Trump will hike Tariffs on China by 10 percent, the EU with 25 percent, but Canada and Mexico increases unknown.
Ten Percent on China
In the past two days have had conflicting statements from Trump on tariffs. Today we have clarification on China, with Mexico and Canada on deck.
The Wall Street Journal reports Trump Plans Another 10% Tariff on Products From China
In a post Thursday on his Truth Social platform, Trump reinforced his threat to impose 25% tariffs on products from Canada and Mexico, saying the U.S. neighbors hadn’t done enough to curb drug smuggling to win another delay for those duties. The administration had postponed the Canada and Mexico tariffs for 30 days at the beginning of February to allow for negotiations.
“[T]he proposed TARIFFS scheduled to go into effect on MARCH FOURTH will, indeed, go into effect, as scheduled,” Trump said. “China will likewise be charged an additional 10% Tariff on that date.”
The announcement came a day after Trump appeared to hint that the Canada and Mexico tariffs could be delayed again, telling reporters that they were scheduled for April 2. But the White House backed off those comments, saying a decision hasn’t yet been made on whether to give another reprieve to the North American nations.
China Won’t Be Charged Anything
Trump keeps making economically illiterate statements.
Tariffs will be paid by US importers who are nearly certain to pass those tax hikes to US consumers.
Some of the tax on consumers may be offset by a strengthening dollar, but that only works until it doesn’t.
Offsetting 25 percent tariffs with a strengthening dollar is very unlikely and sure wouldn’t increase exports if it did.
25 Percent Tariffs on ‘Cars and All Other Things’
Car Dealership Guy reports Trump Moves to Hit EU with 25 Percent Tariffs on ‘Cars and All Other Things’
First things first: Trump floated the threat to enact tariffs against the EU—which caught many off guard—when taking questions from reporters, with members of his cabinet team present, saying that the European Union has taken advantage of the US.
- Trump didn’t share any specifics of the levies against the EU or whether the measure is tied to previously announced tariffs, simply saying they would be 25% “on cars and all other things.”
- The President also said that the 25% tariffs against Mexico and Canada will take effect April 2—but that was quickly cleared up by the White House, which indicated that the tariffs against the neighboring countries will indeed go into effect next week.
- Trump’s 10% tariffs against China have already been enacted but have only been imposed on Beijing.
President Trump’s more direct 25% tariff threat against the EU likely caught some off guard in the European Union, given that he recently hosted French President Emmanuel Macron at the White House, in what appears to have been a very positive meeting between the two heads of state, for the most part.
The growing number of tariffs and confusion around which ones will be enacted and when heightens concerns about the measures. More specifically, it puts carmakers in a current state of limbo about the steps they need to take to try to offset the impact of the levies and higher costs that will affect vehicle pricing for dealers and consumers.
Tariff Chaos Contributes to Delivery Delays
Trump is now applying tariffs on everything from China. Previously, packages of $800 or less from China were exempt.
This led to so much postal chaos and confusion that Trump paused the so-called de minimis provision on February 7.
CNN describes the impact in Trump’s Tariffs Chaos is Contributing to Delivery Delays of Goods.
Expect delays of 12-20 days or longer while authorities investigate your $3.29 screwdriver.
Trump’s Tariffs Will Increase the Cost of a Pickup Truck by $8,000.
On February 26, 2025, I noted Trump’s Tariffs Will Increase the Cost of a Pickup Truck by $8,000.
Trump says it’s full speed ahead with tariffs. It will cost US jobs.
Trade Deficit with China is Understated
On February 18, 2025, I noted US Trade Deficit with China is Understated by as Much as 30 Percent
Normal trade math does not add up. US imports and China exports are not in sync.
The lead chart is from the above link.
A portion of the underreporting is the de minimis exclusion of up to $800. The rest of the underreporting is goods that are from China labeled Vietnam or Mexico.
We will track that now, to make sure you pay proper taxes on your your $3.29 screwdriver and $2.99 flashlight.
