I told you that the tariff madness would turn into madness π€·ββοΈ
For a country that is relaying vastly on imports those tariffs are a very bold move and no, you wont bring entire industries back to the US in a matter of months, not even years. This is the USA's dependency on foreign trade and commerce in a nutshell.
From 30 days ago:
1. Higher Prices for Consumers
Since most importers will pass the increased tariff costs onto consumers, everyday goods will become more expensive. This includes products such as automobiles, electronics, household appliances, clothing, and food items that rely on imported materials or are directly imported from these countries.
Mexican and Canadian Imports (25% Tariff): These nations are major trading partners, supplying a significant portion of cars, auto parts, agricultural products (like fruits, vegetables, and meat), and industrial goods. Consumers can expect price hikes in grocery stores, auto dealerships, and retail stores.
Chinese Imports (Tariffs Rising from 10% to 20%): China is a key supplier of electronics, textiles, machinery, and manufactured goods. Higher tariffs on Chinese imports will make items such as smartphones, computers, and home goods more expensive.
2. Increased Costs for Businesses and Job Market Impact
Many U.S. businesses depend on raw materials and components from these countries to manufacture their products. Higher costs will force companies to either raise prices, reduce profit margins, or cut costs elsewhere, which could lead to:
Job cuts or hiring freezes as businesses try to offset rising costs.
Production slowdowns in industries like automotive, construction, and consumer electronics.
3. Inflationary Pressures
With higher costs on imported goods, inflation is likely to rise. As companies adjust prices, the overall cost of living in the U.S. will increase, reducing the purchasing power of consumers. The Federal Reserve may respond with higher interest rates to combat inflation, making loans and mortgages more expensive.
4. Retaliation and Trade War Risks
The European Union and France have already expressed concerns, which could signal potential retaliatory tariffs. If Mexico, Canada, China, or the EU impose their own tariffs on U.S. exports, American farmers, manufacturers, and exporters could face declining sales, leading to job losses in export-dependent industries such as agriculture and manufacturing.
5. Stock Market Volatility and Economic Uncertainty
Financial markets react negatively to trade tensions. The sharp declines in European markets suggest global instability, which could spill over into U.S. markets. Investors may pull back from stocks, reducing market confidence and potentially impacting retirement funds (401(k)s) and investment portfolios.
---
From February
1. Electronics & Technology
Imports: Over 90% of consumer electronics (smartphones, laptops, TVs, semiconductors) are imported.
Main Suppliers: China, South Korea, Taiwan, Vietnam.
Example: Apple designs iPhones in the U.S., but they are manufactured overseas (mostly in China).
2. Pharmaceuticals & Medical Supplies
Imports: About 80% of active pharmaceutical ingredients (APIs) are imported.
Main Suppliers: India, China, Germany.
Example: Generic drugs are mostly manufactured in India and China, despite being consumed in the U.S.
3. Clothing & Textiles
Imports: Over 90% of clothing and footwear are imported.
Main Suppliers: China, Vietnam, Bangladesh, India.
Example: Most major clothing brands (Nike, Adidas, Leviβs) rely on overseas production.
4. Oil & Energy Products
Imports: The U.S. still imports about 35-40% of its crude oil despite being a top producer.
Main Suppliers: Canada, Mexico, Saudi Arabia.
Example: The U.S. refines imported crude oil into gasoline, diesel, and jet fuel.
5. Automobiles & Auto Parts
Imports: About 50% of cars sold in the U.S. are imported, and about 25% of auto parts are foreign-made.
Main Suppliers: Japan, Mexico, Canada, Germany.
Example: Toyota, Honda, BMW, and Mercedes manufacture many of their vehicles abroad and ship them to the U.S.
6. Furniture & Home Goods
Imports: Around 75% of furniture and home decor are imported.
Main Suppliers: China, Vietnam, Mexico.
Example: Many items sold by IKEA, Wayfair, and Walmart are manufactured overseas.
7. Specialty Metals & Rare Earth Elements
Imports: The U.S. imports nearly 100% of its rare earth elements.
Main Suppliers: China dominates the market.
Example: These elements are critical for smartphones, electric vehicles, and military equipment.