With Trump’s tariffs, it’s my understand these won’t just hurt the US economy but also the broader world economy.
Due to this and other Trump policies that have alienated many of our allies, I’ve been concerned the US economy, and even the World economy, might go into a recession. Even if there is a recovery, perhaps the world won’t welcome us back with open arms after the way the Trump administration has talked to and about our European allies, as well as the tariffs, leaving the US economy weaker, isolated, and more vulnerable.
Many of our “exports” are services which is precisely why American companies like Apple and Microsoft have done so well. Manufacturing, even if brought back, might not benefit the US economy the way it did the in the past. You can’t roll the clock back. The logistics alone of actually building new manufacturing facilities in the US, training and hiring workers, this all takes YEARS, even decades.
To prepare, I’ve wondered if I should either stop contributions to my IRA, or contribute to international index funds like EFAX (only developed economies) or even XLP since consumer staples tend to do better during recessions?