Hello!
In case you live under a rock, the president of the United States Donald Trump has made a huge huge increase on Tariffs to almost all of the countries that are exporting to the United States. The premise of this raise is that the United States are being charged more than they are charging others.
The office has made a calculation that's objectively wrong to justify this nonsense. They are not comparing the Tariffs strictly, they are comparing the deficit of imports and exports that we have between each country and then proposing a new set of Tariffs. They are also calling this "Reciprocal Tariffs", but it's a misnomer.
Donald Trump was naming the day as "Liberation Day", the day when the US are going to brake the chains that the other countries are imposing to the US manufacturers. I sometimes think that we are living in a simulation...
The result
Well, the result is easy to anticipate, just take a look at how the markets have reacted to this new set of Tariffs. Here you have the chart of the S&P 500 from Tradingview:
Markets are in the red, they have been in the red for the last days. Other countries are reacting to this increase in Tariffs with more and more increases. For example, Xina today increased their tariffs to the United States too. This trade war is not going to end well.
I'm not sure if Trump is doing this to try to force the Federal reserve into lowering interest rates or it's simply that they really believe this is beneficial for the United States economy. The ultimate loser here is as always the regular citizen that will see the costs of their products increased as the producers will have to charge more to get the same profit as now.
I hope you have a great weekend!
Posted Using INLEO
And let the trade in wars begin!!!!!!!!!!!!!!! 🤦 I wonder when he'll stop, I doubt it'll be soon. Higher prices for everything... not good for normal people. Trade wars just make life more expensive for everybody