Why Trump's tariff goals are 'in conflict' with each other
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- เผยแพร่เมื่อ 7 ก.พ. 2025
- President Donald Trump's tariff strategy is scheduled to take effect tomorrow, February 1: 25% on imports from Canada and Mexico, and 10% on Chinese imports.
Yale University Director of Economics Ernie Tedeschi, joins Market Domination to analyze the potential impact on American consumers. These tariffs would "translate to a 0.8% increase in the overall price level" for American households, resulting in approximately $1,300 in lost annual purchasing power, he explains to Julie Hyman and Josh Lipton.
"That's about half a year of normal inflation happening in one fell swoop," Tedeschi, the former chief economist for the Council of Economic Advisors (CEA) under the Biden administration, summarizes. He notes that while grocery prices would rise quickly, durable goods prices would "take some time" to reflect the increases.
Addressing the rationale behind the Trump administration's tariff stance, Tedeschi explains, "I think that he sees it as a way to protect domestic industry and as a way to raise revenue. The problem with that is those two goals are in conflict with one another."
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Cannot wait for his next book, the art of destroying a supply chain
And an 80 global world order
So thanks to the MAGA we now have inflation and a really dumb president.
lol
Yep, we're effed.
We're double totally effed
When did you come to the realization that Trump is dumb. The american public is dumb! Oh so dumb!
No... it's GREAT inflation... MAGA inflation even. It's bigger and better :)
Bigger prices. Better America. More money in billionare's pockets.
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I got into a scuffle for the last bottle of maple syrup at the grocery store.
Why only 10% on China? Could it be due to Musk's Tesla cars being manufactured there ?
I believe they already have around 16/18% tariffs, so an additional 10% is sizable.
@@tom9764these libs just talk out of there ahh
@@sailedship6530 well you know Canada is the real existential threat to America…
Yes, Trump You implemented tariffs on them last time he was in office. I don’t know if it’s an additional 10%
Shanghai mega factory doesn’t export to the US, they mainly produce cars for EU and Chinese domestic market
Since Trump took office stocks market started to go down.
@WhiteLight249 wrong. they were near all time high yesterday. You don't know what you're talking about
fake news
@@WhiteLight249 wrong answer I watch the market all day.
Nobody forces non-US-Americans to buy USA-made products.
Boeing, Tesla, Harley-Davidson, American-food - all of it should be taxed with 25% by other countries- or boycotted.
You've just listed a lot of junk.
They need to strike apple , google , microsoft, netflix, facebook, amazon..... Take the advertising cloud monopoly away from US
You sound like a typical maga Trump supporter. That doesn't actually understand how trade or the economy works. Sadly, i can't even say that your comment was sarcasm.
Regular people are screwed!
Seniors are doubly screwed!
Poor seniors triple screwed. Med price limits being lifted too.
Billionaires will be fine tho, they even get a tax cut👍[/s]
Emm, I'm not an expert, but I do the purchase ledger and stock control for my company. If we get new stock in at a higher cost, and it's the same stock. We increase the list price of all of that stock by the percentage and cost of the new stock. So the prices would start increasing with the first delivery, they just won't get to the full new price until all the old stock is replaced. We don't have the same item listed under two different prices. because of the truck they came in on. That's nuts.
Prices will go up across the board. Any excuse companies have, they use to gouge. Bout to get ugly.
exactly, auto industry will raise them immediately, they will not wait for tariff inventory.
@@tk4c415 yup I agree. I work In auto and I don’t see how many Americans will be buying vehicles when they’re already expensive as is. I guess that is the point trump wants all of these jobs gone from the Canada asap.
yep and more are coming on the EU, semiconductors and steel, copper and aluminum. sell stocks if you have any ppl this is very serious.
@@diamondlion47 I don’t think it’s as serious as the media is making it sound. We won’t see the effects immediately but it’ll definitely result in higher prices and a significant amount of job losses. That being said I like to believe that trump will eventually come to an agreement with Canada within a few months as this doesn’t benefit either country
@@jacobross735 The effects will come very quickly. As soon as we put up those tariffs, the importers are going to have to increase their prices. And those other countries are going to slam us with tariffs too.
The important thing now is for the rest of tbe World to not follow in Trump's steps. The rest of the World needs to continune making free trade deals amongst eachother, making America the odd one out in a World of free trade. Then it'll be easier for the USA to step back into sanity when they finally see that tariffs does'nt work.
That is an extremely valid point that I hope more people and most important, countries, will come to realize and understand.
