Well?
If he didn’t before today?
He’s got one dropped on us now with Tariff Wars beginning…
If this tariff war last’s?
EVERYBODY HERE and ABROAD, ARE in DEEP Shit because a ole’ crazy assed America Presidentt, is reverse wired living in a Alternate Universe….
Where he HAS company…
The key thing to remember is that North America has been, in effect, a free trade zone for decades. Goods move back and forth across the borders so frequently that the number of crossings is almost incalculable.
Consider an example highlighted by the Wall Street Journal recently. It pointed out that a piston – a component of a car component, might cross the border, back and forth between Canada and the US and Mexico, six times before it actually reaches a customer.
Right now, it doesn’t incur any fees on each of those crossings; tariffs change that picture – and completely change the economics of making stuff.
Now, there are some deeper long-term discussions that could be had about the merits of making a car in one place versus another, but in the short run, the implication of these tariffs will be inflation. That’s almost inescapable.
If it suddenly costs 25% more to bring a piston across from Canada into the US then imagine extrapolating that into every single component making that journey each day: it means the price of many goods goes up.
How many? That’s hard to say, but consider that between them, Canada, Mexico and China account for around 40% of all US imports.
They account for almost 60% of energy imports. So while the objective of these tariffs might be (we still don’t really have a clear picture since various different administration figures give various different explanations) to rebuild American manufacturing, it takes years to get factories built. In the intervening period, tariffs spell higher costs for American consumers.
Not long ago, most of the high-frequency economic measures were suggesting the US economy remained robust.
But in recent weeks, high-frequency measures of activity have suggested the US economy is facing a very sharp slowdown. Indeed, the “GDPNow” Nowcast measure from the Atlanta Fed recently pointed to the US economy contracting at an annualised rate of 2.8% in the first quarter of the year.
In other words, America may now be in recession….
…
Trump response to Dropping GDP ?
Change the way it’s calculated?
And it probably won’t change the fact that things are getting worst in the US Economy with Donbald Trump as President, NOT Joe Biden…
The Trump administration is suggesting a change in the way economic growth is measured, just as the economy appears poised to notch its worst performance since the pandemic-era shutdowns.
On Monday, an economic growth model from the Federal Reserve Bank of Atlanta forecast a steep decline for the first three months of this year — a 2.8 percent contraction in economic growth, after nearly three years of solid growth.
That same Fed model began flashing negative forecasts on Friday for first-quarter gross domestic product, which sums up goods and services produced in the United States.
That prompted Trump adviser Elon Musk to muse on Friday that a “more accurate measure of GDP would exclude government spending,” on X, the platform he owns.
…
“Real GDP and private GDP tell almost exactly the same story,” said Jason Furman, an economics professor at Harvard University and former adviser to the Obama White House. “Even in the world of DOGE, government spending is very volatile quarter to quarter. I think they are making the mistake of thinking private GDP will look better than overall GDP, but if you look at GDP in the last couple of years, it looks almost exactly the same with government spending or without it.”…
Note….
At what point does Someone or SOMETHING put the brakes on this?
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