"ECONOMIC NATIONALISM: THE REAL COST TO CONSUMERS"
No matter how many times the GOP and Trump enablers tell you that tariffs are the panacea to all our issues; it is not. It is a policy that we cannot afford to ignore!
Tariffs. The magic wand of economic policy that politicians love to wave around, promising prosperity and protection for the American worker. But let me tell you, as someone who's seen the inner workings of the Trump administration up close, these tariffs are about as effective as a Band-Aid on a bullet wound.
So, let me break it down for you. Tariffs are essentially taxes on imported goods. The Trump administration, in its infinite wisdom, has slapped a 25% tariff on goods from Canada and Mexico, and jacked up the existing tariffs on Chinese imports. Now, you might think, "Great! We're sticking it to those foreigners!" Wrong...It's not that simple.
Take Canadian lumber, for instance. The U.S. has been importing softwood lumber from our neighbors to the north for years. It's a crucial component in homebuilding. Now, with the new 25% tariff on top of the existing 14.5% duty, we're looking at a whopping 40% tax on Canadian lumber.
Now, you might be thinking, "So what? That's Canada's problem, right?" Wrong again. Dead wrong. Who do you think ends up paying for this? It's not the Canadian lumberjacks, I can tell you that much. It's good old Joe and Jane American, trying to build or buy a new home.
The National Association of Home Builders is practically tearing their hair out over this. More than 70% of the softwood lumber used in U.S. construction comes from Canada. With these tariffs, building costs go up, new development gets discouraged, and guess who foots the bill? That's right, now you’re catching on…the American consumer. You and me.
And, as the Trump infomercial saying goes, but wait, there's more! Let's talk about petroleum. Canada supplies a significant chunk of the U.S.'s crude oil. Now, with a 10% tariff on Canadian energy products, we're looking at potential price hikes at the pump. Some experts are predicting a 10 to 20 cent increase per gallon. That might not sound like much, but multiply that by the number of times you fill up your gas-guzzling SUV, and suddenly you're talking real money. And wait! I was under the impression that within 24 hours of Trump assuming office, we, the American consumer, would see drastic reductions in the price of gasoline and groceries.
And let's not forget about fertilizer. Not the bullshit emanating from Commerce and the administration, but real manure. Canada is a major supplier of fertilizer to the U.S. With these new tariffs, American farmers are going to be paying more to grow their crops. And who ultimately pays for that? You guessed it; this is not hard to comprehend, the consumer when they're buying their overpriced avocado toast at their local café.
Now, here's where it gets really interesting. You see, other countries don't just sit back and take it when you slap tariffs on their goods. Fuck no…they hit back. And boy, have they hit back.
Canada, bless their polite hearts, has announced retaliatory tariffs on over $100 billion worth of American products. Mexico and China are following suit. It's like a giant game of economic whack-a-mole, except the only ones getting whacked in the ass are the consumers on both sides.
So why is the Trump administration doing this? They claim it's to combat drug trafficking and illegal immigration. That’s a lie. As someone who's been in the room where it happens, it's more about ego and the illusion of control than any real economic strategy.
Trump loves to boast about how tariffs are a "very effective tool". But effective for what? Raising prices for American consumers? Straining relationships with our closest trading partners? Triggering a trade war that nobody wins? Or maybe, just maybe, it’s to destroy the Canadian economy and create such a dire situation that Canadians take Trump up on his very generous offer to become America’s 51st state?
The reality is, these tariffs don’t work. They're a simplistic solution to complex problems, and they ignore the fundamental realities of global trade. But, here's the truth: All of this economic maneuvering, all of these tariffs and counter-tariffs, they all trickle down to one place; your wallet. When companies have to pay more for imported goods, they don't just absorb that cost out of the goodness of their hearts. No. They pass it on to us, the consumers.
So the next time you're at the hardware store, wondering why lumber prices have skyrocketed, or at the gas pump, wincing at the price per gallon, remember: This is what "winning" looks like in the Trump tariff tango.
In the end, these tariffs are like a bad magic trick. The administration waves its hands, makes a lot of noise about protecting American interests, and hopes you don't notice that it's your money disappearing from your pocket.
Then again, who am I to criticize? I'm just a guy who knows the wizard behind the curtain, pulling the levers of this economic Oz. And let me tell you, it's not a pretty sight. We are already experiencing the fallout with approximately 2000 point drop in the Dow as a result. And i fear, this is just the beginning. So, say adios to your 401k and savings.
So the next time you hear about new tariffs being imposed for your benefit, know this; the only thing these tariffs are protecting is the ego of the guy imposing them. Your wallet? That's on its own.
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Real leadership would be to embrace the whole of North America as a common market, with shared principles and values and a deep pipeline of intermingled production capacity. Mexican farms keep our grocery shelves stocked with fresh fruit and vegetables even in winter. Canadian oil heats our homes and powers our automobiles,’its lumber builds our homes. Its nickel mines empower defense industry. Etc. We have a common adversary, China, with its artificially subsidized industry and IP espionage. The root of our fentanyl problem is with China’s production of its precursor chemicals and gleeful export of the same. With Mexico’s cooperation we could cut it off at the source before the cartels’ involvement. Thanks, Michael, for your strait forward parsing of Trump’s deliberate and malevolent ignorance.
Thank you, Michael. Your insight and comments are invaluable You were in the belly of the beast and survived to tell about it. What a blessing!