Posted on 03/04/2025 8:16:38 AM PST by lasereye
So perhaps the best thing we can do here is to give you some context on how big a deal the imposition of tariffs here would be.
The key thing to remember is that North America has been, in effect, a free trade zone for decades. Goods move back and forth across the borders so frequently that the number of crossings is almost incalculable.
Consider an example highlighted by the Wall Street Journal recently. It pointed out that a piston - a component of a car component, might cross the border, back and forth between Canada and the US and Mexico, six times before it actually reaches a customer.
Right now, it doesn't incur any fees on each of those crossings; tariffs change that picture and completely change the economics of making stuff.
Now, there are some deeper long-term discussions that could be had about the merits of making a car in one place versus another, but in the short run, the implication of these tariffs will be inflation. That's almost inescapable.
If it suddenly costs 25% more to bring a piston across from Canada into the US then imagine extrapolating that into every single component making that journey each day: it means the price of many goods goes up.
How many? That's hard to say, but consider that between them, Canada, Mexico and China account for around 40% of all US imports.
They account for almost 60% of energy imports. So while the objective of these tariffs might be (we still don't really have a clear picture since various different administration figures give various different explanations) to rebuild American manufacturing, it takes years to get factories built. In the intervening period, tariffs spell higher costs for American consumers.
And the upshot of those higher costs is lower economic activity.
(Excerpt) Read more at news.sky.com ...
As he points out, any new factories that might be built in the US will take years before they're up and running.
Ed “The Clown” Conway weighs in.
I tend to agree, stop worrying so much about Ukraine and worry like crazy about the people in Nowhere America as I myself are not seeing one oidia things are getting better. Granted he has only been in office a month but he has driven down my 401k, Gold is out of sight and fuel and food has not changed...
Or he may not have. Let’s see, shall we? Yes. Let’s shall.
Recessions are periodic, normal and necessary. We’re due, and it will be a good thing. Trump thinks ahead years, while most react hourly.
MSM narrative is out now. Recession is here and it’s because of the Tariffs. Repeat.
“a piston - a component of a car component, might cross the border, back and forth between Canada and the US and Mexico, six times before it actually reaches a customer.”
That’s the stupidest thing I’ve read today. Who would tolerate such gross economic inefficiency?
You can suck your way into Marxism. Now we have to shoot our way out. Of course it isn’t going to be pleasant. The RAT turds won’t allow it. Americans, all Americans are going to be punished by the RATS for we Americans RE-ELECTING PRESIDENT TRUMP!
Yes, we should just keep getting screwed indefinitely.
The recession started in 2021 when Biden was elected and all his tomfoolery.
It will have the effect that more things will say Made in USA.
The stock market is overvalued and a correction is needed.
Bloated valuations and “mirage economics” won’t do anybody any good.
Economy was in recession before Trump took office
If this nonsense were true why didn’t we get a recession in his 1st term?
That’s right.
Good point.
More like Biden, the demoncrats and their overspending drove us into recession and their minions in the press actively covered it up.
17% of GDP is deficit spending. When you remove that spending that puts the U.S. into recession. Math is hard.
We have been in a silent recession since about August 2023 according to my books in my business. That's when the funny money dried up, credit cards were maxing out and no growth other than on paper.
How dare America stand up for itself.
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