Has anyone thought this through?
Of course not. Instead we will fire postal inspectors.
Addendum
I understand this negotiating theory.
But Trump is breaking his own Senate-signed USMCA treaty 89-10
It means
- Trump’s word is worthless
- The US cannot be counted on to honor its treaties
Well….EU countries were amongst the few who could still stand Americans. The way things are going, I start feeling closer to Chinese. Keep your junk US, I’m buying from China again.
“Trump is now applying tariffs on everything from China.”
Outstanding!
“Trump’s Tariffs Will Increase the Cost of a Pickup Truck by $8,000.”
Even more outstanding!
Trump will hike Tariffs on China by 10 percent, the EU with 25 percent”
And it just keeps getting better!
PapaD, where are you? It’s really starting to look like Trump is doing what he said he would do. No more guessing or waiting for when or if.
We have a $29T economy. That’s a lot of economic gusto. It’s time we have an administration that puts America first.
MAGA!
Yes. As I mentioned earlier I am hopeful that Trump will implement his tariffs on Mexico and Canada next week. This is a wonderful real world economic experiment. Let’s see what happens! Will those tariffs accomplish everything that Trump promised?
Tariffs will fill gov coffer after Mar 14 if there will be a gov shutdown. or not. Congress isn’t Trump’s friend. He will rules this country with the supreme court. The “Golden Age” is back. MAGA are his fans and that’s good enough for him.
No problem. I certainly agree that he’s been waffling which may continue. We agree that it’s a grand experiment, and in IMHO one that absolutely needs to be tried.
The CEO on Andruil, Luckey, says that the stuff they’re doing with AI & weapons is only about 3 years ahead of China. Along with pharma, we have to remove our dependency on China for any electronics that go in weapons & other strategic goods.
No, tariffs are not going to accomplish everything he promised. For one, he hasn’t promised a recession, but they very well may cause one.
I don’t think people realize just how strong of a position the US is in. You see about 60% of ALL the debt in the WORLD is denominated in US dollars. So foreign governments, businesses and yes even households require cash flow to service their dollar debt.
If there is a slowdown in the cash being received from the US market … well you get that.
Today, the dollar crushed everything even gold was down 1.5%. In the FX markets, everyone was trying to get their hands on dollars ’cause they might get scarce.
Dollar debt repayment takes precedence over everything.
You are totally confused. No wonder we can’t compete anymore.
The fears of inflation in the goods sent to the US are wildly exaggerated. the currency markets will negate a good portion of that.
Oh, I’ve thought it through alright. I have been loading up on SPY PUTS and have been for a while now.
If I were Canada or Mexico, I wouldn’t bother with anything related to Trump’s demands because he’s given them an impossible task. After 40 years of “the war on drugs” the United States has been reduced to beginning neighbors to help stop the problem. Well if the U.S. couldn’t do it, how do they expect someone else to do it?
It sucks for Canada/Mexico but they are going to have to bear it until he’s out of office and someone else comes in. Both of these countries are better off “investing” money into electing the next non-MAGA candidates at the next elections rather than wasting money on chasing fentanyl bandits.
To add insult to injury, Trump has threatened not to honor some treasury bonds so yet another reason to avoid anything with the U.S. until he’s gone.
Oil co increased DUCs production in 2024, but DUCs inventory deflated fast.
A Renewable Energy Future Will Collapse the Financial System
https://www.artberman.com/blog/a-renewable-energy-future-will-collapse-the-financial-system/
I always read Art’s articles. Very good stuff.
Here’s the article that talks about how people were wrong about peak oil. Based on your oft-repeated claim that “we are about to go over the cliff and run out of oil”, you should probably read it.
https://www.artberman.com/blog/peak-oil-requiem-for-a-failed-paradigm/
A number of the peak affordable oilers have suddenly changed their tune on this in recent weeks …
Which makes me wonder if someone has tapped them on the shoulder and said — things are getting very desperate now — shale is rolling over — we do NOT want the herd to panic… for the greater good … make a 180 turn.
https://fasteddynz.substack.com/p/us-shale-nears-limits-of-productivity
Your conspiracy theories are like most conspiracy theories. Nonsense.
