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Tariff panic is the default media mode. Even if it involves ignoring certain inconvenient facts.
Nike Stocks Plunge After Donald Trump Announces New Import Tariffs – Complex
Nike Stock Drop Erases $12 Billion in Market Value – WSJ
Nike Stock Tumbles as US Tariffs Hit Asian Suppliers -Investopedia
Nike, Lululemon and Other Consumer Stocks Hit Hard by Trump’s Tariffs – The New York Times
While tariffs no doubt accounted for Nike’s most immediate fall, the company and its stock have been declining for a while now.
Most of this is due to Nike’s business model of direct sales and the trends shifting away from it. I still see people wearing Nikes, but not as many as I used to. In this economy, Nikes are expensive and the company’s monopoly on the sporting goods market is very much a thing of the past.
Let’s look at Nike’s financials from a few weeks ago.
In North America, Nike’s Q3 revenue declined 4% to $4.86 billion. Nike Direct sales fell 10% as Nike Digital dropped 12% and physical stores 6%. Wholesale revenue increased 3%, driven by favorable shipment timing and stronger sales to value-focused retailers, Friend said.
In Europe, the Middle East, and Africa (EMEA), Q3 revenue fell 10% to $2.81 billion. Nike Direct declined 12%, with Nike Digital down 25% and store sales up 9%. Wholesale revenue decreased 3%, Friend said.
In Greater China, Q3 revenue declined 17% to $1.73 billion. Nike Direct fell 11%, with Nike Digital down 20% and store sales down 6%. Wholesale revenue fell 18%. In Q3, Friend said, traffic in the region dropped by double digits and retail sales underperformed expectations.
Meanwhile, in Asia-Pacific and Latin America (APLA), Q3 revenue declined 11% to $1.47 billion. Nike Direct fell 4% as Nike Digital dropped 8% and store sales rose 1%. Wholesale revenue was down 4%
Nike isn’t this great company that’s suddenly taking a massive beating because of tariffs. It’s a troubled company and a debatable value proposition that was already trending downward.
That more complex reality is being concealed in favor of tariff doomer hype which says everything about the media outlets and ‘experts’ doing it.
They’re not being honest because their entire line of argument is not honest. When the truth is on your side, you don’t need to lie.
That’s interesting. What struck me while reading the article is that they bet everything on overseas production, thinking the gravy train would last forever. Perhaps it would have been wiser to diversify the risk by keeping some production at home and not overcommitting their resources to overseas, which was obviously unsustainable over the long run.
President Trump is playing with fire, a tariff war can escalate and go on indefinitely. Israel under the leadership of Netanyahu is dropping its tariffs on American goods to zero and that is what President Trump is seeking but a tariff war doesn’t always end so ideally. Considering how much the European Establishment hates President Trump why wouldn’t they escalate the tariff war and keep it going until Trump’s presidency is irredeemably damaged.
The EU has had not on it’s CAKE and has EATEN it TOO, WE have been PAYING them to EAT the CAKE! When you consider what we get from the EU and what we send AND SPEND for their protection, how much of a loss would it really make if they decided to just hold their breath and not trade with the US?
In that case we’d probably shift most of our Military Bases to Nations not INSANE! Many EU Nations strongly benefit from Our Bases and for sure their Economies benefit from US Protection that THEY don’t pay for adequately! Maybe these tariffs will wake up those idiots to the reality of their suicidal politics! If not, we’ve got a large ocean between us and Europe and if worse comes to worst we’ll have to send the Alabama National Guard to conquer the EU!
How many Americans understand a current account deficit means a capital account surplus? How many Americans can articulate the benefits of a capital account surplus?
I encourage those interested in the topic of tariffs to read the four chapters in Hazlitt’s book Economics in One Lesson that relate to it. Those chapters are Who’s “Protected” by Tariffs, The Drive for Exports, “Parity” Prices, and Saving the X Industry.
Not many Americans understand it. Most people think we actually lose money with trade deficits! I hope many people read the material you mentioned and maybe they’ll understand how foolish tariffs actually are.
We’re not ‘gaining anything’ from having China seize control of our economy. Our companies don’t actually gain any footholds in China. Neither does it benefit our economy.
These models might have some application in traditional trading models, not in economic state-based warfare.
