Will Trump’s Tariffs Make Prices Surge? Here’s the Truth

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  • Опубликовано: 14 янв 2025

Комментарии • 63

  • @nofaith5994
    @nofaith5994 2 месяца назад +25

    Nobody mentions the fact that wholesalers and retailers will use the tariffs as an excuse to price gouge at least as much as the tariff itself

    • @goldenshatter
      @goldenshatter 2 месяца назад

      Price gouging is a democrat dog whistle for bad policy.

    • @Exiztential
      @Exiztential 2 месяца назад +6

      @@goldenshatter Glad you agree tariffs are a bad policy.

    • @objectiveperspective777
      @objectiveperspective777 2 месяца назад

      Even Trump voters can't argue that tariff's are a disastrous idea (unless they are bots like goldenshatter).. They instead argue he is joking about it or whatever. It just baffles me.

    • @goldenshatter
      @goldenshatter 2 месяца назад

      @@objectiveperspective777 almost all democrats in youtube comment sections are real bots.

    • @MoreThanYouTimesTwo
      @MoreThanYouTimesTwo 2 месяца назад +1

      ​@objectiveperspective777 he stated that on January 20th, 2026 we will be paying 50% less for our energy so make sure you are. Write it down and send the electric & gas companies no more than half whatever you are paying per unit Jan 21st 2025. Gas better be half as well otherwise we send Donnie the bill, right? Promises made, Promises kept!

  • @afre3398
    @afre3398 2 месяца назад +22

    The problem is that the domestic US producer, will see an opportunity and raise their prices so it match the imported one

    • @AsobiMedio
      @AsobiMedio 2 месяца назад +1

      Bingo. Tarrifs have their place when used surgically, but they are worthless without strong domestic regulations.

    • @ereal713
      @ereal713 2 месяца назад

      ​@@AsobiMediothat's the key work right there "regulation". As far as I can see regulation is about to go out the window.

    • @AsobiMedio
      @AsobiMedio 2 месяца назад

      @@ereal713 Yup. Republicans continue to do the complete opposite of what could be good economic policy if they were even moderately competent.
      My only hope is that they crash the economy quickly enough this time that they don't get to benefit from the fixes Biden made. That way 2026 ends up being a Democratic blowout.

    • @markfeland2285
      @markfeland2285 Месяц назад

      Exactly what happened with the tarrifs on washing machines from Korea

  • @Androctonus84
    @Androctonus84 2 месяца назад +8

    Two things you didn't address: one, as consumers switch to either domestically produced substitutes or substitutes from countries under lower tariffs, those substitutes will be under greater demand, leading to increased prices, which will only end when rising prices cause demand to start to go down - i.e., when prices for the substitutes catch up with the prices affected by tariffs and people once again start buying the goods under tariff. Also, you mentioned retaliation, but not really much about how it affects consumers, just US exporters. But those exporters are US employers, and as we saw with US farmers under Trump's last trade war, whole industries either have to get significant subsidies from the government or go bankrupt when major markets pivot away from US suppliers, since the domestic market can't compensate. And once the trade wars end, as we've seen in this case, US exporters generally don't get those markets back since they've made the investment to source goods elsewhere already. So those losses are permanent, or at least very long-lasting to the point that the industry can't survive without large subsidies, even if the trade war is short. That means either major increases in government spending (and increased budget deficits) or loss of industry and jobs. Job loss will mean wage suppression, so price rises will hurt even more, and potentially start a spiral of reduced spending leading to more business closure, leading to more job loss, etc. So either these promised tariffs are just an empty campaign promise, or the economy is in for a rough ride.
    The other side of this is the supposed move of all this industry back to the US. That's highly unlikely. As we've already seen, companies will simply move production to other countries with lower tariffs because production costs in the US still don't make it cost effective to move here. The only way that moving most industries back here would work is if wages and regulations in the US were lowered to a level low enough that it would be cheaper to make things here than elsewhere, which would mean that the US would have to lower the standard of living and quality of life for the average person to something equivalent to that of the average worker in places like Mexico, Cambodia, or Vietnam - the places companies are actually moving to right now. Funny how no one claiming that jobs would move here seems to ever mention that part of the equation. They treat jobs/workers as if they are just meaningless interchangeable numbers. And all that assumes that the global economic downturn that these trade wars cause doesn't make conditions deteriorate in those other countries such that even a significant reduction in US wages and life quality would still leave US production more expensive.
    This policy either shows a profound lack of understanding of the various components of the economy and how they work together, or is designed to cause a massive global economic collapse that will take at least 15-20 years to recover from, meanwhile allowing anyone with a billion dollars to grab up much of what they don't already own as everyone else struggles to simply afford to survive. Given that the supposed architect of the plan laughed about firing workers demanding fair pay and bragged about doing anything to keep from fairly compensating them when they work overtime, guess which it is. Of course, worst case is that it's both, which is a very real possibility.