I will gladly pay 1300 more.and look for American made from this day forward. If it's for the greater of this amazing country...
That’s the kind of uninformed and narrow thinking that will destroy this country. Please read a book… or two.
what is Trump's objective of these tariffs
A return to the glory days of American manufacturing! ...Of course unbeknownst to him and likely most Americans, that only happened with Canada's resources.
He sees himself as William McKinley reincarnated.McKinley embraced tariffs as a way to put money in US government till and he also was expansionist taking Puerto Rico and the Philippines.
Trouble is the world is a vastly different place than it was in 1900
@@BackWordsJane Trump doesn't know who William McKinley is. Hopefully his successor follows McKinley's successor's example in busting big capital. God knows big tech needs busting. As for expanding the US, it took the American-Spanish war to add these territories, he would never start a war ....I'm pretty sure.
These tariffs will hurt working class MAGA and I am THRILLED! Being well off myself, supermarket prices don't affect me. But they will for MAGA.
Being not well off. And not MAGA. I"m just concerned. But I can't say laughing at MAGA will not be fun.
There’s a reason Americans have championed free trade in North America for decades, and it’s not out of goodwill toward their neighbors. Rather, it’s because it has been highly profitable for the United States. It’s astonishing that Trump is willing to wreak havoc on both the North American economy and his own, all because of a fundamental misunderstanding of how economics truly works.
This from a man who graduated from the Wharton School of Business top of his class I'm sure. 😂
@@oldmandan3758 Trump graduated with a BS in Economics, i.e. college level. He didn't continue to the MBA program, although he talks as if he did.
MAGA is already jobless and illiterate , now they’ve to pay this higher prices too 🤣🤣🤣
They will ask for more foodstamps. They will not receive. In fact Trump might cut those programs too.
6 time bankrupt,why people assume he is good for economy? He would bankrupt the country
Look to other markets support Canada don’t buy any US products
There will be pain before victory.
A little confused by this. Particularly China. I think we import more things from Canada and Mexico?
Jerome Powell is slamming his hand on his face rn
It’s going to cause inflation
anyone got a meme
Raegan put a 100% tariff on the japanese 😮
I can imagine companies adding more costs on top of the tariffs. Companies will continue to have record profits. But yes inflation is going up. I understand why Powell is not cutting rates to see the impact of tariffs on the US economy
When is all this going to help increase wages, bring down prices, and get us better, more affordable healthcare? This is what we voted for President Trump to do, and this is what he promised to do. Working-class America is struggling.
NEWS FLASH.He lied to the weak minds that voted for him. He doesn't care about you.
It's not. It's going to push up prices.
He promised a wall last time. Do you honestly believe that moronic conman?
Never. Why would he give two sh!ts about you? Never has and never will.
When the billionaires get their tax cut, that's gonna trickle down on you like a golden shower. Get ready!
What a mess. Thanks Trump.
Consumer tax increase!
Play stupid Trump games. When stupid Trump prizes! Thanks America.
😂😂😂
Will it be a red days the coming week now because of tariffs what is everyone's prediction? And how will sweden stock market be affected? Thanks in advance for answers
Trump is the greatest president of All Time 😊🇺🇸🇺🇸🇺🇸
Wait until you have hyper inflation and you can’t afford to piss
@finkomsky he would never let that happen🇺🇸🇺🇸🇺🇸
@@TheOne-bh9oo he’s making it happen
The fed are the ones that have to prevent it
Do you understand what tariffs do?
You have VERY low standards.
Never heard of FDR? Abe Lincoln? Hell, even Nixon was a better president.
If 1300 USD is minigful, then you don't have any future anyway...
When more than 50% of the American population lives from paycheck to paycheck, that is enough to cause hardship.
The wealth of the US is very poorly distributed.
@@PeterLorimer-ji5ut Then you don't have future, it is so small money...
@MrPetr85 Okay, Elon.
A huge portion of the American population gets by on the lowest minimum wage in the entire Western World.
Don't look. It will destroy your myth about the "American Dream"
@@MrPetr85 A big chunk of your country lives on a minimum wage that is lower in the US than anywhere else in the Western World.
@@PeterLorimer-ji5ut Its talk about the US, right?
This is a reasonable analysis. My question is; what is the impact of the chaos that this creates in markets? How does someone protect their investments?
Take it out. NOW.
Gold. The US share market, dollar and economy about to crash hard.
The largest selling Beers in the world are from Mexico (maybe not for long if the price goes up another 25%) Modelo, Corona, Tecate, Pacifico, Dos Equis (xx), Sol, Carta Blanca, Victoria, etc
Most Trump supporters drink Budlight and other crappy beers.