Your bulleted points are all correct. It is highly likely that US shale oil production will peak sometime in the next decade. But “peak” does not mean “rapid decline”. When US shale oil production of 10 mbpd begins to decline, it will likely be by 0.2 or 0.3 mbpd per year. While supply from elsewhere in the world will keep growing to offset this decline.
Also, I see that with the Plaquemine LNG terminal up and running, US LNG exports have increased to 15.7 bcfpd. This number is scheduled to increase to 26 bcfpd in the next few years thanks to increasing gas production from shale reservoirs.
Natural Resources Market Commentary – Q3 2024
Goehring & Rozencwajg Natural Resource Investors
In the volatile world of U.S. natural gas, the past quarter unfolded with all the drama of a Shakespearean act. Prices began at a modest $2.60 per Mcf, buoyed by the quiet equilibrium of early spring. But by mid-June, the plot had transformed. An unseasonal heat wave gripping the central United States sent prices soaring to $3.15, a rally that spoke as much to the market’s sensitivity as it did to the hot weather. Yet, as quickly as the heat arrived, it receded. Milder temperatures reclaimed the stage and gas prices tumbled in response, bottoming at $1.90 by the end of August.
While market participants obsessed over weather patterns, few paused to consider the silent protagonist in this unfolding drama: inventories. The 2023–2024 winter, among the warmest on record, left a legacy of near-record storage levels. At the outset of the injection season, inventories stood at a staggering 700 Bcf—or 40%— above the ten-year average. Yet, tight fundamentals have nearly erased this surplus in a remarkable turn. Over the third quarter alone, inventories were drawn down by almost 400 Bcf. By quarter’s end, storage levels stood less than 5% above the norm, a quiet but profound shift that few have fully grasped.
This brings us to the present moment, where the market stands at a crossroads. If the coming winter delivers typical cold—after two years of unseasonable warmth—U.S. natural gas prices could well align with international benchmarks which currently hover near $14/MMBtu. The implications are vast, mainly as U.S. natural gas production, once seemingly boundless, now hints of rolling over.
Over the past fifteen months, growth in U.S. gas production has stalled. Indeed, in the past seven months, production has begun to contract. Since peaking in December 2023, U.S. dry gas supply has fallen by 3 Bcf per day—a 3% decline. Year-over-year data tells a similar story, with dry gas production now down by 1.2 Bcf per day, slightly more than 1%.
https://fasteddynz.substack.com/p/natural-gas-production-is-contracting
NG was: 1,9BKWh in 2024. Renewable from all sources: 1BKWh,
24.2% of the 4BKWh total. All we need is more inverters.
Do you just spout nonsense all the time without doing any research?
You end up looking like a fool when you do this.
Shale Wells Producing More Early On, Then Declining Faster Than Ever
The challenge of sustaining shale production is growing larger.
Production from the average US shale oil well is declining more rapidly every year, with the biggest losses by far in the Delaware Basin, according to a report from Enverus.
Increasing rapid declines by many thousands of older wells are obscured by the rise in total production from new wells as the industry engineers completions to maximize early production.
On a chart comparing average decline curves by year, each year begins higher and plunges at a steeper rate than the previous year.
“The US shale industry has been massively successful, roughly doubling the production out of the average oil well over the last decade, but that trend has slowed in recent years,” said Dane Gregoris, report author and managing director at Enverus Intelligence Research.
The production decline rate has grown steeper at a rate of more than 0.5% annually since 2010, the report said.