    • @jAfr0Thunder86
      @jAfr0Thunder86 2 месяца назад

      You're right. Free trade is the most Capitalism friendly, and makes goods the cheapest. Isolationism, especially by way of Tariffs increases demand and the cost of production. Prices only go up.

  • @Epicfunk
    @Epicfunk 2 месяца назад +4

    I hear inflation and tariffs, I am thinking lump of coal for Christmas.

    • @Leon_Aldrich
      @Leon_Aldrich 2 месяца назад +1

      But at least you have your stocking.

  • @jeffburton9083
    @jeffburton9083 Месяц назад

    I'm replacing/updating my electronic toys this shopping season to last through the next 4 years while I still can.

  • @philiplombardo4332
    @philiplombardo4332 2 месяца назад +2

    Get ready for the rollercoaster ride of a lifetime especially the biggest drop in history and I'm talking about the countries economic decline.

  • @nathangravitt5982
    @nathangravitt5982 2 месяца назад +3

    So, this is supposed to lead to more U.S. production of goods, but what about industries that need goods that can’t be made here?

    • @nathangravitt5982
      @nathangravitt5982 2 месяца назад

      @ Thank you for sharing this information. Too many people don’t understand these things.

  • @markfeland2285
    @markfeland2285 Месяц назад +1

    A lot of domestically produced products rely on foreign parts as well, add to that the price gouging be companies ( 56% of the covid price increases was price gouging)

  • @MrWulf81
    @MrWulf81 2 месяца назад +1

    It's highly unlikely that much production will be moved back to the US. The reason for this is very simple. Anything that is used in the production cycle that is not produced in the US must be imported. So companies have to choose to either produce something outside the US with very low labour cost and then import it with a one time tariff or import all the needed goods and pay a tariff on every imported good and also have the way higher labour cost.

  • @BruceFoerster
    @BruceFoerster 2 месяца назад +4

    Just a guess here, trump won't be too popular in a year or so

    • @objectiveperspective777
      @objectiveperspective777 2 месяца назад

      Oh. He 100 percent will be. The propaganda is going to get worse. He openly states he wants to dismantle liberal media. They will spin it somehow to blame the dems and utilize their divide and conquer bullshit like they have been doing.

    • @MichaelRainey-hr3cq
      @MichaelRainey-hr3cq 2 месяца назад +1

      Even his MAGA loyalist are waking up to the fact that they took it hook line and sinker. Way to go MAGATS.

  • @j.j.oliphant9794
    @j.j.oliphant9794 2 месяца назад +1

    My understanding of tariffs and how they work economically leads me to think that in most cases tariffs are bad if the goal is economy. Tariffs make more sense when there are other goals like preventing China from buying out America.

    • @Zetirix
      @Zetirix 2 месяца назад

      That's one reason why Biden enacted steel tariffs.

  • @MalcolmFMQ
    @MalcolmFMQ 2 месяца назад +6

    You forgot the reciprocal tariffs from China and other countries. Some jobs will not be coming back to the US, such as textiles, small-item consumer products (which are the bulk of all imports), electronics, even iPhones, and many, many more. If the US slaps 200% on EVs, you better believe China will slap tariffs on exports from the US, especially, soy beans, farm equipment, seafood, etc. In the end, nobody wins, only the respective consumers are the losers. Of course, Trump's small brain won't be able to fathom this much understanding.

    • @HHH-nv9xb
      @HHH-nv9xb 2 месяца назад

      Farm product itself: Corn, wheat, soybean will be impacted in a major way.
      Way the go, farmers of American. Welcome to welfare!

    • @mksinsa3465
      @mksinsa3465 2 месяца назад +1

      I've been looking into China's moves to source inputs from other countries and doing so quite aggressively. In fact, he's bullying EU, the West and India so that China is becoming tariff-proof to an extent.

  • @billsmith5109
    @billsmith5109 Месяц назад

    Companies’ CEO’s will fly to Mara Lago, kiss the ring, make some kind of deal that benefits someone in the Trump family. The tariff will reduce to 0.1%. It’s all about the deal.

  • @David-f6j7p
    @David-f6j7p 2 месяца назад

    It's a negotiation. There will be changes. The government will need to on shore our critical manufacturing, to insure we have those things that keep us secure. Pharmaceuticals, defense critical items.

    • @AsobiMedio
      @AsobiMedio 2 месяца назад

      Impossible.
      The United States and the entire continent of North America physically doesn't have the resources required to maintain our production, maintenance, and consumption of the electronics critical to defense and infrastructure.
      It's a geographical reality, China has over 20 times the reserves of rare earth elements that the U.S. does. Even factoring out the difference in manpower expenses and ignoring the initial costs of infrastructure development for rare earth mining, it will be orders of magnitude more expensive and unsustainable for the U.S. to be self-reliant on rare earth production.

