Quote:
Originally Posted by ajw45
1. China, EU, whoever only has a trade war with the US, the US is creating a trade war with EVERYBODY. Maybe a bully can has an advantage in a 1:1 or 1:2 situation but they can't pick a fight with the whole class at the same time. The idea that this economy is weak or that economy has more to lose works in isolation but in aggregate tariffing all countries at the same time puts the US at a huge disadvantage.
2. Trade is complicated. As mentioned above, there are non trade retaliatory steps that can fundamentally break the system like the impact on treasuries. We haven't even seen the systems that will begin to stress or get broken.
3. To those saying just give it a few weeks, that's nonsense. Supply chains are continuously moving, Walmart doesn't have warehouse they just have trucks and boats in continuous motion. Price impacts will be quick and once those supply chains break down job losses will follow as we've already seen with some of the auto mnfrs and those don't come back online quickly.
One thing the administration doesn't seem to comprehend is how much this is costing. Weeks, months of disruption is a massive cost on a global scale. Trillions of cost to make a couple hundred billion in tariffs.
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Absolutely correct. Well put.
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