“We’ve observed that decline curves, meaning the rate at which production falls over time, are getting steeper as well density increases. Summed up, the industry’s treadmill is speeding up and this will make production growth more difficult than it was in the past,” Gregoris said.
https://jpt.spe.org/shale-wells-producing-more-early-on-then-declining-faster-than-ever (The Journal of Petroleum Technology)
Of course I look at the data. US Natural gas supplies continue to grow, which is why we are exporting more and more LNG. If supplies were declining (as you say), then how do we keep increasing LNG exports? Here is some of that data.
https://www.eia.gov/naturalgas/weekly/#tabs-supply-3
Now you can inform me again that the problem can be solved by running more pipelines hahahahahahahahaha
DUH…
We are building new pipelines all the time. A lack of pipelines are one of the constraints that slows production. Once the new pipelines are built, production can increase because we now have the takeaway capacity in place.
https://www.aogr.com/magazine/cover-story/new-pipeline-projects-feed-growing-gas-demand-alleviate-takeaway-constraints
F*ck, you are stupid.
Try this Dave – go to Dairy Queen and big two super sized shakes.
You suck on one of them by yourself.
Invite 5 other people to insert straws and suck on the other one at the same time
Speaking of stupid …. DUH
LOL! So when I present you with the evidence that you are wrong, you resort to sucking on a straw! Hahahaha! What a dumb f*ck!
How about you present me with some data that shows that US LNG exports are declining? Because they continue to rise and will keep rising for the rest of this decade.
https://www.iea.org/data-and-statistics/charts/lng-exports-for-selected-countries-2015-2025
I never said exports were declining. I said that shale production is starting to roll over
Here’s another one showing the growth in LNG exports.
https://financialpost.com/pmn/business-pmn/record-us-lng-exports-may-give-relief-to-buyers-in-europe-asia
Indeed if you suck what’s left faster… and export it… that does not mean you have grown the reserves.
Even an average 10 year old could understand that.
What do you do for a living? Are you like a janitor … or a Uber driver? Maybe a night security watchman?
Whatever you do it surely must not take much mental horsepower… because you are incapable of understanding basic logic
It isn’t just me who does not understand your “logic”. The entire oil and gas industry has trouble understanding your “logic”. Because they are spending huge sums to add more pipelines to take away even more gas from the Permian and Haynesville shale. Perhaps you should contact them and explain how they are wasting their capital and depleting their reserves even faster. I am sure that your straw example will win them over.
https://undergroundinfrastructure.com/magazine/2024/february-2024-vol-79-no-2/features/north-america-2024-pipeline-construction-outlook-new-lng-terminals-lead-call-for-more-pipelines
I will post this separately as it seems we can only place one link per post.
https://www.spglobal.com/en/research-insights/special-reports/major-new-us-industry-at-a-crossroads-us-lng-impact-study-phase-1
We have all of the oil we’ll ever need sitting out in the Green River Formation of Wyoming & surrounding areas.
“The Green River Formation—an assemblage of over 1,000 feet of sedimentary rocks that lie beneath parts of Colorado, Utah, and Wyoming—contains the world’s largest deposits of oil shale. USGS estimates that the Green River Formation contains about 3 trillion barrels of oil, and about half of this may be recoverable, depending on available technology and economic conditions. The Rand Corporation, a nonprofit research organization, estimates that 30 to 60 percent of the oil shale in the Green River Formation can be recovered. At the midpoint of this estimate, almost half of the 3 trillion barrels of oil would be recoverable.
This is an amount about equal to the entire world’s proven oil reserves.”
It is difficult to argue with Fast Eddy. He “is convinced” that the US is about to run out of shale oil and natural gas. He keeps referencing the same old out-of-date articles that “project” future declines, when the “actual” numbers continue to show growth during those projected timelines. When you present him with the evidence that those projections were actually wrong, he resorts to childish insults. He can’t handle the truth when it doesn’t match his narrative.
Gaslighting on Energy IntensifiesDesperate to distract the barnyard animals from the truthhttps://fasteddynz.substack.com/p/gaslighting-on-energy-intensifies
The theory of peak oil was based on two facts at the time it was hypothesized:
1. The technology used to drill and explore for oil at that time.
2. The price of oil at that time.
It was 100% correct based on those two facts at that time.
