Tariffs in the second Trump Administration [SPLIT]

[rareboy]

And this is how TRumpCo. delivered family farms to corporations in his first term.

USDA cuts hit small farms as Trump showers billions on big farms

Anna Pesek saw a federal program supporting local food purchases as much more than a boost to her Iowa pork and poultry farm. The U.S. Department of Agriculture grant program that allowed schools and food banks to buy fresh products from small farms helped her forge new business relationships...

www.yahoo.com

 

[KaraBulut]

^Not accurate, btw.

A tariff is assessed on the wholesale value of the product, not the retail value. The consumer price might be $1,600 but the wholesale price is likely around $800. The tariff would be assessed on the $800.

Sales tax is itemized on sales receipts (which the purchaser pays). It's unfortunate that retail never shows the mark-up due to tariffs levied.

 

[Norri]

I think the term you're looking for is "low-cost leader." They survive on small margins through economies of scale, with a fierce attention to cost control and operational efficiency. Walmart is a low-cost leader with a relatively low profit margin. It is also the largest retailer in the world.

Yes low cost leader would describe that strategy perfectly but that strategy came about because of a change in the law which created an opportunity which men like Sam Walton exploited. Wage and price controls were in effect during WW2 and the price controls continued into the 1950s in the form of minimum pricing laws which meant you couldn’t compete on price so you had to compete on service (think shoe salesmen putting the shoe on your foot for you) but once those laws were repealed by the early 60s low cost retailers entered the market.

It was the only opportunity available to them which isn’t to say that’s what they would have chosen if other opportunities were available. RBs post suggests that in a world where the wealthy are running things they would choose the low cost model but I don’t believe they would because you can make more money with higher prices and better margins and I think we can all agree all they care about is money.

 

[KaraBulut]

...because you can make more money with higher prices and better margins...

Or in cornering the market and buying up the competition.

 

[rareboy]

This seems about right...but I don't know for a fact it is true.

 

[rareboy]

Once again...either woefully stupid or willfully lying.

Tariffs don't 'flow' into the US.

They are paid by the importers and then charged to the consumer as either a hidden tax or as a federal excise tax.

My money is on TrumpCo. knowing that they are lying...and knowing they can get away with it.

 

[rareboy]

 

[cityboy-stl]

Today is going to be a bloodbath.

 

[rareboy]

Orange Monday: The global stock market is collapsing.

Hong Kong -13.6%
Taiwan -9.6%
Japan -9.5%
Italy -8.4%
Singapore -8%
Sweden -7%
China -7%
Switzerland -7%
Germany -6.8%
Spain -6.4%
Netherlands -6.2%
Australia -6.2%
France -6.1%
UK -5.2%

 

[rareboy]

AEI believes TrumpCo's math is just wrong.

 

[Norri]

Orange Monday: The global stock market is collapsing.

Hong Kong -13.6%
Taiwan -9.6%
Japan -9.5%
Italy -8.4%
Singapore -8%
Sweden -7%
China -7%
Switzerland -7%
Germany -6.8%
Spain -6.4%
Netherlands -6.2%
Australia -6.2%
France -6.1%
UK -5.2%

Assuming that eventually we get past this (and that’s a maybe) the above will not be forgiven or forgotten.

A good rule of thumb is don’t fuck with other people’s money.

 

[johaninsc]

 

[KaraBulut]

Scott Bessent's assessment of the market since Trump's little tariffamegaddon? "The market is working! People can sell and buy stocks. People don't watch their 401Ks."

 

[rareboy]

Obviously the whining from Wall Street is loud enough that they are beginning to get the message. And so the American consumer, already paying a new federal sales tax on everything can stand by and watch all the big companies reap the rewards by paying even less tax.

It will be giveaways to TrumpCo. friends and donors.

 

[rareboy]

And it is clear that the US doesn't want a deal on tariffs. They want the tax revenue

 

[rareboy]

Another good example of how reckless and unserious the Trump regime is.

104% tariffs on goods from China. Absurdist nonsense.

Do they really still think that China is only a paper tiger?

Do they not see how this will seize up their own economy in no time?

Navarro and Lutnick and Bessant are as nuts as Trump.

Trump tariffs on China set to rise to 104% Wednesday, White House says: Live updates

China has remained defiant in the escalating trade war. Trump advisers say other countries are lining up to negotiate deals.

www.usatoday.com

 

[KaraBulut]

His "trade advisor" is a guy that Jared found on the internet. Peter Navarro was hired as an advisor to Trump, even after Navarro went to Federal prison for refusing to testify to Congress and even after it was discovered that Navarro made up a character named "Ron Vara" who, for 20 years, he cited as being a Harvard educated investor and expert who Navarro multiple books. He created a fake alias for himself to support his fringe-y economic theories because he couldn't find any reputable economist or investor who agreed with him. Instead, he found Trump.

Who Is Ron Vara? The Truth Behind Peter Navarro's Fake Expert

How Trump's Trade Advisor Created and Quoted a Fictional Source to Bolster His Economic and China Policy Claims

brendonbeebe.substack.com

The market was up this morning (apparently based upon false social media posts that Trump was going to delay the tariffs). It's back down because the tariffs go into effect at midnight:

https://www.cnbc.com/2025/04/08/trump-tariffs-live-updates-stock-market-china.html

Trump trade fight: Customs starts collecting tariffs on imports from 86 countries at midnight

Tomorrow is not going to be a good day.

 

[rareboy]

 

[KaraBulut]

 

[fallsguy]

God I hope they blow him up.