One other point with Motherfucker Krasnov's alleged "win" on tariffs

[Aviation Pro]

The 30% figure is paid by the importer, if you don't think several convenience fees won't be applied to a product as it wends its way to a consumer, you are being naive. So, that $100 product that should have cost $130 with the sales tax applied will probably end up costing $145 after the middle takes its cut.

Motherfucker is such an economic "genius."

[SheltieLover]

1. At least $145!

[BOSSHOG]

2. Our President is kicking some Chinese Ass. Yeehaw!

The Art of the Dumb. Cause he ain’t got nothing else. Americans are stockpiling for the inevitable because our President is kicking Chinese Ass. My Country tis of He!

[underpants]

3. That's for one product. Let's say it's sold as it's shipped

Is the Dollar Store which is already $1.25 now going the be $1.50?

If items are just components to make the end sellable product multiply all the parts coming in from wherever.

[Aviation Pro]

4. Yes, my example was simplistic

But it gets the point across.

Also, Motherfucker can't lower drug prices by fiat, so be prepared to pay more for prescriptions.

[underpants]

6. My wife: "As much as it often sucks, this IS capitalism. Don't they know that?"

She said that when I told her about his social media post.

Nixon froze all prices in 1971. Capitalism don't bend like that.

Nixon froze prices in 1971. All prices.

https://en.wikipedia.org/wiki/Nixon_shock

The Nixon shock has been widely considered to be a political success but an economic failure for bringing on the 1973–1975 recession, the stagflation of the 1970s, and the instability of floating currencies.

[Johonny]

7. Is not the damage done

Basically you have small companies already ravaged by the threat of the tariff and large companies willing to stretch inventory out as long as possible. Why pay 30 % today when it might be 10 percent in 90 days. Trump economic chaos is still awful. Then there is the huge Canadia and Mexico tariffs still in play.

[JohnSJ]

8. right on analysis of the situation AP.

[Ol Janx Spirit]

9. It's interesting that at the moment a lot of businesses do not seem to be...

...just passing the tariff increase straight to the consumer as you might think they would. Many seem to be absorbing at least part of it or splitting it with the customer to keep their business. Some more R-friendly companies are even hiding the cost from their customers to save face for the Administration--or avoid their punishment if they are large enough of course.

As always, larger importers will also be able to negotiate a lower price from manufacturers that will make the product and tariff costs lower than their competitors for the same exact item. They also likely have a lot more inventory on hand to help soften any immediate cost increases. We always hear how small business is so important, but when it comes to actually supporting it you can usually bet the politicians will give all the breaks to large ones. Typically, these tariffs will hit small businesses the hardest. They are less able to absorb cost increases, and they have little to no ability to negotiate prices based on volume.

However, over time this become unsustainable even for larger importers. The markets demand profits, and sharing the cost of tariffs with your customers eats into those. The cost increases also erode your customers' ability to buy more products--so even less profits. We are still early in an adjustment period that does not fully reflect the cost of the tariffs either to the consumer or on profits as everyone tries to soften the blow and continue to do business as usual, but that is only going to last so long. Eventually the data and the quarterly reports and the job numbers begin to show the ugly realities of this trade war and at some point it will make more sense to stop hiding it and let the blame fall where it may....

[Bev54]

10. It is not even a deal it is only an agreement to talk

About tariffs. Just like the UK it is only a “concept” of a deal.

[Hornedfrog2000]

11. Hes getting a piece of action

On every single thing coming in the country. Plus he can tax companies/industries/competition he wants to put out of business

[Jarqui]

12. It is well beyond the 30% figure

Price markups are often a percentage of landed cost

so a landed cost of $100 marked up 50% is $150
a landed cost of $130 (with tariff) marked up 50% is $195
That is going to happen some as they have to cashflow their increase in inventory investment and maybe higher storage/carrying costs as everyone tries to stock pile and interest rates climb.

If all the item's components are tariffed, then the total collective item cost & markup goes up accordingly or could cascade.

But the much bigger issue is at the top. Trump has shaken confidence in the world markets.
Who wants to build a factory or invest under these circumstances - because you can no longer be sure of where is best?
A bunch of investment money is going to get pulled off the table until people around the world figure out what the new rules of the trade roads are going to be.

A bunch of the world rationale will be "let's avoid the POTUS nut in the US and we'll do side deals between ourselves excluding the orange felon ..."

Look at what Boeing is going through - potentially getting hammered from China, EU, maybe Canada, etc.
Or John Deere who just shut 5 US plants.
Everyone looking at building something or in construction is going to hang onto their cash because costs and cashflow are so uncertain. Or a bunch of construction projects are going to get cancelled and jobs will be lost accordingly.

At the same time, government jobs are being chopped and dollars for research, education, social security, etc and it looks like healthcare are getting chopped,

With depleted inventory, a stimulus won't be able to correct a recession as quickly because some of it will have to wait until inventory gets replenished before its benefits kick in.

It is a dangerous game that Trump can't win. Where big tariffs are erected, the world markets will adjust to go around those tariffs. The winners are the countries not involved in the tariff war while the losers are the countries primarily involved in the tariff war.

What is the US trade deficit anyway: it is the US collectively deciding to buy products from other countries at the best price. Trump doesn't talk about the countries the US has a trade surplus with ...

It is a self-inflicted mess.