@@biblesforbreakfast lol... Bud Light HQ Belgium... Coors & Miller HQ Canada... Barley for Beer & Liquor mostly comes from Canada
Foods are not taxed at grocery stores. Going out to eat is a luxury.
Huh? State and local sales taxes vary on food and other necessities, some tax them, some do not - but that has nothing to do with any national tariff which would most likely be added to the base price before tax. So the local sales tax will be added to the tariff cost in effect it will be tax on a tax!
The potash that goes into making the fertilizer and the energy and commodity…goes into the cost of producing that food.
Now your groceries have just gone up at least 10%. America grows lots of corn, better get used to eating it because the rest of the world won't be buying it anymore.
@@Gryphon-v4nthat corn grows in Canadian potash.
@@anthonyhulse1248 That is true. Corn is a heavy feeder and needs to have the potash.
Trump knows what he’s doing👍
@@janetpetrovsky9349 Just like with his casino.
If you believe that, you need to find someone that finished high school to explain why he doesn't.
Since when? What evidence do you have in your life that this statement is true? Be honest.
fox new glazing tariff and you guy straight hating cant trust no one all compromise
These tarrifs r mainly focused on china via maxico & canada 🎉🎉🎉🎉
LMAO.Youvo to the failed trump university ?
All tariffs are paid by Americans.
THE US PEOPLE ARE GOING TO PAY THEM STUPID
Changing a name doesn't make a body of water any more American than calling a tax "Chinese" when it's still something American consumers are footing the bill on.
If the income from tariffs goes to a reduction in taxes, specially income and capital related taxes, then the inflationary effect will be neutralised.
Lower taxes will massively increase production and investment , specially in energy, which was the main cause of inflation in the past 5 years.
These "experts" assuming that it will be an automatic rise in inflation, have no idea what they are talking about.
You're delusional and don't understand economics.
@@fibonaccitimes does the income from tariffs = the tax being paid in real life? (not in trumps tiny brain).
You know Trump hasn’t thought this through.
You don’t know what you are talking about, decreasing taxes to impose new ones is not a smart idea
@@fibonaccitimes You know inflation has been up since Trump put the tariffs! And the past 7 years, the FED has been fighting inflation!!! You are not paying attention 🧐
@fibonaccitimes for the millionth time you cannot lower the price of fuel AND convince people to "drill baby drill". Show me ONE oil and gas expert that will tell you massive O&G drilling and production increases happen when the price of oil is low and or lowering. IT DOESNT HAPPEN. Suggesting the US can somehow significantly lower the cost of oil is nonsense, there is already more than the world can use. You wanna drill baby drill it has to happen when the price is already high because it inherently lowers the price by doing it! No major increase in demand, no way to increase production without tanking pricing making it unprofitable to do so. Recessions dont make people drill baby drill either so yea there is that...........
In the first term of the Trump administration, the repatriation of manufacturing was an important policy aimed at reviving manufacturing in the United States.
Summary: The following methods were used to promote the repatriation of manufacturing
-Tax reform
In 2017, the corporate tax rate was lowered from 35% to 21%, creating an environment that makes it easier to invest in the United States.
-Tariff policy
By imposing high tariffs on imported goods and reducing dependence on imports, domestic production was promoted.
-Deregulation
By relaxing environmental regulations, it became easier for companies to carry out production activities in the United States.
Reasons for failure
-Structural problems
The United States is already a service-based economy, making it difficult to revive manufacturing.
-Side effects of tariffs
Tariffs caused import prices to rise, forcing manufacturers to bear the costs.
-Labor gap
There was a shortage of human resources to support advanced manufacturing technology, making it difficult to relocate production.
-Lack of global competitiveness
US manufacturing was inferior to Mexico and China in terms of labor costs and competitiveness.
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I don't really blame people who panic. Lack of information can be a big hurdle. I've been making more than $200k passively by just investing through an advisor, and I don't have to do much work. Inflation or no inflation, my finances remain secure. So I really don't blame people who panic.
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Is that a couch-sized dinosaur sculpture in your office?
Ah yes, Terroriff, always works in Humpty Trumpty world of economics😂
Just remember $7,600 in additional annual expenses per U.S. household will have to be bear.
When can we get Brawndo nationwide, President Camacho? It’s got electrolytes!
10% is okay, but 25% is insane.
He said it may increase if he doesn’t feel we are getting good cooperation from these countries 😆
0% is the only ok
The end of the US as a world economic power, coming soon.