'Panic': Trump's paused tariffs are already inflicting 'long-lasting damage' -- here's why

[C_Clayton_Jones]

‘Many economists, both left and right, cringed when President Donald Trump ordered 25 percent tariffs on all goods being imported into the United States from Canada and Mexico. And the outcry was vehement from neighboring officials north and south of the United States.

Former Canadian Deputy Prime Minister Chrystia Freeland slammed the tariffs as "a betrayal of America's closest friend," and Mexican President Claudia Sheinbaum vowed to impose tariffs on U.S. goods in response.

Trump later agreed to delay the tariffs on Canada and Mexico by 30 days, and many economists are hoping he won't go through with them at all. But The Atlantic's Lora Kelley, in an article published on February 7, argues that the mere threat of tariffs is already inflicting damage economically.

Trump, Kelley notes, "caused a panic in the stock market," adding that "the residue of this week's blink-and-you-missed-it trade war will stick."

Ernie Tedeschi of the Yale Budget Lab told The Atlantic that "uncertainty about tariffs poses a strong risk of fueling inflation, even if tariffs don't end up going into effect" —adding that "one of the cornerstone findings of economics over the past 50 years is the importance of expectations."’

'Panic': Trump’s paused tariffs are already inflicting 'long-lasting damage' — here's why

Many economists, both left and right, cringed when President Donald Trump ordered 25 percent tariffs on all goods being imported into the United States from Canada and Mexico. And the outcry was vehement from neighboring officials north and south of the United States.Former Canadian Deputy Prime...

www.alternet.org

The ignorance, stupidity, and incompetence of Trump is truly remarkable.

 

[pknopp]

Trump, Kelley notes, "caused a panic in the stock market,"

Which is why his bluster will be little more than that.

 

[Woodznutz]

The ten percent tariff on Chinese imports has already been felt by my company. I just bought a bathroom sink, made in China, that is exactly ten percent more expensive than the same sink I bought last week. Worse the increase was levied on existing inventory that wasn't subject to the tariff.

That said most businesses do that, raise the price of existing lower cost inventory. It's all greed.

 

[Dekster]

I am not too worried about the stock market long term as I still have a ways to go before I need my 401K money. I have started to tighten up on my discretionary spending back to COVID shut down "good enough" thinking after having become more YOLO in the last year or so. We'll get through it either way. Been selling off a lot of real estate to bank money for three college educations with the last one I plan to do for now closing this month, so we are cashed up for whatever nonsense comes next. I have been staggering the sales over a few years to keep the taxes somewhat mitigated. I feel for people with kids about to go to college who are going to need student loans though. Who knows how that will shake out during Trump's Reign of Terror.

 

[pknopp]

The ten percent tariff on Chinese imports has already been felt by my company. I just bought a bathroom sink, made in China, that is exactly ten percent more expensive than the same sink I bought last week. Worse the increase was levied on existing inventory that wasn't subject to the tariff.

That said most businesses do that, raise the price of existing lower cost inventory. It's all greed.

Trump is about to cave over all of that also.

Trump U-turn on China tariffs after angry shoppers hit with huge fees

 

[shockedcanadian]

‘Many economists, both left and right, cringed when President Donald Trump ordered 25 percent tariffs on all goods being imported into the United States from Canada and Mexico. And the outcry was vehement from neighboring officials north and south of the United States.

Former Canadian Deputy Prime Minister Chrystia Freeland slammed the tariffs as "a betrayal of America's closest friend," and Mexican President Claudia Sheinbaum vowed to impose tariffs on U.S. goods in response.

Trump later agreed to delay the tariffs on Canada and Mexico by 30 days, and many economists are hoping he won't go through with them at all. But The Atlantic's Lora Kelley, in an article published on February 7, argues that the mere threat of tariffs is already inflicting damage economically.

Trump, Kelley notes, "caused a panic in the stock market," adding that "the residue of this week's blink-and-you-missed-it trade war will stick."

Ernie Tedeschi of the Yale Budget Lab told The Atlantic that "uncertainty about tariffs poses a strong risk of fueling inflation, even if tariffs don't end up going into effect" —adding that "one of the cornerstone findings of economics over the past 50 years is the importance of expectations."’

'Panic': Trump’s paused tariffs are already inflicting 'long-lasting damage' — here's why

Many economists, both left and right, cringed when President Donald Trump ordered 25 percent tariffs on all goods being imported into the United States from Canada and Mexico. And the outcry was vehement from neighboring officials north and south of the United States.Former Canadian Deputy Prime...

www.alternet.org

The ignorance, stupidity, and incompetence of Trump is truly remarkable.

Here is the issue, if Trump is going to remake the U.S economy and bring back manufacturing in particular, he has to apply the shift as early as possible. His team must know this. Basically, the longer he waits, the longer the positive impact will be felt.

Over a 4 year period manufacturing will shift and if he only endorses a Presidential candidate who will continue them, then he will succeed, the Middle Class will be restructured and the Swing States will remain GOP, with even a larger gap perhaps. If he waits a year, it will take that much longer for the U.S manufacturing base to reclaim the lost jobs.

He could also advise the American People that he intends to balance the budget and use half of any surplus towards the principle of the debt, half given back to citizens directly in one form or another.