People betting with their own money are giving Trump’s tariffs a thumbs down. Maybe the negative wealth effect is also just theoretical. We’re about to find out. Trump promised to bring prices down. So far he’s been very successful when it comes to stock prices.
China has not “seized control” of our economy. I and everyone else who buys stuff from China chooses to do so because we think we’ll be better off. (With the money I save, I can subscribe to FPM+ )
A trade deficit means a capital account surplus. (Readers eyes glaze over.) The Chinese can only do one of two things with the dollars they get, buy U.S. goods and services or invest in the U.S. That investment in the U.S. increases productivity and if used to buy bonds, keeps interest rates lower.
It is a sad commentary on our education system that so many people do not understand “the benefit of exporting is you get to imports.” Failed mercantilism was based on the idea “exports good, imports bad.” I have a trade deficit with every business I patronize.
What was one way President Trump attempted to bring egg prices down? …Imports!
For the sake of the U.S., I hope to turn out to be 100% wrong about the tariffs. If I am I will be adult enough to admit it.. Although the Smoot-Hawley Tariff Act did not cause the Great Depression, it made it worse and prolonged it. We’re about to find out if Santayana’s warning about those who ignore history is accurate in the case of tariffs.
Yes, Richard-with the trade surplus money China “invests” in the U.S. buying up American assets, companies, farmland and even control much of the marijuana trade in some parts of the country. In other words “seizing control” of our economy.
First of all , China has not gotten control of our economy. No more than the Brits do and they have large amounts of investments in the US. Just a bunch of protectionist paranoia conspiracy theories.
If China is a geo political threat, which I believe they are, we might consider full sanctions and end all trade with them.
When citizens of two countries trade with each other, they both benefit, regardless of which country runs a trade surplus and which runs a trade deficit. The only way to hurt them is to end trade altogether.
But just tip toeing around that and adding tariffs that will be paid for by Americans like Trump is doing, is simply foolish.
Trade deficits are bad.
The idea that “we” don’t lose money with trade deficits …
Is a bubble of another level.
Trade deficits represent dollar for dollar loses to the local economy.
When those losses are due to a temporary imbalance due to a fluctuation in a market cycle, it may be excused as a shift from one means of production to another or from an older solution to a new solution. That is, it could be ‘creative destruction’ according to the globalists.
When those losses are due to punishing regulations, taxes, and legal obstacles created by politicians in exchange for bribes and kick-backs – and ‘balanced’ by protection for the foreign supplier, those trade deficits represent a direct and immediate threat to the local economy.
American trade deficits – are the latter.
We know because we’re the ones being replaced.
You should know because monumental trade deficits cannot possibly be good – when those deficits run non-stop for decades.
And. somebodies are losing their kickbacks waa waa waa hence the media blitz against tariffs.
I have a trade deficit with every business I patronize. Those businesses buy nothing from me. I’m not worse off as a result but better off.
“…punishing regulations, taxes, and legal obstacles” do make consumers worse off. So do tariffs.
The money that we supposedly lose in trade deficits, comes back in investments into our country. That is according to the BEA(Bureau of Economic Analysis) which calculates our trade deficits. It also calculates our capital account surpluss and it is a virtual wash.
Even if the money never came back we’d be ahead as they’d get worthless paper and our citizens would get real tangible goods.
So yea. We have been running massive trade deficits for many decades now. And we can continue till the end of time and it wouldn’t matter one bit.
Trade deficits are not meaningless. They are beyond meaningless. It’s a surprise that the BEA even keeps track of them.
Protectionist tariffs can be very damaging even if there is no trade war. Even if no countries respond with additional tariffs, they are damaging to our economy all on their own.
Protectionist?
American trade deficits represent protectionism alright
Protecting foreign government slave plantations you mean.
Yea I’m sure. Europe, Brazil , Mexico, Australia. They all have modern day slavery,. They even have special ports for slave ships to dock at!
Well I’m sure you mean China. Well lets place sanctions on China, have the rest of the world join us, and then maybe we can destroy the CCP like we did the old soviet union.
But Trump isn’t concerned about slavery I suspect. He is more concerned about trade deficits that are actually completely meaningless.
ye are a bitter and confused automaton
Here is a bit of Haiku for you
Knock Knock
Who’s There
Hike
Hike who
President Trump is putting out fires burning down our nation and the world!
