Trump's tariffs to raise prices

[faysalaaa 5,336]

6 minutes ago, SpadesToStart said:

Call me crazy, but I wouldn’t call “not fascism” an empty offer when the alternative is fascism. 

Even beyond that, the Harris campaign offered real, actionable solutions to cost of living issues, while Trump’s economic plan boils down to 

Step 1. Tariffs

Step 2. ????

Step 3. Profit

 

Well "fascism" is an option to these people because Democrats and Republicans offers have been empty.

Remember, Trump did not only go against Democrats, he even ended the Republican Party, and took advantage of peoples rage against the system.

Democrats want to show voters that hes the bad guy, but thats the whole point, they want to elect the bad guy to say **** you to the system.

[27monster27 15,869]

1 hour ago, Bronco said:

You're imagining a situatuon though where domestic producers are in a position to immediately bring everything inhouse and cut off completely from foreign suppliers.

They aren't. And to build all the necessary infrastructure will cost billions, if not trillions of dollars in investment. And even were that kind of cash flow available to the businesses they would still need the years to build it and ultimately perfect it. 

Trump's tarrifs allow for none of that. They introduce an immediate business cost spike to any business that imports literally anything necessary for its business. Which then means those businesses first need to adapt their practices to bring themselves back to profit. 

Which will require price rises, wage cuts & job losses - which will spike inflation. The spike in inflation will lead to a spike in interest rates making the availability of capital collapse. Without easy access to capital businesses will not be able to pay the cost of inhousing business. If the tariffs are sustained rather than quickly abandoned, then simply put many businesses domestic and international will collapse. And when large-scale bankruptcies happen, banks go under as well taking everyone's pensions and savings with them. 

Protectionist tariffs have never worked in global economic history. The key to insourcing production for a nation is tax incentives & state assistance. Not state attack. 

Wow, so people are 100% correct in saying that this will lead to The Great Depression 2.0 if left unchecked.

I don't think Trump being known as Hoover 2.0 (as satisfying as that would be) could outweigh this burden of this at all. Fvck him and anyone that willingly chose him!

[Ladle Ghoulash 53,147]

14 minutes ago, faysalaaa said:

Well "fascism" is an option to these people because Democrats and Republicans offers have been empty.

Remember, Trump did not only go against Democrats, he even ended the Republican Party, and took advantage of peoples rage against the system.

Democrats want to show voters that hes the bad guy, but thats the whole point, they want to elect the bad guy to say **** you to the system.

And they’ll be the first to complain when the chickens of fascism come home to roost 

[faysalaaa 5,336]

20 minutes ago, Ladle Ghoulash said:

And they’ll be the first to complain when the chickens of fascism come home to roost 

Not really, I think most of will engage with fascism, nobody will come home to the Democratic party to roost. 

[AsleepOnTheCeiling 6,974]

7 hours ago, Morphine Prince said:

Yes, that's exactly what I've noticed. Republicans tend to vote for more selfish reasons (whether they're correct about those reasons or not). 

I can speak for myself, a Trump presidency will not largely affect me. But I was still here fighting because I knew it might impact others a lot more. But now I am very demoralized and will just enjoy if things burn. Especially now that he actually won the popular vote, well, you get what you voted for.

Hell, if Trump actually manages the economy well I might even BENEFIT from his presidency (financially), but I still wouldn't support him or anyone associated with him. 

People always think they'll benefit from something because "they're not them" (marginalized group). But eventually everyone that isn't x exact person is the marginalized group. I know you personally are aware of that, you're an intelligent person. But just saying everyone thinks it's the next person over that'll pay the price and not them. 

4 hours ago, faysalaaa said:

I dont understand much about economy, so can someone convince why its a bad idea?

Yes it will raise prices short term, but long term, it will force companies to use American good and keep money domestically.

In Beijing the minimum wage is equivalent to $300 per MONTH.  In the US, it's $1,160 based on a 40 hour work week. So labor input for a product will be 3x. For example a shirt that costs $1 to manufacture in China would cost $3 here. If a retailer profits 30% on the shirt (standard profit margin), they're not gonna eat that $2 it costs extra to manufacture. They're gonna raise their prices to account for that. Also, China will likely in turn raise tariffs as well which will hurt our exports. 

[faysalaaa 5,336]

3 minutes ago, TortureMeOnReplay said:

People always think they'll benefit from something because "they're not them" (marginalized group). But eventually everyone that isn't x exact person is the marginalized group. I know you personally are aware of that, you're an intelligent person. But just saying everyone thinks it's the next person over that'll pay the price and not them. 

In Beijing the minimum wage is equivalent to $300 per MONTH.  In the US, it's $1,160 based on a 40 hour work week. So labor input for a product will be 3x. For example a shirt that costs $1 to manufacture in China would cost $3 here. If a retailer profits 30% on the shirt (standard profit margin), they're not gonna eat that $2 it costs extra to manufacture. They're gonna raise their prices to account for that. Also, China will likely in turn raise tariffs as well which will hurt our exports. 

