Watch MAGA Host COLLAPSE ON AIR as Trump CRASHES MARKETS
Watch MAGA Host COLLAPSE ON AIR as Trump CRASHES MARKETS
https://www.youtube.com/watch?v=_PRbtA8Bumo
Tag: economy
Making Sense of America’s Tariff Chaos
‘Trump’s tariffs are short term pain for long term pain.
Tariffs will raise the price of the dollar, making U.S. exports more expensive. Other countries retaliate, making U.S. products more expensive. Raising the costs of inputs for U.S. outputs makes American products more expensive. This all hurts exports. These tariffs aren’t an export strategy, they are a self-reliance strategy, and self-reliance means a much smaller economy.’
https://www.youtube.com/watch?v=diHbQWP0bGw
‘If You Compromise With Totalitarian Systems, You Will Pay a High Price’
“instead of trying to decouple unilaterally from China, let’s do it in an organized manner together. Let’s sit together at the negotiation table, because if 300 million Americans impose tariffs, that’s one thing. But if 300 million Americans plus 500 million Europeans and some of the largest economies in the world and other democracies from Japan to Australia are warm-heartedly invited to join, then I think we will have a much better outcome that is very much to the benefit of every non-authoritarian economy, but most importantly, for the U.S.
I would strongly suggest that “America First” will only work if it’s not America alone. And there are some issues where America will need partners in order to have the ultimate leverage, and I think that leverage would be increased by joining forces.”
https://www.politico.com/news/magazine/2025/01/18/mathias-dopfner-trump-europe-trade-00199102
EU wields ‘sledgehammer’ against Trump tariffs
“The European Union hit back hard as U.S. President Donald Trump imposed 25 percent global steel and aluminum tariffs on Wednesday, announcing a two-stage retaliation covering €26 billion in EU exports that far exceeded a trade fight that blew up in his first term.
The European Commission said it would, from April 1, reimpose tariffs in response to €8 billion in U.S. tariffs — including on iconic American products such as Harley-Davidson motorcycles, bourbon and jeans. And, from mid-April, it will set further countermeasures over €18 billion in new U.S. tariffs, subject to the approval of EU member states.
“We deeply regret this measure,” European Commission President Ursula von der Leyen said in an early-morning statement.”
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“The 27-nation bloc — a common market spanning 450 million people — wants to send an unmistakable message that the EU is serious about defending its economic interests should Trump launch a full-scale trade war.”
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“The Commission left the door open to a deal with Trump, saying it “remains ready to work with the U.S. administration to find a negotiated solution” and adding that its measures “can be reversed at any time should such a solution be found.””
https://www.politico.eu/article/eu-tariffs-donald-trump-diplomat-eu-war-defending-nation-bloc/
The Way Out of Our Inflation Mess
“It’s important for the new administration to understand that controlling inflation requires more than Federal Reserve action. It demands fiscal discipline. That means difficult choices that politicians typically avoid. Federal spending must be curtailed, particularly in entitlement programs. Tax revenues must be made stable and predictable. Most importantly, the administration must reject new spending, regardless of the apparent merits. Finally, more tax revenue through more growth—made possible by the improved tax system and deregulation—would help.
Continuing to ignore fiscal-monetary interactions and hoping inflation will mysteriously moderate risks a crisis that could dwarf any challenges we face today. Fiscal responsibility isn’t just about balancing books; it’s about maintaining the stability of the dollar and the prosperity of the American people. History tells us that the longer we wait, the more costly the eventual solution becomes.”
https://reason.com/2025/01/16/the-way-out-of-our-inflation-mess/
CHINA USA CANADA MEXICO EUROPE Trade War Erupts
An immediate impact of tariffs is increased prices. Paying more means less money for other purchases and investments. Less purchases and investments means a smaller economy than there otherwise would be. A smaller economy means less wealth and jobs for most people.
https://www.youtube.com/watch?v=dQNMksYweWU
Trump’s Trade War With America’s Neighbors Is All Cost and No Benefit
“Trump and his allies believe tariffs are the key to all sorts of wondrous economic outcomes that will make America more prosperous. In his speech to Congress on Tuesday night, Trump said that tariffs “are about protecting the soul of our country,” whatever that means.
But even if you buy those arguments, it should be obvious that tariffs being implemented and then immediately withdrawn (for the second month in a row) will not produce the promised benefits.
They won’t generate revenue for the government, won’t cause businesses to alter their supply chains, and won’t stop the flow of illegal drugs. It’s the equivalent of looking at a river, declaring your intention to build a dam, and then expecting the river to become a reservoir.”
https://reason.com/2025/03/07/trumps-trade-war-with-americas-neighbors-is-all-cost-and-no-benefit/
Trump’s tariffs are already rattling California’s tech sector
“Tariffs on Chinese goods like manufactured parts and chips “are going to make the production process more complicated and more expensive,” said economist Christopher Thornberg with Beacon Economics.
Thornberg said California companies that rely on those materials like Apple and Nvidia, which makes highly sought-after chips essential for training AI programs, will be able to absorb the costs “because of the mountain of profits they are sitting on.”
The longer the trade spat goes on, though, the more likely knock-on effects like higher consumer prices, but also bites out of the budget, become as companies absorb increased costs.”
https://www.politico.com/news/2025/03/05/trumps-tariffs-are-already-rattling-californias-tech-sector-00213828
Opinion | Trump Needs to Drop the EU Trade War and Face the Real Enemy
“The trade deficit is huge. It stands at $235.6 billion — a 12.9 percent increase since 2023. EU countries impose an average 5 percent tariff on U.S. goods, while the U.S. imposes an average 3.3 percent tariff on European goods. Even worse, the EU collects a 10 percent tariff on car imports — that’s four times America’s 2.5 percent.”
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“This has to change — and it can — but not through a tit-for-tat race to higher tariffs. Rather, we need to lower tariffs and observe symmetry. Ideally, EU-U.S. trade would be tariff-free. However, if that’s unachievable, tariffs should be, on average, 2 percent on both sides. That would create a huge stimulus for both economies, and it could be the basis and precondition for what is existentially necessary: a common trade strategy on China.”
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“If Trump is serious about “America First,” there’s one thing he should come to terms with — it shouldn’t mean “America Alone.” More leverage at the negotiating table with China, a healthy U.S. economy without inflation, and a prosperous Germany that could turn around a stumbling EU would be in the interest of the American people and Europe.”
https://www.politico.com/news/magazine/2025/03/03/u-s-eu-trade-war-china-00206789
US employers cut more jobs last month than any February since 2009
“The Trump administration’s massive federal cuts and swelling feelings of economic uncertainty helped fuel a recession-level spike in layoff plans last month, new data showed Thursday.
US-based employers last month announced plans to slash 172,017 jobs, a 103% increase from a year ago and the highest February total since 2009”
https://www.yahoo.com/news/us-employers-cut-more-jobs-123633464.html