There is so much wrong that it’s going to take every minute of the 4 years President Trump 47 has –
Prayerfully VP Vance will carry on 4 two terms as POTUS the MAGA tradition as he is learning and being mentored
He did say he’d bring prices down. Given what has happened since the tariffs were announced, he’s certainly brought stock prices down.
His plan to bring egg prices down was …import more eggs.
Until such time as destroyed flocks of chickens can be replaced, egg importation was a temporary stopgap. WHO DO YOU THINK YOU’RE KIDDING?
In my state gas is down about 50 cents a gallon from a year ago because Trump has said he is going to ramp up drilling.
Egg prices are down almost 50% from just six months ago.
Let’s face it, you are a dyed in the wool Democrat who just can’t get out of his Trump hating tariff rut, who teaches at a run of the mill small time college in an uber liberal state. So you just go on hating Trump as the world passes you by.
I guess you never heard of market fluctuation and liberal market scare tactics. Obviously the market will rebound, probably next week or the following when investors see it’s not the end of the word. Don’t forget to buy on the dip….after the predictable dead cat bounce Mr. I Teach Investments.
I am in one investment, an ETF called FENY. I bought it originally about $7 and I would sell every time it went up a dollar. It just peaked at 25 and change and it’s back down to 21.57. Since I only buy in 100 share blocks I’m about $200 in the red. But I didn’t panic and didn’t sell. My main investment is gold and silver. I’ve been buying that stuff for about 35 years. That’s why I don’t have to go to an office.
Since you have asked several times what my accomplishment is, I have been retired since that crooked Communist Obama was elected.
That’s why you have to keep teaching at a dink college. And don’t give me that garbage about how you just love being there.
Hopefully Vance won’t implement tariffs and other idiotic protectionist policies.
Sure he says he supports Trumps tariffs now. But you can’t read much into that. The VP rarely if ever, undermines the presidents policies by publicly admitting he is against them.
But it be best if maybe Ted Cruz is prez in 2028. He has basically implied he is against Trumps tariffs.
Because NO ONE needs what the EU is selling.
Then why do they choose to buy it?
The company that decided the U.S. needed to have its own domestic harmonica producer did produce them. They ended costing far more than German, Japanese, and Chinese imports although they were demonstrably not of higher quality. The company didn’t last long because….wait for it…consumers want low prices.
My guitar was made in Canada. Yes, I could have bought a U.S-made Martin guitar at a much higher price. All those businesses that benefitted from the money I saved would not have gotten my consumer dollars.
You should have bought an American guitar. Only a cheap dumb-a$$ would buy a Canadian anything. You get what you pay for.
In 1969 I bought a Fender Precision bass, pre CBS. I paid about $175 bucks. Four years ago the bass needed re-wiring. The guy who worked on it showed me the pickups. They were originals and had been manufactured in 1964. Instantly the bass’ value skyrocketed to about $6000.
So who’s going to buy that cheap piece of Canadian junk when you finally realize that folk music died in 1964. Maybe you can gift it to Monmouth Sanitarium.
🎶🎶How many roads must a man walk down🎶🎶…….ahh, who gives a crap……………Yeah man, Pete Seeger and protest songs, the next big thing.
The foreign produced appliances cost more than domestic and have poor repair and guarantee support.
Then don’t buy them, problem solved.
But you shouldn’t be able to coerce other Americans to not buy imported appliances if that is what your’e suggesting.
Are you suggest that their tariffs are somehow fair and us not liking it and doing something about it is wrong, i.e., not fair to them? What are you, some pusillanimous EU fart smeller? If you like getting schlonged by other countries, that’s your business. It doesn’t mean the rest of us like it and will put up with it..
Trump is doing what for decades, no other American president or politician had the balls to do and that includes Ronald Reagan.
Why oh why must America take sh*t from other countries and not do or say anything about it? It’s high time America snatch the teats out of those ungrateful bastards mouths and slap some sense into them and set things right & fair.
If you want to act like a gutless, spineless worn, go right ahead. Myself and many other Americans are tired of other countries screwing us over and want something done about it not tomorrow, not next week or next month, NOW!!
