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| Trump's Chaos over Tariffs and The Market reaction is not going well , but certainly Trump may have to negotiate a rebound in the market. |
Adam Smith warned the UK against this kind of stupidity in 1776. And, yet, here we are. The ERA of economic stupidity is upon us . Well am not trying to criticize Trump's decision to dump tariffs on Canada , Mexico, other countries. It's TRUE that the United States is treated by huge taxes on imports into the country. BUT the issue with me is the negative Domino effect on the US stock market. If you think prices are high now, wait till Trump's tariffs kick in! And guess who ENDS up paying for these crazy tariffs? No, it's NOT the foreign country, or the importers who simply pass ALL of their costs on to you, the consumer! Got it?Wall Street went into a panic over the " uncertainty" of the economy . Next TRUMP rolled another 💣 BOMB that America might be feeling a little Recession. Whatever 😏 !? Trump has a better chance of CUTTING ✂️ TAXES, and negotiating tactics with trade , rather than slapping tariffs on countries that seem to have their cards ♦️ in our own Stocks. This can't be The ART of THE DEAL 🤝 . One possible motivation is revenue generation. He’s implementing them as a form of national sales tax. The end goal is to pass corporate tax cuts by substituting the revenue from the tariffs. Obviously this does more harm than good as tariffs inflict a large amount of waste. However, the very rich (who are his real base) will benefit at the expense of the middle class and below.I'm 100% convinced that we won't see a properly functioning government in the US in my lifetime. The propaganda and culture wars run far too deep and and the entire system is set up to prevent democrats from being able to fix things in any sort of lasting way. We're watching a complete stripping of the US for parts so that billionaires can consolidate money and power, and no one will ever be able to build it back to what it was even worse in the Obama years. Nah, the kind of economic collapse these tariffs will cause is going to go way beyond a little market manipulation, at least in terms of outcomes. The biggest industry that is going to get fucked here is the American auto industry, and they're going to take it from both ends. Their manufacturing costs are legitimately going to go up a ton, and even if they don't raise prices out of proportion, the new car industry is highly affected by price increases. On the other side of the equation, a failing economy is going to mean fewer people in a position to buy a new car. If Trump continues with this stupid plan we're going to see a repeat of the used car market in his first term, where used car prices skyrocket, and new car sales are going to tank.
It's EVEN though how the MARKET REACTION. President Donald Trump on Thursday doubled down on his escalating tariff plans, even as his economic agenda continued to rattle investors and contribute to a weekslong stock market sell-off. "I'm not going to bend at all," Trump said when asked about his tariff plans during an Oval Office meeting with NATO Secretary General Mark Rutte.But let us not forget it was WALL STREET & CONGRESS who led the selling & closing of American companies! They were the "pimps" for the foreign countries who benefitted from our outsourcing craze of the 1980s & 1990s, followed by China. Democrats in Congress also allowed foreign "price dumping" during the 1970s & 1980s. They said U S. businesses were evil, and they would not take any gov action to defend them against "unfair" trade. The President doesn't drive equity markets, so "Trump" didn't do anything Equities rise and fall , For all the leftist "1%-ers" who rail against "Wall Street" and 'the rich' it's comical to see this sudden desire for 20-30% annual returns in the stock👉 market. Nobody is going to make expensive changes and move their plants to USA when this president makes abrupt changes (or threatens them). Businesses thrive in stability. They will make plans that don't include USA. Their brain. Trump tariffs would crater the economy, cause an actual recession, and lead to significant layoffs in the US as companies adjust to significant shifts in their cost. There’s not a single person with a basic understanding of fundamental economics who thinks a stock market at all-time highs resembles anything close to baked-in assumptions that tariffs are coming. The MARKET REACTION is possible that foreign governments investing in US stocks are pulling out .The sell-off in US stock markets fueled by fears of a recession could prompt investors to put their money elsewhere, changing up global financial flows. At the end of the day, we just don’t know. Not to just dogpile on Trump as always, I don’t think we know what he is ACTUALLY UP TO. So it sure is possible. If I had to guess, he’s going to implement some high profile but minimal or targeted impacting tariffs. He is already making a big show of it and how great the policy is. Democrats will over react , that they were responsible when Joe Biden helped plummet the economy leaving Trump with chaos or raises prices, but they likely will have minimal macroeconomic impact because they are only limited tariffs. I sure am discounting the chance of across the board 20% tariffs as happening to be pretty unlikely that the next couple of months will the MARKET REACTION will reverse .