If oil fell to a price of $20 per barrel now and remained there we would also be at peak as production would plummet and little or no oil would be supplied to the market.
Yep. Everything you said is correct.
Regarding your last statement: “If oil fell to a price of $20 per barrel now and remained there we would also be at peak as production would plummet and little or no oil would be supplied to the market.”
The key statement is “and remained there”. While oil could easily drop to $20 for a short time, something very strange would have to happen for the price of oil to remain at $20. Demand would have to disappear.
The price of Oil, like any commodity, is based “primarily” on the supply/demand balance. Oil prices even went negative for a short time in 2020 during the pandemic as demand crashed, while supply took some time to adjust. Of course, low prices are the cure for low prices, and prices recovered as demand rebounded. Prices then zoomed higher to over $120 in 2022. Of course, high prices are the cure for high prices, and now prices are back down to the $70 range.
The average breakeven cost for a new shale well is currently around $65. If oil drops below that price, producers will stop drilling and supply will decline. But if oil is that cheap, then demand will increase, and the price will go back up.
The price of oil traded on the US futures market went negative.
The price of oil in the physical market didn’t. Outside in of the US it had zero effect.
Unlike the gold paper market on the COMEX, the oil futures market doesn’t really affect the real physical market in oil as much.
The COMEX gold futures exchange contracts were basically set up as a cash settlement type of arrangement with little actual in physical delivery. A con game for the market makers and govt to apply pressure to the gold price.
The COMEX is supposed to be Basel III compliant on 1 July this year.
If it actually happens there are going to be lots of fireworks with respect to the gold price.
Also lots of wild down moves to hit the stops and allow the short sellers to cover their paper shorts.
As of 1 July if COMEX contracts do not go Basel III compliant the COMEX is finished.
Buy American! Get rid of ALL welfare (no free housing, no free health care (i.e. Medicaid), no free food stamps. Americans will either take these jobs or live off charity of family, friends, churches, etc. More people will take jobs if ALL the free stuff is eliminated.
I would be glad to pay a tarriff/tax if it means my federal and state taxes would be reduced to not having to pay for all this FREE Sh*t for people that are too lazy to work. This would mean other countries wouldn’t sell as many products to the US as the prices would be higher. Due to inflation a lot of Americans are cutting back on purchases. They’re primarily only purchasing/paying for necessecities. This would also hurt the other countries.
Where did you get the idea that the tariff revenue will result in Federal tax cuts?
From Trump:
https://www.foxbusiness.com/media/trump-proposes-abolishment-federal-income-tax-bringing-us-back-richest-period-history.amp
I think Trump said that.
When the tariff talk becomes old, Trump will start talking interest rates. That will really stir up the pot. Everybody will rush to the US to build wonderful factories. /s
It’s a three ring circus, always a fresh spectacle!
The Constitution declares that government funds are to be raised through tariffs and duties and not the income tax and dozens of other sneaky ways. Tariffs on Red China are long overdue. They put all kinds of obstacles on non-food American imports and steal our technology. As for Europe, this is Trump’s answer to them not paying their share for military defense.
The Chinese had a 57% tariff of US polysilicon starting from the Obama years.
the VAT that the Europeans are so fond of act like tariffs where imported goods are concerned. Found this online.
“Luxembourg levies the lowest standard VAT rate at 17 percent, followed by Malta (18 percent) and Cyprus, Germany, and Romania (all at 19 percent). The EU’s average standard VAT rate is 21.8 percent, nearly seven percentage points higher than the minimum standard VAT rate required by EU regulation.”
Remember too that this is all part of an overall strategy- a negotiation. For example the Mexico Tariff is tied to them (and China) controlling the mfr. and transport of Fentanyl over the border. And much of that does come here from China through Mexico. We are really fortunate to have Trump and his team finally doing what is necessary. It stings to have to read these constant nit picking criticisms- recession, loss of jobs, etc.. They will start off and then make adjustments to the rates along with trade partners.