The focus needs to be China by far though. He could hit them with 200% tariffs and they would still be getting a pretty good deal considering all they have gotten away with, stolen etc. followed by Mexico. The only benefit he gets from hitting Canada with tariffs is the jobs Ontario has taken.

 

[pknopp]

Here is the issue, if Trump is going to remake the U.S economy and bring back manufacturing in particular, he has to apply the shift as early as possible. His team must know this. Basically, the longer he waits, the longer the positive impact will be felt.

Over a 4 year period manufacturing will shift and if he only endorses a Presidential candidate who will continue them, then he will succeed. If he waits a year, it will take that much longer for the U.S manufacturing base to reclaim the lost jobs. He could also advise the American People that he intends to balance the budget and use half of any surplus towards the principle of the debt, half given back to citizens.

The focus needs to be China by far though. He could hit them with 200% tariffs and they would still be getting a pretty good deal, followed by Mexico. The only benefit he gets from hitting Canada with tariffs is the jobs Ontario has taken.

Trump said the tariffs were placed on Canada because you all won't quit running drugs into the U.S.

 

[Crepitus]

Trump, Kelley notes, "caused a panic in the stock market,"

Which is why his bluster will be little more than that.

Do you expect him to stop blustering?

If he does the damage will continue.

 

[Crepitus]

Trump said the tariffs were placed on Canada because you all won't quit running drugs into the U.S.

Which is just flat dumb.

 

[pknopp]

Do you expect him to stop blustering?

If he does the damage will continue.

Of course I don't expect it. It's who he is.

 

[shockedcanadian]

Trump said the tariffs were placed on Canada because you all won't quit running drugs into the U.S.

Yeah, I don't accept that. Well played by him but it is a pretext for the tariffs to bring back industries and jobs.

 

[pknopp]

Yeah, I don't accept that. Well played by him but it is a pretext for the tariffs to bring back industries and jobs.

Well played? So he was right? You all are shipping drugs into the U.S.?

 

[shockedcanadian]

Well played? So he was right? You all are shipping drugs into the U.S.?

No. I think someone said you received 9000kg of fentanyl from your southern border and 19kg from Canada.

At the very least, apply a more fair balance of tariffs. We get hit with the same number as Mexico lol

 

[luiza]

The ignorance, stupidity, and incompetence of Trump is truly remarkable.

I could write an OP on the very same subject suggesting the absolute opposite and backed by strong support .

OP and others are simply writing about what they would like to happen .Politically motivated .

Trumpfy is just getting conversations moving and finding ways leading to discourse which nobody can miss .

He did exactly the same with NATO and its financing by member states .

The initially outlandish and hysterical reactions among the bleaters and whiners were soon forgotten as serious discussions and then negotiations commenced .

 

[John09]

Trump said the tariffs were placed on Canada because you all won't quit running drugs into the U.S.

So Trump pardoned the guy who sells fentanyl on his website but issues tariffs on Mexico and Canada for not stopping fentanyl? This is a weird timeline.
February 2, 2025 at 12:29 PM

 

[Thunk]

Now I've heard it all.

The tariffs that didn't happen caused all kind of problems

But the 300,000 Americans killed by democrats open border policy was no big deal.

 

[Darkwind]

Here is the issue, if Trump is going to remake the U.S economy and bring back manufacturing in particular, he has to apply the shift as early as possible. His team must know this. Basically, the longer he waits, the longer the positive impact will be felt.

Over a 4 year period manufacturing will shift and if he only endorses a Presidential candidate who will continue them, then he will succeed, the Middle Class will be restructured and the Swing States will remain GOP, with even a larger gap perhaps. If he waits a year, it will take that much longer for the U.S manufacturing base to reclaim the lost jobs.

He could also advise the American People that he intends to balance the budget and use half of any surplus towards the principle of the debt, half given back to citizens directly in one form or another.

The focus needs to be China by far though. He could hit them with 200% tariffs and they would still be getting a pretty good deal considering all they have gotten away with, stolen etc. followed by Mexico. The only benefit he gets from hitting Canada with tariffs is the jobs Ontario has taken.

More important than that, is that the fact that in a year, everyone will switch into reelection mode and will be reluctant to do anything that will be seen as negative in the hopes of holding onto their seats.

Those people need to be identified and removed from office, but that is the nature of American politics.

 

[jwoodie]

The ten percent tariff on Chinese imports has already been felt by my company. I just bought a bathroom sink, made in China, that is exactly ten percent more expensive than the same sink I bought last week. Worse the increase was levied on existing inventory that wasn't subject to the tariff.

That said most businesses do that, raise the price of existing lower cost inventory. It's all greed.

Companies are free to raise their prices, and you are free not to buy from them. If there is not enough competition from other companies, THAT is the problem. Trump want to increase that competition. What is your solution?

 

[Woodznutz]

Companies are free to raise their prices, and you are free not to buy from them.

Bullseye!

Personally, I don't care what prices are, I don't buy that much stuff. When I buy food or gas, I rarely look at the prices.

 

[Woodznutz]

Companies are free to raise their prices, and you are free not to buy from them. If there is not enough competition from other companies, THAT is the problem. Trump want to increase that competition. What is your solution?

Did I say there was a problem?
My company is awash in profits so $10 more for a sink won't break the bank. The reason is, speaking of the bank, my company has no mortgages, no 'silent partner' siphoning off the profits.