Trump’s ”’Big Brain”’ Tariffs is about hit us all

The Trump administration is on the verge of imposing tariffs on several allied countries, and the consequences could be seriously bad. Tariffs are taxes on imported goods, designed to protect domestic industries by making foreign products more expensive. But in reality, they can have far-reaching and devastating effects on consumers, businesses, and the global economy, especially when apply so broadly to all sectors and entire countries.

The upcoming tariffs will likely lead to higher prices for consumers as the cost of imported goods increases. This will hit low-income households the hardest, as they spend a larger portion of their income on basic necessities. The tariffs will also spark retaliation from other countries, escalating trade tensions and potentially triggering a global trade war. This could disrupt global supply chains, leading to job losses in certain sectors and limiting room for future trade agreements.

The Trump administration’s tariffs on Canada, Mexico, and China have already led to counter-tariffs, and the situation is likely to worsen with new tariffs. The unclear objectives of these tariffs, combined with limited negotiation room, have created a perfect storm of uncertainty and risk. A global trade war is a real possibility, and the consequences could be severe.

To be honest, I do understand why people can feel like tariffs will bring back jobs to the US and balance the trade deficit, but these jobs that have been outsourced to other countries, are simply the result of cheaper cost inputs and more efficient transport networks. These jobs are mainly low paying and have long hours, not exactly the kind of work that most Americians will want to do. Plus given the retoric around immigrants right now in the US, the potential labour pool to operate these factories are going to be even lower than before. Which is going to result in more AI and automation using robots which will most likely only create few high paying jobs. And given the counter-tariffs, the poor will have to endure even higher prices on goods for the forseeable future.

Industries like agriculture and manufacturing will be hit hard from rising import cost, reduced competitiveness, and potential job losses. The US economy will also suffer, with higher inflation and reduced economic growth.

So, what can we do to prepare for the potential consequences of these tariffs? Here are just some of my suggestions (plus some from a few different online sources)

• Understand the risks: Be aware of the potential economic consequences of tariffs.
• Support trade agreements that promote open and fair trade.
• Stay informed about ongoing trade disputes and their global impact.
• Support businesses affected by tariffs, especially those in international trade.
• Contact your representatives to express concerns about the consequences of tariffs.
• Diversify your investments to mitigate risk.
• Reduce debt and prepare for potential economic downturn.