I'm seeing a lot of posts that are like, "This is a generational opportunity", and "YOLO - Infinity Calls To the Moon!".
This event is not like other events. This is a worldwide tax on *everything* you will by. I can't stress this enough. IT IS WORLDWIDE - which means the economic reach is larger than anything we've ever seen before.
I don't usually post because I don't really care that much about this stuff, but if I can save some people from buying this supposed, "dip" (it's not) then I'll do what I can.
Here's why this is extremely bad for the US economy:
* *Every* company in the US will be hit financially - at minimum 10%, max around 65% based on tariffs
* Their costs will be passed onto you, the consumer.
* Estimates have yearly costs increasing between $5000-$6000 per year per capita, which is enough to put some people out of their homes.
* This will create a few knock-on effects
* Inflation will increase - because inflation is tied to CPI (consumer price index) which can only go up if goods and services go up, because corporations are charging more for their products.
* Reciprocal tariffs
* If you think other countries are just going to roll over because of this, open your eyes. Every country, again, *in the fucking world*, is going to slap the US with comparable tariffs. Which will increase CPI, *again*
* Most tech, clothing, furniture, and car manufacturers source their materials from other countries.
* The actual amount varies, but 1 example is apple - sourcing 90% of their materials from China.
* This will take an enormous toll on their bottom line, and will likely reduce sales due to cheaper competition and higher up-front costs.
* There were only 2 other times sweeping tariffs happened in US history.
* around 1930 1928, both of which resulted in horrible depressions for the US
* The tariffs don't even make sense
* For example, in his press conference, he said that the US pays 200-250% for dairy imports from Canada.
* In actuality, the US pays $0 for ALL dairy imports because of how the dairy tariffs are structured. There is an import threshold that has to be met for those tariffs to activate and the import amount has never made it to that threshold. Therefore, he's a lying sack of shit.
Trump just dropped the equivalent of an economic terrorist nuke on the economy. He's waaaay to dumb to understand what he just did, and I'm sure in his quest to be supreme leader of the US, he doesn't care.
So here's what I suggest.
**Wait** \- or go short.
If you're not comfortable going short, or don't know how - wait.
There is no equivalent in modern history for what just happened, and the economic fallout will be immense.
Good luck, I hope everyone makes some money.