Tariff doomers are doing the same for Stellanis. The company has been failing for awhile now, they had to fire their North American team last year because of falling US sales. Now some in the press and financial groups are blaming tariffs.
The recent and continuing declines in the stock market are most definitely caused by tariffs and the uncertainty surrounding them. Weak companies with large foreign manufacturing bases are getting hardest hit, but everything except utilities and maybe some healthcare is getting demolished. Unfortunately, driving investors out of equities and into treasuries, in order to bring down yields, is part of the plan. The ten-year just went under 4%. Once they refinance debt at a lower rate it will be time to pump equities again. I didn’t think Trump would be willing to drive the economy into recession but it’s possible. It would certainly mean losing the House in the midterms so it’s very risky, Time will tell if it pays off.
It will be hard to “pump up equities” if companies are earning less profits because they cut back on investing due to uncertainty. This is not hypothetical. Although President Trump wants the U.S. to “drill, baby, drill,” that drilling is less likely to take place because of the uncertainty caused by the tariffs.
I hope for our country’s sake that I turn out to be 100% wrong about the tariffs.
Trump lost a GOP House and Senate in his first term, giving President Biden a Dem-controlled Congress to work with. That didn’t work out so well for the U.S. unless you think high inflation and higher deficits are good for the country.
“I hope for our country’s sake that I turn out to be 100% wrong about the tariffs.”
I think that is kind a non sequitur. It’s kind of like saying: “I hope I’m wrong that massive tax increases will be bad for our economy”. Of course you won’t be wrong!
The uncertainty of tariffs is certainly a big factor in the decline of the stock market. That’ll stabilize to some extent. But these tariffs and all protectionist measures will cause all sorts of economic hardship above and beyond just the uncertainty caused in the short term.
It’s not a non sequitur but instead a recognition I could be wrong. For our country’s sake, I hope that turns out to be the case.
If stock prices “stabilize” at a lower level, we who own stocks will be poorer. Common investment advice is for retirees to withdraw 4% every year, adjusted for inflation. When the market value of your stocks is down, retirees get 4% of a smaller amount. Those stock prices are a statement about how investors view future economic prosperity. Maybe Trump will turn out to be correct and stock prices will stabilize at higher levels. We’re going to find out.
I don’t get all the worry about the stock market. Why? In 2000 and 2001, after the dot.com bubble burst, I made a killing in the stock market buying under valued stocks and did it again in 2009 and 2010 after the 2008 market melt down.
The market being down now is a buying opportunity for those with the money and know how to invest wisely. Since 2008, my motto has been: I don’t work for money, money works for me.
Markets go up & down and vultures like me are circling and biding our time for the right moment after the suckers clear out……
That’s what I meant. Stock should stabilize at a lower level if the tariffs stay in place.
If they go up above and beyond what they are now at some point, it clearly would be a case that they didn’t go up as much as they would if we hadn’t imposed these tariffs to begin with.
Though tariff supporters will just say, “See, you were wrong all along, stock market went up, so it really was only short term pain”.
But Trust me. Trump is not right. If stock prices do eventually stabilize at higher levels, it would be because of coming tax cuts, spending cuts, and regulation cuts.
I guarantee you they won’t eventually be worth more because of the tariffs.
It is a hardship to be dependent on other nations for everything, especially clearly enemy nations. Pharmaceuticals is just one example which was made clear in recent years. That includes the problem of insufficient supply and dangerous quality.
In many ways you are like the America hating objectivist on these pages who hates Christians and Jews and Trump. You hate the Trump tariffs and eggs. Did you vote for Kammy?
Little by little your snobbishness and know it all personality seeps through because 1) you sell yourself as a professor and 2) you are a typical wannabe elite liberal desperate for attention.
Drilling and fracking turned the failed Obama economy around during Trump’s first term. So did the tax cut.
The Dems tried the Russia hoax and 2 impeachments. That failed and all they had left was Covid. They had to cheat to “win”. Then they tried to jail him through lawfare, get him kicked off ballots, E Jean Carroll, Stormy Daniels. Finally they tried 2 assassinations and lawfare Pt.2 with some of the small time district judges appointed by the corrupt triumvirate of Obama/Clinton/Biden. What a slew of amateurs.
Bottom line, Trump won the election handily. You will never be anything but a small time associate professor at a dink college. Do yourself a favor. Stay in your lane. Remember your lowly station in life.