I understand this negotiating theory
But Trump is breaking his own Senate-signed USMCA treaty 89-10
It means
1. Trump’s word is worthless
2. The US cannot be counted on to honor its treaties
I’m sure that deep in the Treaty’s fine print are numerous articles that allow changes based upon national security or exogenous factors not envisioned at the time the Treaty was signed.
There are zero national security threats with Canada
A national security threat is anything the President says it is as comes under his powers as President.
Money launderling of drug money, establishment of drug labs, or even transshipment of Chinese steel are examples.
Perfidious Albion, Yankee style.
“For example the Mexico Tariff is tied to them (and China) controlling the mfr. and transport of Fentanyl over the border.”
If Trump has secured the border with his military deployments and policies then why is it necessary to tie tariffs to fentanyl?
There are many people here praising trump for stopping all the illegal immigrants from coming so does that mean that fentanyl is walking across the border all on its own?
Right now Mexico is a narco state basically controlled by a bunch of gangs that the Mexican government is powerless to do anything about.
As such these gangs are allowed a free hand to do anything they want which makes it easier for them to undertake drug manufacturing in Mexico and they can easily distribute those drugs through the border..
I guess that you have no idea what a good neighbour is. Mexico certainly isn’t one to the US.
If thats true then why isnt Trump condemning all the US automakers and other industries like Johnson and Johnson for having factories in Mexico?
I think I heard Trump and his people say that our Tariff Rate is just reciprocating theirs- if they drop the rate we will too.- I’m quite sure that was repeated a few times. In addition, lets say importing I-Phones- I’ve heard they only cost $10 -$15 to make and ship over here. The tariff would be based on that discounted rate, so is easily absorbed by Apple selling them for 80x. That may be true of many other things from that part of the world.
That is the traditional reciprocal tariff and that is to be announced April. The current tariff discussion is a negotiating tactic pretty much.
Canada doesn’t have any tariffs on US imports. So by your logic we should be eliminating our tariffs on all Canadian products, such as the 14.5% tariff on Canadian softwood lumber.
Total crapola.
Canada has numerous tariffs and restrictions on US imports.
For its part, Article 2.4 of the USMCA states that “{u}nless otherwise provided in this Agreement, no Party shall increase any existing customs duty, or adopt any new customs duty, on an originating good,” and that tariff levels set forth in Annex 2-B will be applied
So essentially you are wrong
Tariffs are what Trump negotiated
All imports to Canada get hot with a Federal GST of 5% and then the applicable Provincial HST/GST.
Packets processed by Royal Mail for collection offer get hot with a C$20 processing fee on top of that.
MFN nations such as the US get duty free on some items up to a limit and then get hit with a duty. Such things as meat and milk are hit with a 28.5% duty.
All you have to do is look up the data from the Canada government website.
Then please list those Canadian tariffs. All I have ever seem is some meaningless Canadian tariffs on wild game and fish.
As long as “money for nothing and your chicks for free” , then all is right in the world.
Learning to play the guitar don’t do it anymore, unless you’re daddy’s rich like Taylor’s.
China isn’t our friend. The EU isn’t our friend. Mexico isn’t our friend. Trump has no friends. He doesn’t need ones. He doesn’t need NATO. That’s why the GDP went straight up to: $29.719T. SPX behaves erratically today.
With James Taylor and Randy Newman, you got a friend (in me).
The Jerk (10/10) Movie CLIP – That’s All I Need! (1979) HDYouTube · MovieclipsMay 30, 2011
Also, Israel isn’t our friend.
So far Trump didn’t change his mind about Israel, but he might. For the US Israel is a great high tech center and a petri dish to test weapons and modern warfare. Next week the best general in the world – Lt General Herzi Halevi – retire.
Well actually the US is their bitch.
“China isn’t our friend. The EU isn’t our friend. Mexico isn’t our friend.”
And Canada is no longer our friend.
