Usually I would prefer classical free trade economics without tariffs. Since the USA began outsourcing jobs and the country began trade deficit increases decades ago it was plain that some kind of correction would need to occur at some point. Debt can’t be used to finance a national economy forever. I guess the time has arrived to correct the unbalanced national economic structure. It is tough to regard President Trump as a kind of pragmatic 19th century country doctor amputating a gangrenous policy, yet his economic surgery is a bold move.
I am not sure of what impact the tariffs will have, yet it could be positive in the long run. The minimum wage adjusted for inflation is far less now than it was in 1970. After the Cold War ended global labor competition to American workers increased about 80%. Cheap Chinese labor made American industry invest overseas, in Mexico, India,Vietnam etc- basically anywhere labor was cheap. The theory is that while wages are rising in China and America's working class economy relied on cheap foreign imports for consumer goods and vast federal deficit spending the economy was OK. American wages stagnated except for the rich that saw tremendous income increases because of all the foreign based investments and profit with low taxes in the U.S.A. as well. Low taxes on the rich are supposed to create job growth and it does-overseas.
https://suno.com/song/9e65a66d-a822-43d3-8831-ebcd0235924a?sh=LVeInrKa1hVauYW7
Tariffs may reverse the investment flow a little. With public debt at 33 trillion something had to be done. The planetary tariffs are a bold move and I am surprised that Pres Trump actually had the will to try it. Public debt and federal deficit spending couldn't just be allowed to keep increasing by a trillion or two every year until it hit 50 or 100 trillion while American wages were poor and imports became more costly because Chinese wages are increasing and the rich can hide their foreign profits in bitcoin and other crypto-currencies. Foreign economies grow stronger and America's comparatively weaker. The tariffs are a real attempt to change things positively. I hope that it works.
Those Ford Galaxy 500s were pretty decent cars. T.V. seemed fine. The moon landings were clear enough, and Superbowls. Chryslers had some manufacturing issues. Detroit partly closed down. The Arab Oil Embargo of 1973 gave small foreign cars a huge boost in American sales because people wanted fuel efficient foreign cars. It was amazing to see the year by year increase of small Japanese cars like the miniature Honda civic in size- and of course today the Toyota trucks are almost as large as 60s American trucks.Detroit tried retooling while iron production declined in the Midwest- lots of political issues. Environmental issues loomed large. The national highway sped limit was 55 m.p.h. for conservation. It was a time of change. Establishments drag their feet on change sometimes. The effort to produce synthetic fuel from coal at Parachute Colorado to replace embargo'd fuel reminds one how tough the lack of fuel was- long lines on even and odd days to buy gas.
The N.Y.S.E isn't a list of American businesses located in America. Tariffs into America and exports-even Boeing parts for China and vice versa, are going to slump sales and increase costs for a lot of people. A time for adjusting to a new balance might take a while.. The N.Y.S.E. has 530 corporations from 48 countries. Even small changes in costs require price adjustments, much less large tariffs. Even resetting pricing will take time. Some multi-national corporations will get around tariffs, yet other could pay tariffs in two-way trade (i.e. 35% plus 35% equals 70%).
