CaughtInThe
DP Veteran
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Well, and everyone else too. He's screwing us all and it's only just begun.
From the article (I added bullets to the last thing for readability)...
"It’s Aug. 1, meaning we’ve arrived at the Trump administration’s self-imposed deadline for countries to agree to trade deals with the United States or face even higher new tariffs. Late Thursday, the administration said those tariffs will now go into effect on Aug. 7. It was never going to get anywhere close to hitting the original goal of “90 trade deals in 90 days” — actual trade deals are highly detailed documents that take months, if not years, to complete. But passing such deals was never the goal. What the administration meant was that it would, by today, set tariff rates on our trading partners.
...
For the Trump administration, trade deals mean something quite different. It starts from the wholly incorrect premise that if we buy more from you than you from us, you are “ripping us off” and must be punished (Brazil is an exception, as Trump wants to punish the country for prosecuting former President Jair Bolsanaro after his attempted coup).
...
Though it took a while, we now have solid evidence that the trade war is raising prices. You’d expect tariffs to show up in inflation rates for goods (tangible products you can own, like shirts or microwaves) as opposed to services (activities like haircuts or a doctor’s visits). A few months ago, goods inflation was around zero; now it’s tracking 3%. As a Washington Post headline put it: “Shoppers are stressed, but some brands are raising prices anyway.”
...
For three reasons, I believe we’re seeing only the tip of a spear that’s pointed right at our wallets.
From the article (I added bullets to the last thing for readability)...
"It’s Aug. 1, meaning we’ve arrived at the Trump administration’s self-imposed deadline for countries to agree to trade deals with the United States or face even higher new tariffs. Late Thursday, the administration said those tariffs will now go into effect on Aug. 7. It was never going to get anywhere close to hitting the original goal of “90 trade deals in 90 days” — actual trade deals are highly detailed documents that take months, if not years, to complete. But passing such deals was never the goal. What the administration meant was that it would, by today, set tariff rates on our trading partners.
...
For the Trump administration, trade deals mean something quite different. It starts from the wholly incorrect premise that if we buy more from you than you from us, you are “ripping us off” and must be punished (Brazil is an exception, as Trump wants to punish the country for prosecuting former President Jair Bolsanaro after his attempted coup).
...
Though it took a while, we now have solid evidence that the trade war is raising prices. You’d expect tariffs to show up in inflation rates for goods (tangible products you can own, like shirts or microwaves) as opposed to services (activities like haircuts or a doctor’s visits). A few months ago, goods inflation was around zero; now it’s tracking 3%. As a Washington Post headline put it: “Shoppers are stressed, but some brands are raising prices anyway.”
...
For three reasons, I believe we’re seeing only the tip of a spear that’s pointed right at our wallets.
- First, Trump is escalating the fight.
- Second, the Post article points out that big companies such as Procter & Gamble and Walmart are explicitly raising prices because of tariffs.
- Third, there were two buffers that heretofore sheltered consumers, both of which are eroding. One was the inventory buildup that started when Trump returned to the Oval Office, as importing firms aggressively stocked up ahead of the tariffs. The other was squeezing profit margins built up during the pandemic to avoid immediately antagonizing inflation-weary consumers."