Guess we will have to become friends with North Korea. Maybe they have a lot of rare earth minerals.
The US powers that be are trying to blame others for the problems they themselves created, including our massive debt from endlessly overspending and foreign meddling, to try and deceive Americans from understanding that it’s the Republican and Democrat Congress and the administrations that are at fault.
What a show! I thought Trump had wimped out again and delayed tariffs on Canada and Mexico by another month. Apparently, he misspoke when he said April 2, and they will now start next week. I am looking forward to the great results. Let the Golden Age begin!
Watch out for wallets bursting with cash on the sidewalk April 1.
Who will be Canada’s next PM?
For the last year it looked like it was going to be the Conservative guy, but now, it looks uncertain. Trump changed the narrative. Whoever wins will be the person Canadians think will best respond to Trump’s threats.
!00% correct PapaDave. Funny because we need change badly, same pendulum you were on exiting Biden. But now, change might get delayed, shame about that.
Unfortunate, if so, because it is the Canadian govt creating and attempting to maintain absurdly expensive house prices that is hurting Canada a lot more than Trump could. Canadians are being misled just like Americans.
Was about to be a Conservative by a landslide. With Trump’s magic touch, it is now a tossup.
If he will cut them April or May wall street is going to love him.
We’re just building suspense… isn’t it delicious?
Good
25% tariff on everything until the subjective, unmeasureable demand is met. Plus the goal posts get to move at a whim. I think people know what that resembles.
A banana republic.
So there’s no other place to buy cheap shit than China? If its more expensive to buy from China, goods will be bought elsewhere. What am I missing? Mexico on the other hand is a whole different can of worms.
The US is charging an average tariff of about 3 percent on imports from the EU. The EU charges an average tariff of about 2 percent on imports from the U.S. These are the facts. If Trump would follow is own reciprocal tariff recipe, the US would have to lower its tariff rates vis a vis the EU. Of course, some economic illiterates will claim that the VAT charged by the EU on imports is a tariff. I hope there is need to rebut that one on this site.
Your analysis on VAT is flawed. You are making an assumption that is not true. Can you see what it is? (spoiler alert) The flaw is that when you impose the VAT you assume that the exchange rate stays the same. It does not. A VAT is a proxy for an overregulated, bad workers, socialist country to take a large share of GDP. Investors know this and don’t want to invest in these kind of countries unless the exchange rate weakens. So a VAT acts like a tariff, but the coefficient is not 0 or 1. In my opinion the coefficient is closer to 0.5 to 1. So a 20% VAT is like a 10% to 20% tariff because the dollar strengthens to reflect their socialist, know-it-all, overbearing ways.
Oh, no! I give up (for today). Get a pencil, a piece of paper, and a big mug with coffee, and TRY to work out how a VAT works.
Detroit can sell vehicles manufactured in USA or not sell any vehicles.
The only way Detroit will make good vehicles again is if they travel back in Doc Brown’s DeLorean.
Which was made in the UK.
When Trump said “April”, he likely meant March, but was confused.
He is confused all the time. And we are going to pay the price.
McKinley loved those tariffs too…
Here’s how that turned out:
“Following the adoption of the Tariff Act, McKinley’s Republican Party lost control of Congress in the midterm elections of 1890, and the Ohio representative himself was ousted as the party lost 93 seats in the House of Representatives.
Over the next two years, as voters continued to feel the impacts of the measure and other economic instabilities, the party also lost the presidential election and both chambers of Congress in 1892.”
Poor comparison. Harrison was a failure. Workers had little rights and protection. Teddy Roosevelt was to come. Trump is more like Teddy.
May lose midterm elections but by then things will be on autopilot and the 2028 election is looking good.
Trump administrations in a nutshell:
“Has anyone thought this through?
Of course not.”
LOL. Seems about right.
I don’t need to think. I’m a genius.
In other news, US businesses jacked up their prices by 10 to 25%.
Or they eat the difference and their stock goes down. Winning!