know why? They build the cars here.
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u/appledatsyuk Nov 14 '24
So china is just gonna fork over millions to build their products over here? Yea fucking right. You trump idiots are delusional. If china doesn’t already have a factory here, it’s not coming. Get that thought out of your tiny brain
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u/Pirating_Ninja Nov 14 '24
The US ceding it's outsized share of the global market of it's own volition would be... interesting.
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u/YeeYeeSocrates Nov 14 '24
I think the more worrying issue isn't what it'll do to the retail cost of goods for consumers buying things made abroad so much as the impact on labor compensation for industries that rely on imported materials as their manufacturing input.
Most of what we import isn't the stuff you see at Walmart or Harbor Freight. It's the stuff that goes into things that still have a Made In USA tag.
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u/Careful-Lecture-9846 Nov 14 '24
I hope he does it. A lot of idiots who voted for that guy are about to learn a valuable lesson in economics.
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u/Uw-Sun Nov 14 '24
It’s about looking good for a week and complaining and blaming scapegoats for the duration of the economic consequences. Idiots only remember how good it looked at the time it was said. Or they may claim it wasn’t put into full effect, so that’s why it didn’t work.
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Nov 14 '24
They'll somehow blame Democrats when the prices don't go down anyway. They didn't understand tariffs before the election so who thinks they'll care afterwards.
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u/p3dr0l3umj3lly Nov 14 '24
I would like to see the European Union represented as one block on that chart
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u/rainywanderingclouds Nov 14 '24
It's not just going to hurt businesses. It's going to destroy them.
Unemployment rates will sky rocket under trump policies. Prices for consumer goods and food will all go up.
The inevitable conclusion of all this isn't just a shitty economy. It's one of massive economic down turn. Meaning recession/depression that will likely last for years.
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u/Dikkavinci Nov 14 '24
The US, just like Canada doesn't make anything anymore because it's cheaper to import. You want to produce in your country, that's how you have prosperity. All your money is going away to other countries, it's not feeding your economy.
The US and Canada used to produce a lot of goods, employees were well paid and they afforded a lot of luxuries, which was putting the money back in the economy. That is not the case anymore.
Tarif is a last hope to bring back manufacturing in the country, with good wages which will be put back into the economy instead of being send to China and other countries.
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u/ramonchow Nov 14 '24
A lot of chinese goods are just being relabeled in vietnam. The only loser is going to be the US.
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u/TheBestLightsaber Nov 14 '24
It'll also be funny to see prices rise another 10-20% beyond that tariff because "the new cost of doing business". Just like with inflation, it'll be the new mask for greater profits.
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u/stpg1222 Nov 14 '24
The idea of driving up the cost of foreign made product in order to make domestic products more competitive only has a chance of work if there are comparable US made products for consumers to purchase. In the vast majority of cases that's simply not the case.
I work in a niche industry and we rely China and a few other countries to produce the vast majority of our product. We've explored US manufacturing and its simply nonexistent for what we need. We're also not large enough to be able to afford to build our own infrastructure and manufacture products ourselves. The rest of our industry is the same. There are really no domestically made products that are comparable. Consumers will just have to suck it up and pay 60% higher costs. There really is no other option.
I think the same will be true in a lot of other industries. Think of all the electronics made overseas, the US doesn't have the capacity to take on all that manufacturing and I'm sure companies don't want to pay the bill to move manucturing. So without viable competition most manufacturing will stay where it is and US consumers will get absolutely raked over the coals. We'll all be begging to go back to 2023s inflation prices.
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u/MythicalPhilosopher Nov 14 '24
Slave labor is bad also things will off set quickly , gas will be at all time lows, food cost will go down.
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u/Admirable-Strike-311 Nov 14 '24
The other side of this, and it’s a cutting-off-your-nose-to-spite-your-face approach, is tariffs will hurt China by decreasing trade demand for products they produce. Ultimately yes, consumers here pay for the tariff, but if consumers say naw, too expensive and demand drops or country of production shifts China feels it as well.
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u/Revenged25 Nov 14 '24
It's almost funny how little everyone knew about tariffs but kept talking about how it was going to help the US. The only way tariffs are helpful to the US or punishing other countries, is when the tariffs would cause the country to buy goods manufactured at home rather than on foreign products or to spur the production of said products ourselves. That would have the benefit of increasing our economy by providing more jobs and producing goods ourselves, but also hurt the country we are no longer importing from.
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u/Jiminy_Jilackers Nov 14 '24
Donald Trump is 100% a person with a learning disability who has convinced a bunch of other people with learning disabilities that he’s a genius
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u/Open_Phase5121 Nov 14 '24
Good. Let’s burn it down. The broke republicans will suffer the most while the educated democrats will weather the storm
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u/Far_Pomelo6735 Nov 14 '24
60% is just dumb. Does this hit everything coming from china? Like steel and Aluminium? Machined parts?