Well he’s certainly willing to drive the country into war. At least until the first carrier is at the bottom of the Red Sea, that is. Why the surprise?
Trump isn’t driving the country into war. He’s dealing with an Iranian war that began under Biden.
This is what I mean about dishonesty.
Who knew this column would bring out so many cowards?
We have lived under constant war and endless anti-American economic policies for so long
they have no idea what the world would look like if the government wasn’t stomping our faces.
I notice “uncertainty” keeps coming us as an excuse for cowardice.
good point!
my comment is too short
Anti American economic policies you say?
You do realize that over the last 100 plus years we have had the most dominant and prosperous economy on the planet don’t you?
You have not been keeping score. You have also reversed cause and effect.
I and all my conservative friends stopped purchasing Nike after their blatant support for all things liberal. Plus their ego as a top dog was showcased when they completely screwed up Steph Curry’s signing and handed it to Under Armor. They have been making their bed for 2 decades.
I understand why many conservatives, including myself, would avoid purchasing NIKE products. The problem is that these tariffs will hurt all companies and our economy.
Accepting the trade policies that brought the economy to this point would be like a compulsive gambler continuing to play in a rigged casino to recover losses and being shocked at losing as Captain Renault was shocked at winning. There would be no surprise. Renault and Rick left the country because much more was rigged.
I only buy New Balance
I hate to tell ya, but that’s also owned by Nike.
They have widths available.
I haven’t bought Nike in a while. It turned into overpriced junk which goes along with wokeness..
I try to buy Made in America shoes.
Given all the phonies in the system, it’s probably vain to hope they’re really made here,
but it’s my conservative version of the Lefties’ feel-good virtue signaling.
I’m not some savvy expert shopper by any means, but far as I can tell, American made shoes cost twice as much if I’m not mistaken.
Why would you want to spend twice as much unless you have money to burn? But your choice. I personally would never pay twice as much for something just because it’s American made.
Most Americans wouldn’t pay more for American made clothing which would explain why there aren’t nearly as many American clothing manufacturers as there used to be.
So what is your point Mr Greenfield? Nike was already in decline according to you , so what? Other innocent companies as well will be hurt by these tariffs.
Again , your point? Are you ok with this massive tax increase on Americans that these tariffs are? Do you not understand how foolish protectionist policies are?
I’m not sure companies that outsource everything except the marketing are really ‘innocent’.
With the exception of the blueberries, tomatoes, and basil I grow, I outsource almost everything. There was a time when more than half the U.S. population worked on farms. They outsourced much less. Economies of scale did lead to far fewer farmers producing much more using combines, No doubt that was traumatic for farmers who couldn’t justify putting out hundreds of thousands of dollars to buy a combine. They sold the family farms. Should we have outlawed combines to prevent this destruction of the family farm?
Adam Smith pointed out in 1776 that specialization explains why some countries are wealthier and others poorer.
Blueberries, tomatoes, and basil? Really?
Well Ritchie. That explains a lot.
It’s their company, their choice. So now you want the government to decide how much can be outsourced and how much cannot? Are you really supporting big government central planning?
And let’s say that too much outsourcing is bad for us, which I’m certain it’s not, but for arguments sake. Do you really trust the government to manage and control our economic decisions and plan for our economic future? Especially with the world largest and most prosperous economy?
Because in the end, tariffs and all forms of protectionism are nothing but economic central planning.
Outsourcing is a legitimate practice that helps companies lower production costs. Sounds like a fiduciary responsibility to their stock holders.
The industries that won World War II are gone because they were not protected. The jobless were not protected. The work force to non worker ration indicates failure.
So what? We still have the strongest military on the planet and no one dare attack or certainly invade us.
The way to enhance our national security is to have the best and strongest military. Have strong oil and steel reserves. And stay wealthy and prosperous.
Becoming poorer with tariffs and import quotas will never be good for national security.
Hoping Nike loses more consumers and the same for Dicks Sporting Goods Hit them where it hurts the most
We have a horrendous trade deficit as of 2025 as shown in Forbes:
“The U.S. trade deficit now routinely tops $1 trillion, principally because of four particularly large U.S. trade deficits – with China, Mexico, Vietnam and Ireland.”
