Trump’s Tariff
It’s happening again. Two nights ago, Trump dropped a tariff bomb: 25% on imports from Mexico and Canada , plus a 10% hit on Chinese goods. And if that wasn’t enough, he straight-up warned Europe that they’re next .
According to independent research, these new tariffs will cost the average American household an extra $830 per year . And guess what? Markets are already bleeding in the pre-market session.
Meanwhile, Canada’s prime minister wasted no time firing back, slapping a 25% tariff on U.S. imports. That’s right—Trump started a fight, and now American businesses are stuck in the crossfire.
Tariffs Are Just a Tax on Americans
Let’s break it down. Tariffs aren’t some genius economic move—they’re a tax on imported goods. And who pays that tax? Not China. Not Mexico. You do. U.S. companies that rely on imports have to eat those costs, and guess where they pass them? Straight to American consumers.
So, if your car, fridge, or even your six-pack of beer starts costing more, you know who to thank.
The Trade War Didn’t Bring Jobs Back
Trump’s big claim? That tariffs would bring manufacturing jobs back to the U.S. Reality check: They didn’t. A Federal Reserve study found that while a few industries got short-term protection, tariffs caused a net loss of American jobs.
Why? Because when companies have to pay more for materials, they cut costs elsewhere—like laying off workers or moving operations overseas. Take the example of Harley-Davidson. After Trump’s tariffs sparked a trade war, the European Union retaliated with its own tariffs on American motorcycles. Instead of boosting U.S. jobs, this forced Harley to shift some production to Thailand to avoid the extra costs. So much for America First.
Tariffs Didn’t Shrink the Trade Deficit Either
Another big Trump promise? That tariffs would reduce America’s trade deficit. The result? The trade deficit actually grew, hitting a record $678.7 Billion in the end of 2020. Instead of making the U.S. more competitive, Trump just made everything more expensive.
And now? He’s doing it all over again.
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This is too sad. Especially the fact that I don't think the consequences would make Trump stop it. It would make him look like he's weak, a failure, and like he is admitting that was a dumb idea. So he might keep up with these tariffs no matter how much consequences innocent Americans suffer 🤦🏾♂️.
Of course he won’t stop they voted him because of the tariffs but the average voter doesn’t know how these works and trump did not inform them that the tariffs are paid by the consumers
Trump probably didn't even know how it works cos he's surprisingly something of a dummy himself 😅.
One thing to note is that Trump can only impose tariffs because congress has delegated that authority to the president in various legislation over the years. They can take that power back any time.
Yeah Of course they can From what I am reading at the start the president was just a figure head the congress had all the power.
It's sad though. I felt he probably needed to explain to Americans why he made such an audacious move. He's honestly not starting his presidency on the right note.
Well he told them before the elections
I think, he knows the consequence, but still moves ahead.
Of course he knows he just doesn't care.
It will work out fine and the US and it's citizens will benefit. Panama has already changed their policies with the Canal. Mexico is sending troops to the border and Canada will do the same. The EU, UK ad South Africa which are in e sights next will also have no choice as well as all the BRICS nations. Trump has weaponised trade and it works plus in the long term manufacturing will return to the USA. Forget the $830 it costs America consumers as that is very short term as if goods are going to remain competitive prices have to drop against local supply. I wish all countries would do this and forget relying on China as they are no longer cheap and people should wake up. Manufacturing is going to return to each country and should never have left in the first place.
Panama was already pro American the president that got elected in July was elected because he wanted closer ties with the US. Yes they send the troops but this won’t change the deficit they have . The US will never be able to compete in manufacturing of low tech things the average American will have to get paid at least $50000 per year where a Chinese will get paid 3 times lower. Yes they can get back the high tech manufacturing. The average Mexican worker is getting paid to assemble a car that will later get imported to the US 883$ per month an average worker in the US would have to get paid 5,677$ per month. Yes Europe will eventually do whatever trump wants because the union is extremely weak.
I do believe more good than bad is going to come from this considering we are only in the first 2 weeks of this term. The right pressure will change thigs as countries are panicking because thy have take advantage of weak leadership. I looked at 3 different manufacturing products last year and the cost of a completed item came in under 30% of the cost of the same product from China. I do think if people do check they will be shocked as this will tur out to be across all products.
I just read an article right now the EU leaders are having a summit because they want to build a joint European defence macron is arguing that they have to use weapons that are being manufactured in EU and the majority is afraid of what trump might do . We Europeans we are idiots we have a population of 450 million and a joint gdp of 17 trillion we are thinking what trump will think!
Yes because the NATO has registered armament suppliers who are mainly American companies. NATO is cooked if they do that and then they are on their own. Unfortunately the EU Trade figures show they rely heavily on the US which makes up 20% of their exports and will suffer if they play games. The EU is more concerned about climate change than fixing real problems and why leaders are going to be voted out very soon. The problem with the EU is that it is not unified as there are too many other games on the go and it will most likely break up. An EU as one would be strong, but not as it is now with very little public support from the citizens of each member. The illegal migrants flooding in has not helped matters.