Trump’s new tariffs on China, Mexico and Canada go into effect today. He’s also promised there will be more new tariffs on European and Asian countries. When questioned repeatedly, he finally acknowledged that, “We may have in the short term, a little pain, and people understand that…”
Several different analyses estimate these tariffs would cost the average US household $800-$1600 per year. I have a hard time believing it will be this low.
First, whatever the tariffs add in costs would be passed on directly to the customers.
Second, every middleman will mark up the cost “just a little bit” to take advantage of the opooruntiy to raise prices and blame someone else (similar to what the grocery stores have done with food – claiming supply chain issues and inflation to justify raising their prices far beyond those impacts).
Third, all prices will go up. Some because businesses will pay more for parts and supplies from China. Some because businesses will have to pay more if they purchase parts/supplies from US source. And some because businesses will raise their prices for increased profit, conveniently using the excuse of increased costs due to tariffs even if they are not impacted.
I need new tires this spring and fully expect they will be 30% more than they were last year. If you’re buying clothes, electronics, furniture or almost anything from Walmart, Target, Amazon or other online retailers, everything you buy will be at least 33% more expensive.
“We may have a little pain…”, says Trump.
He won’t have any pain. Neither will his cronies, the oligarchs, the upper class and the billionaires. They will hardly notice the price of consumer goods, gasoline or basic necessities.
We – the normal people who occupy lower and middle classes – are going to feel the pain. I expect to hear stories of people cutting back on purchases, food, healthcare, travel and more. They’ll have no choice as prices continue to go up.
I’ll be doing the same. Since I’m already anti-consumerist and live quite frugally, I have less to cut back on and will be forced to pay the increased prices for my now basic necessities.
I am not happy about the tariffs but since I can’t do anything about it, I’ll deal with it.
Buckle up.