I see, it’s OK for US companies to send their manufacturing out of the country, lowering production costs, maximizing profits and “giving the customer a break”?
Many pay the workers in these countries slave wages so that product costs are less to the consumer and profits for the stock on Wall Street increase.
Like the endless short sightedness here in the US, nobody looks at the well-paying, blue collar manufacturing jobs that were destroyed by us off shoring our manufacturing elsewhere. Sure profits went up, stocks went up and middle America was ambushed from behind. Yes, slightly cheaper goods. And those now unemployed Americans?
Like learning to live on a budget, greedy corporations here don’t care about Americans. With tariffs, their incoming goods cost more, likely altering purchases and profits, or they can do reinvest in manufacturing back here at home and hire American workers, not illegals.
IMO it is reigning national stupidity for essential goods and services necessary for our economic health and national security to be in the hands of those countries fortifying their economies and military off this deficit; the chief benefactor China.
We have skilled American workers in both blue collar and white collar areas.
The corporate greed that has maximized its profits using either off shored employees or bringing them here while Americans are unemployed; total BS!
Trump needs to explain this in regular language and Americans will understand short term discomfort for longterm benefits in well-paying job creation and the much needed return of manufacturing to our country,
I still remember I had a neighbor who was a big H. Ross Perot fan. I didn’t know anything about Perot at the time. Perot warned us not to ship our manufacturing plants overseas. Since then we have lost about 60,000 manufacturing plants.
Perot was a shameless protectionist idiot.
We lost 60000 manufacturing jobs you say? By nearly all estimates and studies most of those jobs were lost to automation which increases production. But saying we lost 60K jobs is just cherry picking and irrelevant. It’s like going to the casino and winning. But you only count the hands you lost and ignoring or not being aware of the hands you won!
Many more jobs were created elsewhere and our standard of living has gone up since the 1990’s. The US unemployment rate has been virtually the lowest in the world since Perot ran in 1992 and even many decades before that. Our standard of living has also been the highest on the planet for the working class over that time period.
Like none of that is true, Mike.
Where do you get that crap? CNN? The Feds?
AA wrote ‘plants’ – it’s a gross UNDER-ESTIMATE of the number of manufacturing facilities deported by the anti-American economic policies of both the Left and fake-Right.
Perot was referring to retaining critical “infrastructure” for maintaining our national security. But it also applies to maintaining the infrastructure on which you are dependent.
Perot was right. Today more than 30% of mission critical components necessary for our war machine depend on foreign suppliers. China dominates that sector. To be fair, much of it can be switched quickly if the need arises, but not all of it.
Perot was also correct in the breach. Without national security and government defense contracts, our technical base – from factory floor technicians to our knowledge base professional class – would be working at Walmart.
And Space X would have no one to hire.
As for automation substituting for labor: This excuse was never true. Automation has strict limits on what can be done, and it replaces extremely low-wage or entry-level or low-capacity workers.
So you’re buying an expensive “robot” to replace a Democrat voter. Yeah, it’s great in special cases, but it’s not as widespread as believed and it’s not scalable.
Unemployment rates are meaningless. As are ‘standard of living’ arguments.
Unemployment is a magical number altered at will by the government – and “both” sides cheat.
The ‘standard of living’ in the USA has been the highest on the planet since for all Americans since 1776.
The question here is whether Americans will continue to enjoy that privilege or not.
If the Demokkkrats have their way, the American Dream will end, and all of our wealth will be transferred to a tiny elite – as it was every in the past and is now in almost everywhere outside the Euro-anglo-sphere.
G-d love ya’
As of now, the US has the highest standard of living on the planet. We have the highest buying power for our workers. No place on earth is easier than the US to start a business and become wealthy. No place on earth is better or easier to get a good job and build a stable financial safety net for you or your family.
After 50 plus years of supposedly “getting all our wealth and jobs ripped off”, we are somehow the wealthiest nation on earth. I can just the egg on Perot’s face now if he could be here!
Go live in nation like Germany or South Korea that protects it’s industry and actually runs trade surpluses. You’d see how much better it is here for workers. You’d be back here faster than you can say ‘free trade’!
Tariffs will result in short term pain,…and long term pain!
You don’t know that.
Oh I know that!