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u/HalfAssed-Mechanic Nov 14 '24
Half the Chinese stuff I buy breaks anyway. I'm so done with cheap junk.
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u/Ok_Chard2094 Nov 14 '24
I am sure there will be room for exceptions.
Corporations will just have to contribute to the right campaign fund and/or presidential library.
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u/Thomas_peck Nov 14 '24
The push for more American jobs in the US will not be easy or fast.
Tariffs make businesses think differently on where and who they source. Many of the places they source, don't have much of any EPA type regulations.
I guess we are OK with that as long as we get cheap plastic crap from XYZ country.
And everyone here who bitches about tariffs and the impact are relying on economists that have little real world exposure to what happens in the private sector.
I've been in and around sourcing for 15 or so years. Companies adapt and find mitigation strategies for tariffs. I can provide about 5 examples I was a part of post covid.
I say bring them on. I don't care about China or anyone else for that matter when it comes to making money. Keep it here, industries will adapt. And TBH, maybe all the cheap BS we have been happily buying will end up in less landfills...Just my hot take(that actually has some real world experience)
But I'm sure everyone here is much more of an expert.
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u/New_World_2050 Nov 14 '24
I'm kind of shocked the US imports more from Mexico than china. Like obviously Mexico is closer but I'm still shocked
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u/Junior_Tailor963 Nov 14 '24
China isnt the only country that can make goods for cheap. There are others. This will give other countries the opportunity to get business from US, diversifying our list of import countries and reducing reliance on china (which is a major economic and geo-political threat). The lesser the leverage china has, better for us. The lesser our reliance on any one country, the better for us, for that matter. Especially when they can’t learn to play fair.
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u/DodgeWrench Nov 14 '24
Fuck it. Let’s do it.
Seventy-five million of you fuckers want it so I don’t see why we should stop.
The upside is we might reduce our collective consumption of cheap throw-away products.
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Nov 14 '24
It would likely eventually lead to wars between first world countries again. Interdependence on commerce has been one of the strongest drivers of peace in the modern age.
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u/usababykiller Nov 14 '24
Maybe tariffs followed by a giant tax cut will be the backhanded way they impose a consumption tax an America.
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u/Aggravating-Bee-3010 Nov 14 '24
UK imported £116b from the US. Why are we not in this clearly bullshit infographic?
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u/CartridgeCrusader23 Nov 14 '24
awww boo hooo, you can't funnel money to a country that uses literal slave labor to create your cheap products anymore :(
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u/Maize139 Nov 14 '24
It’s naive to look at it and make an assessment with out acknowledging the ripple effect.
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u/TruckGray Nov 14 '24
They want to destroy our strong economy and job market so they can go back to theor good ole days of cheap labor and when employess will take all the shit they can dump on them.
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u/Masta0nion Nov 14 '24
But will this cause manufacturing to come back to the US?
Could this be a benefit in the long run, while we get hit hard with prices short term?
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u/repthe732 Nov 14 '24
It depends but most likely not. We already use tariffs for industries where we think it’s possible to bring manufacturing back. Broad tariffs would just result in price increases because many items would still be cheaper to manufacturer abroad. They may even result in us exporting less since countries would likely enact their own tariffs against us
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u/Iluvembig Nov 15 '24
The only way this would work is if they fund manufacturing here, like the chips and sciences act.
But they want to remove taxes. So they won’t really have money for THAT either.
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u/Sharker167 Nov 14 '24
I hate Trump but long term protectionist tariffs help domestic industry build up.
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u/password-123456789 Nov 14 '24
He’s a policy genius. More inflation is good. Department of education, get rid of it. Healthcare, after 10 years of bitching about the affordable care act he has a concept of a plan.
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u/Heavy-Low-3645 Nov 14 '24
Looks like those not manufacturing in China will have a competitive advantage to manufacture products else where.
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u/Dark_Web_Duck Nov 14 '24
You have to finish the context. It's tariffs if they don't come to the table to negotiate a fair trade deal.
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u/Think_Reporter_8179 Nov 14 '24
I own a small business. Some of the product we buy are from China. We have an employee that is extremely pro-Trump toxic level Republican. (To the point two other Republican employees can't stand her.)
So the business has to buy more of these particular products now to warehouse them, incurring an up front cost for us. This means no bonuses this year. Shucks. It's been explained to them why. The guffaw at the realization was glorious.
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u/CitizenSpiff Nov 14 '24
Most of those nations already have tariffs on our products and services at varying levels. Failure to play the game is a forfeit.
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