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EC SD | Tariffs announced today start at midnight, so I am waiting for some district court judge to put a nationwide injunction on them by tomorrow... (hopefully not)
In any case, these tariff rates are a negotiation tool. Everyone would like to see both sides lower tariffs and non-monetary trade barriers to more reasonable levels ASAP. Maybe some reciprocal trade agreements can be made, with our best international friends, to go even lower than the 10% floor level announced today. There should be a huge incentive now to negotiate for better terms with the US, so I sure hope we can get back to (nearly) free trade with at least a dozen or more of our best international friends. For those countries that actually hate us, this should be a clear message that we will find other, more friendly, trading partners sooner than later. Like any good relationship, both sides need to treat each other fairly.
Change is hard, and causes anxiety of course. There will be winners and losers with every change. Those companies that have made their living by taking American capital, laying off workers here, and shipping the work overseas to newly-built factories, and countries that decide to have a prolonged trade war, are likely the biggest losers in this change. Workers in construction, energy, finance, manufacturing, and many more, here in USA, along with countries that negotiate lower tariffs ASAP, will be the winners of this change.
Several trillion of investment into moving production to the US has already been announced, so once that money flow starts, it will be a huge stimulus to the US economy. Such a large investment makes a recession in the near future, highly unlikely IMHO. | |
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Tariff issue is hard for me.....
