milfchaser said: Raven2005 said: 25%.
Canada & Mexico.
10%
China.
Wonder if this part of America's people,under Trump control, will like the higher prices...
Next expected hit will be Europe.
Some prices have been higher in the EU countries for a while, especially Germany, where I have some online friends. Gas is available, but expensive, they say. Some of it is undoubtedly related to the Ukraine War. Probably some food prices are up because of the war as well. A lot of company bankruptcies and layoffs in Central Europe as well -- can't be related to Trump being back in the WH as it's been going on for a while in Europe.
Tariffs could make it all worse, though, especially if countries don't figure out how to negotiate. Negotiation seems to be a dirty word in geopolitics.
Tariffs will make prices worse. It is proven economic theory by the pass and even Trump knowledges that.
Pre-Trump prices increased because of imported inflation as well as wars. Wars cause insurance companies to raise their premiums on insuring ships. Shipping companies then base that cost on to their customers who subsequently base it onto their customers and ultimately it ends up costing the end user.
The increase in fuel raises costs (which by the way the United States still is really cheap) and due to shipping costs raising it further increases prices.
It’s a cycle that is hard to get out of.
On the subject of tariffs; once upon a time these were held out in economic theory as being a good thing, which would have been around the time Trump (& his economic advisors) went to school; however, economic theory has long held (probably for the last fifty years) that tariffs are bad for the economy both domestically and internationally.
The underlying issue is that it is reasoned that tariffs will increase prices increased because in a country resulting in a business supplying the product as the profit margin is good.
There are a number of flaws in that the profit is inflated due to the tariffs and once removed the domestic product will be too expensive and also that it takes time to establish an operational business in the tariff imposing country.
Take steel for example; if you rundown plants and close them it takes time to recommission them. Previous owners may have even scrap all or part of the plants. Then there’s the qualified workforce required (robots can only do so much) and other infrastructure.
It takes even longer for countries that never had any dealings with the industry previously.
When businesses can find supplies overseas they will turned to that. The domestic market will turn to different industries including services - IT for example. Some countries are able to do both like India.
It’s the mindset of business owners that needs to change for the betterment of the citizens of their country: I.e.: be prepared to make a smaller profit.
Ultimately it is the free market determining the price and outcomes. As well as investors in determining where they invest. Where costs are low and income high is where investors will place the funds.
Rather than tariffs, governments are better off providing subsidies. These would have a lesser effect upon the population. Although subsidies also is a dirty word in economic theory now.
HE'S BACK ! ! !
👽
He's back
