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 ...
Totally agree. President Trump is our hero, but that won't be recognized until years in the future. He is rescuing the USA from collapse.
Our nation survived with tariffs funding our nation, until fools instituted an income tax in early 20th Century supposedly only to impact the very rich. Inflation ensnared the middle class in income taxes. Trump wants to lessen the taxes on us Americans, and foist the costs on other countries via tariffs.
Democrats want us to waste tax dollars on foolish wars overseas, while European nations underfund them. Trump is putting a stop to that, forcing Europe to fund their own war aims. That helps American tax payers.
Federal spending was out of control under Democrats. The deficit is unsustainable. Trump is cutting federal spending, while Democrats are fighting Trump trying to stop the waste. Trump is helping American tax payers by stopping the waste.
These items, and more of his policies, even though a recession is happening, are necessary to keep the USA from collapsing and puts America first. Conservatives know it, but complainers are too stupid to realize. Thank God for President Trump.
Now is the time to buy stocks when Wall Street is like a cat at a shooting range over anything that moves.
It went high when he was elected now leveling will go up soon.
Thanks, you see past the trees and into the forest.
“Trump wants to lessen the taxes on us Americans, and foist the costs on other countries via tariffs.”
I think Trump sees it as fair trade in answer to existing tariffs (and equivalent damage like illegal aliens) we’ve been paying to others. I’m expecting the tariffs to be temporary but we’ll have to see, I could be wrong. The tariffs are going to hit them harder than us if Trump’s math is right.
“Democrats want us to waste tax dollars on foolish wars overseas”
Yes, and unfortunately some here agree with them.
I nibbled today, adding to positions that will be fine over time. I’m 70% in cash/equivalents so nibbling is easy. If they go down more I’ll nibble more.
Stay with it 3.6 good years ahead.
Heh, I’m hopeful the good effects will be felt for quite some time beyond then.
It will
Exactly right. Unfortunately for us, we are at that stage of life when we are required to take money out of our IRAs. Fortunately, we have room to wait for a while before the deadline for the RMD.
I waited until the end of the year to take my RMD, because the stock market was going up. For the next RMD, I’’m doing a wait and see to decide when to take it again. If the market is going down, maybe I’ll take it early before market really crashes. I do have cash on the sidelines to hop back in if the market turns around.
Yes and one can say tariffs = corporate welfare.
This may very well be the last straw that kicks us into a major 10 - 20% correction on the markets.
You never know when good things will happen and they do.
Yes. And President Trump’s speech last night was a VERY good thing.
Indeed
The UK’s Deep State keeps hoping...
How much US taxpayer money has been laundered to the UK to keep its failing welfare state afloat...
Inquiring minds want to know.
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