    • @David-f6j7p
      @David-f6j7p Месяц назад

      @AsobiMedio chips have been outsourced from Taiwan. They produce 50 % of the world's supply. I don't know if they rely on China for their raw materials. If they do I can see a Chinese economic leverage. The Taiwanese may need to rethink their relations with China.

    • @David-f6j7p
      @David-f6j7p Месяц назад

      @AsobiMedio the Chips and Science Act have been signed by Joe Biden. Maybe the Dems no something after all.

    • @AsobiMedio
      @AsobiMedio Месяц назад

      @@David-f6j7p Taiwan produces little to no rare Earth metals itself, and yes they get most of it from mainland China.
      Taiwan isn't just the leader in terms of production of microchips, but in quality by at least a decade compared to mainland China. Its relationship with China is as it should be, economically inter-dependent but politically independent, with the backing of the U.S. to make sure it stays that way.

    • @David-f6j7p
      @David-f6j7p Месяц назад

      @@AsobiMedio so if Taiwan gets their rare earth minerals from the 20% of global resources of China. That leaves the U.S. the other 80% global resource from wherever we decide to get it, to onshore our production of semiconductor supply for national security purposes. Not civilian use. I believe that is the purpose of the Chips and Science Act.

  • @MoreThanYouTimesTwo
    @MoreThanYouTimesTwo 2 месяца назад

    How many years before the potential benefit to the middle class American is seen from these Trump tariffs?

  • @bertmontoya728
    @bertmontoya728 2 месяца назад

    Plus just this week one of the major tire companies in this country just got done shutting its doors this week. And they might just take all of the tires that we just made here in america back to To japan. SUMITIO Is company that's in buffalo new york. One of the major tire companies in this country. For brand new cars for brand new trucks for brand new. And don't forget doesn't Harley davidson Their brand new motorcycles are going to need tires as well. Or how about your box stores that sells tires. Like Discount tire. BIG-O. I was talking to a person rightire center says they don't know what they're going to do now next year. Walmart auto Motive
    Cost Co. Is that going to affect the workforce in all of those box stores. We feel that there is going to be a lot of downsizing next year or just use another ta Tariffs for a cheaper tires For are Brand new vehicles next year and we're probably gonna have to pay through the nose of that too in our taxes and also Tariffs.. In don't forget Is donald trump's 62 %. Of all good Including tires. I mean so i'm motorcycle tires...

  • @brunobembi5276
    @brunobembi5276 2 месяца назад +1

    very simple-minded analysis

  • @bbrenddon
    @bbrenddon 2 месяца назад +1

    Yea... that's the point... BUY AMERICAN

    • @IFoundMyUsername
      @IFoundMyUsername 2 месяца назад +6

      What exactly do you produce? Can you remind me?

    • @bbrenddon
      @bbrenddon 2 месяца назад +8

      @ bombs and bad decisions

    • @nathangravitt5982
      @nathangravitt5982 2 месяца назад +2

      I thought the point was more affordability and more money in our pockets. That’s all I’ve heard for the last two years from Trump supporters-“I had more money when he was president.” U.S. production is going to lead to higher prices.

    • @drewishgaminginc.3942
      @drewishgaminginc.3942 2 месяца назад +3

      Why don't you buy American right now? Oh yea because it's expensive.... you think American companies will lower their prices with less competition? That's simply not how things work.. oh well, yall will get exactly what you asked for. Have fun paying 60 dollars for a t shirt next summer

    • @bbrenddon
      @bbrenddon 2 месяца назад

      @@drewishgaminginc.3942 if you're a CCP meddling commie you can just declare it instead of letting us figure it out

  • @jamesalias595
    @jamesalias595 2 месяца назад

    Since most things are tariff free, even if Trump doubled the existing tariffs it would only be a small revenue increase and there would be virtually no impact on inflation or the consumer. So Trump could claim victory and brag he doubled he tariffs and kept his promise all while actually hurting almost no one as like you mentioned there would be substitution and tariffs are extremely low. Since there are no Chinese EV's being sold in the USA the tariff could be 5000% and it would make no difference.

    • @drewishgaminginc.3942
      @drewishgaminginc.3942 2 месяца назад +1

      Like 85% of our computer chips come from China...yea let's double the tariffs on China lol, let's do it and see just how much prices rise from just that one act

    • @jamesalias595
      @jamesalias595 2 месяца назад

      @@drewishgaminginc.3942 No 85% of our semiconductors do not come from China, and Biden has already doubled the tariffs on Chinese semiconductors and no one has noticed. Tariffs make up such a small percentage of taxes we collect in the USA, that doubling them for the most part would go unnoticed like the 100% increase in tariffs on Chinese semiconductors. Most things we import have no tariffs and when tariffs against one country is raised the supply source shifts to another. I am not talking about Trump creating new tariffs on goods not taxed now as that would impact prices.