Tariff Mayhem and Capital Flight
Tariff Mayhem and Capital Flight
https://www.youtube.com/watch?v=jHkg5o52XW8
Tag: trade
Her Business Was Thriving. Then Came the Tariffs.
Trump’s China tariffs are destroying this small business.
When starting the business she looked into manufacturing in the U.S., but no U.S. factory would accept such a small order. Today, the price, requirements, and availability of source materials make manufacturing in the U.S. prohibitive.
After Trump’s election, she prepared for 20 percent tariffs, but Trump’s 100 plus percent tariffs are destructive.
https://www.youtube.com/watch?v=v3pfM5v0F9U
Tariffs Failed in the Middle East—America Shouldn’t Make the Same Mistake
“Take Egypt: In 2016, facing fiscal pressure and public dissatisfaction, the government raised tariffs on hundreds of imported goods—everything from electronics to household furniture. The stated goal was to protect domestic industries and reduce reliance on foreign goods. The outcome? Inflation soared, local industries remained stagnant, and Egyptian consumers were left paying more for lower-quality products. The government hoped tariffs would nurture innovation; instead, they strangled competition and punished ordinary people.
In Iraq, where the state has tried to rebuild its shattered economy after years of conflict, officials implemented tariffs to supposedly boost “national production” and replenish government coffers. But in a country where corruption runs deep and borders are porous, the policy only incentivized smuggling and rent seeking. Goods flowed illegally across borders while customs officials took their cut. Meanwhile, consumers bore the cost, and genuine economic growth never came. Tariffs there didn’t protect industries—they protected the corrupt.”
https://reason.com/2025/04/10/tariffs-failed-in-the-middle-east-america-shouldnt-make-the-same-mistake/
USA Trade War Escalates
Despite the tariff pullback, Trump tariffs are still very high!
https://www.youtube.com/watch?v=Dt8RGkgHKwo
Tariffs, Decline, and the Promise of AI | A Conversation with Larry Summers and Niall Ferguson
Tariffs are a bad policy based on a misunderstanding of economics. Even if you have a protectionist mindset, Trump’s tariffs make no sense because they don’t focus on tariffs goods that we could produce and provide our consumers; they focus on inputs to things we want to produce like steel, aluminum, and autoparts. Many more people use steel and aluminum that produce it. This makes tariffs bad before we even consider retaliatory tariffs from other countries.
The uncertainty of what tariffs will look like prevents businesses from investing and consumers from making large decisions, causing further damage.
https://www.youtube.com/watch?v=Sy-fn5MWFIk
Stock market today: Nasdaq falls 6%, Dow loses 1,700 points, S&P 500 drops 5% as markets crumble with Trump’s tariff war turning to China
“”The trade war is now turning into a direct confrontation between the US and China … we could again be seeing escalation and de-escalation at the same time, pulling markets in different directions,” Rabobank analysts said.
And though a wider trade war is on hiatus, risks remain to the health of the US economy, and Trump’s move is “merely the end of the beginning,” according to JPMorgan.
Other parts of the president’s trade-policy overhaul are still in effect, including a 10% baseline tariff on most trading partners, 25% duties on steel and aluminum imports, and 25% duties on auto imports. Those elements could still lead to consequences analysts have warned about, such as rising prices and slower economic growth.”
https://finance.yahoo.com/news/live/stock-market-today-dow-tanks-1300-points-sp-500-nasdaq-slide-as-focus-turns-to-trump-tariffs-on-china-133050269.html
EU takes revenge on Trump’s tariffs as countries approve €20B+ retaliation
“The EU can apply retaliatory tariffs on nearly €21 billion of U.S. products like soybeans, motorcycles and orange juice after the bloc’s 27 countries assented to the measures on Wednesday, the European Commission announced.
“The EU considers U.S. tariffs unjustified and damaging, causing economic harm to both sides, as well as the global economy. The EU has stated its clear preference to find negotiated outcomes with the U.S., which would be balanced and mutually beneficial,” the EU executive said in a statement.
Hitting back against U.S. President Donald Trump’s steel and aluminum tariffs, the European Union’s countermeasures will apply in three rounds. Measures covering €3.9 billion in trade will go into force next week, with a further €13.5 billion from mid-May and a final round of €3.5 billion following in December.”
https://www.politico.eu/article/eu-takes-revenge-on-trumps-metals-tariffs-approved-as-countries-close-ranks/
San Antonio’s mayor worked to build a strong relationship with Canada. Tariffs would decimate its economy.
“San Antonio sends almost half its exports to Canada, which makes the Texas trade hub one of the most vulnerable U.S. cities in the tariff war.
Mayor Ron Nirenberg says one in five jobs in his state is exposed by President Donald Trump’s new tariff regime — “300,000 jobs immediately on the block.””
https://www.politico.com/news/2025/04/09/san-antonio-mayor-canada-tariffs-00280571
Trump pauses tariffs
“President Donald Trump on Wednesday announced a 90-day pause of the higher tariffs against 60-odd trading partners that went into effect earlier Wednesday, with the exception of China — an abrupt reversal of his market-rattling trade policy.
Trump, in a Truth Social post, said he plans to keep the administration’s global baseline tariff increase of 10 percent in place for all countries.
But tariffs he imposed on China will continue to rise, Trump wrote, increasing to 125 percent, due to Beijing’s continued retaliation.”
https://www.politico.com/news/2025/04/09/trump-pauses-tariffs-00281494
1 big thing: Tariff price hit could come in June
“The trade war is likely to cause fewer jobs and higher prices, a top Federal Reserve official tells Axios. But price hikes may not show up until the summer, as companies work through pre-tariff inventories.”
https://www.axios.com/newsletters/axios-macro-09e3a1e0-1552-11f0-83cf-49dc76e25121.html?utm_source=newsletter&utm_medium=email&utm_campaign=newsletter_axiosmacro&stream=business