Okay so the issue is not domestic right? If I understood correctly, you are worried that tariffs might effect people in another country right? I personally agree with you, but I also expect people to only care about their country. Thats why slave labor exists and literally nobody is fighting to end it.

[Franch Toast 27,737]

28 minutes ago, faysalaaa said:

Okay so the issue is not domestic right? If I understood correctly, you are worried that tariffs might effect people in another country right? I personally agree with you, but I also expect people to only care about their country. Thats why slave labor exists and literally nobody is fighting to end it.

Tariffs will hurt people in the US. What people don't understand is that we are still suffering the consequences of the tariffs Trumpf put in place during his first term. 

[faysalaaa 5,336]

4 minutes ago, Franch Toast said:

Tariffs will hurt people in the US. What people don't understand is that we are still suffering the consequences of the tariffs Trumpf put in place during his first term. 

Okay thats why I asked how will it hurt Americans long term? I did not say it will or wont, I just want to know how.

[Helxig 45,366]

Our only hope now is that one of two things happens

1. he screws everything up so badly even his own followers turn against him and the citizens rally to kick him out

2. he simply expires of old age/unealthy lifestyle/added stress

Edit: third alternate option: Melanie decides to finally do what's right and takes the sacrifice for all of the US and the world by giving into her instincts. She goes to jail but she's renowned as the people's princ- first lady for freeing everyone

[BornAsUnic0rn 2,247]

11 hours ago, Bronco said:

The biggest issue is the tarrifs will lead to a 2nd Trump trade war globally and have knock on effects in every economy

Which is exactly what the EU prepared for the last several months, they intensely and fiercely set themselves up to defend and protect their economy and their industries.
 

The EU might actually be more prepared for his trade war than he and his circle are.

[AsleepOnTheCeiling 6,974]

3 hours ago, faysalaaa said:

Okay so the issue is not domestic right? If I understood correctly, you are worried that tariffs might effect people in another country right? I personally agree with you, but I also expect people to only care about their country. Thats why slave labor exists and literally nobody is fighting to end it.

"They're not gonna eat that $2 it costs extra to manufacture. They're gonna raise their prices to account for that". As in if that shirt from my example cost $15 before in a store, it will likely cost $17-$18 in the store after the tariffs are implemented. Tariffs will affect Americans because Americans will either pay the tariff directly for the retailers importing from China, or for the cost of manufacturing the item in the US. I also guarantee you that retailers like Amazon, Walmart, and Target are buying 10x more product right now trying to import as much as possible before a tariff hits and trade war starts. Which will back up the supply chain again, create excess demand in trucking,which will raise the price of trucking, which will also lead to inflation. This is just for cheap items. Imagine things like furniture. Those will be considered luxuries due to tightening budgets, and I would expect several furniture companies to go bankrupt from it.  

 

So in the end we end up with higher prices, lower demand for products, less exports, increased unemployment, and overall inflation. 

[Sepsami 20,976]

16 hours ago, androiduser said:

good, the heterosexual majority needs to pay the price for their choices, hope it gets even worse

What makes u think the gheys don't need to pay for groceries 

[faysalaaa 5,336]

7 hours ago, TortureMeOnReplay said:

"They're not gonna eat that $2 it costs extra to manufacture. They're gonna raise their prices to account for that". As in if that shirt from my example cost $15 before in a store, it will likely cost $17-$18 in the store after the tariffs are implemented. Tariffs will affect Americans because Americans will either pay the tariff directly for the retailers importing from China, or for the cost of manufacturing the item in the US. I also guarantee you that retailers like Amazon, Walmart, and Target are buying 10x more product right now trying to import as much as possible before a tariff hits and trade war starts. Which will back up the supply chain again, create excess demand in trucking,which will raise the price of trucking, which will also lead to inflation. This is just for cheap items. Imagine things like furniture. Those will be considered luxuries due to tightening budgets, and I would expect several furniture companies to go bankrupt from it.  

 

So in the end we end up with higher prices, lower demand for products, less exports, increased unemployment, and overall inflation. 

Isnt Trumps idea is to force Americans, and American companies to start using American domestic goods instead of China? 

[Morphine Prince 109,683]

15 minutes ago, faysalaaa said:

Isnt Trumps idea is to force Americans, and American companies to start using American domestic goods instead of China? 

It’s a fantasy. The US doesn’t and can’t produce everything.

The labor costs alone for US production would skyrocket prices for many products. 

All iPhones are made in China, for example. They’re still expensive, imagine if they were made in the US. 

[faysalaaa 5,336]

5 minutes ago, Morphine Prince said:

It’s a fantasy. The US doesn’t and can’t produce everything.

The labor costs alone for US production would skyrocket prices for many products. 

All iPhones are made in China, for example. They’re still expensive, imagine if they were made in the US. 

Okay that makes sense, thank you for explaining

I agree with you in generally, but I also think iPhones should be made domestically, and people should pay more for it. The market will always adjust and offer solutions for people that cant afford it. iPhone slave labor is insane, and nobody should be okay with it.