If Crazy Bernie were president (and we were closer to that reality than you can imagine), and he gave us massive tax increases to implement his socialist vision, would you say: “We don’t know if Bernie’s plan will cause long term distress, lets give him a chance”?!
Of course you wouldn’t say ‘we don’t know that’. These tariffs are nothing more than a massive tax increase on Americans. Nothing good can come from them.
It’s not like this massive tax increase in the form of tariffs has some ‘magical’ powers to defy human nature and the laws of economics!
Companies hollowed out the economy by selling our manufacturing wholesale to China.
Then China just copied their products and dumped them here, putting them out of business.
Now China is seizing control of retail channels and proving they can out-Amazon ‘Amazon’ which destroyed domestic retail and turned itself into a platform for Chinese third-party sellers with Temu, Shein and their ilk.
Unless we take this on, we become a third world country and we have no economy left.
Consumers pressure companies to deliver low prices. Nothing new about that.
Our economy is hollowed out? What has happened to real GDP per capita? Just the facts, please.
Yes, competition does have negative consequences for those who cannot successfully compete. Should we prevent companies from moving from business-friendly states to protect jobs in states that are not business-friendly?
Should we have outlawed Amazon to protect domestic retail businesses?
With the money I (and time) I save using Amazon, I can patronize other businesses and spend more time doing other things, such as debating Trump’s tariffs! 🙂
You seem to be stuck on eggs and Trump and tariffs.
Maybe you should stop asking so many questions that no one ever answers. But then you would miss your obsession with trying to insult people simply to prove what a smart guy you supposedly are.
Mr Greenfield. You are very smart on many subjects. But real world economics is something you simply have no understanding of.
I have my weak subjects. I know nothing about say chemistry , carpentry , and plumbing. You and Trump have no clue about trade and economics.
Agree 100% that Trump and members of his administration have failed when it comes to communicating to Americans what he’s doing, why he’s doing it, the anticipated arc of consequences, etc. Shocking that they don’t realize how important this is. Mind you, if they do this, it doesn’t mean they won’t simply be peddling glossy marketing, but it is crazy that they don’t seem to realize what a bad job they’re doing laying out a plan and rationale, while giving people some kind of picture of what to expect over the course of the next several months. It’s pathetic and contributes to the impression that many have that the administraiton is operating in a rathre chaotic way.
Please explain how the standard of living for those relatively poor workers in other countries will be better off if we do not buy what they make. Should I have been prevented from asking from bids from local roofing companies because it would hurt all but the lowest bidder? It was the local Amish who ended up putting a new metal roof on (in sub-zero weather) and replacing my windows. Should we protect the non-Amish from such competition?
What should those countries do instead, enact much higher “minimum wages?”
Maybe we should have prevented farms from getting bigger to save the family farm.
“Corporate greed?” Is it “consumer greed” to want low prices? I’m not poorer because Bill Gates is richer. The economic pie is not fixed.
It is incredibly easy to come up with a mountain of examples in which unions and companies use the force of government to protect one group at the expense of others. See “Davis-Bacon Act” and “‘Minimum wage'” laws.
And please stop giving us daily homework assignments, Teach. This site is not your personal classroom.
He is just trying to educate you. Many people on here apparently need some good education on real world economics instead of just parroting protectionist nonsense.
The cheaper products are not cheaper after the market is captured. The low introductory prices of imports disregards losses, especially when such are subsidized by the exporting nation. When the supply from domestic production drops, demand keeps prices up.
If protective tarriffs are so foolish why do our trading partners all have them?
That’s like asking if welfare programs are so foolish why do so many countries have them? If inflation is so foolish why do so many governments inflate? If war is so destructive why do so many countries go to war?
If alcoholism is so harmful why are there so many alcoholics? If death is so horrible why do Muslim suicide bombers blow themselves up?
“Tariffs don’t make America great—they make life harder and worse for Americans. The proper trade policy for a free people is simple: Let people trade. If other nations choose protectionism, that’s their mistake. America should lead by example, showing the world that economic freedom leads to prosperity.
It’s time to stop letting politicians and special interests rig the game and start letting Americans make their own choices.” – Trump’s Tariffs: Immoral, Indefensible, and Illiberal by Nicholas Provenzo
Tariffs have been making America great since the days of Hamilton.
It isn’t tariffs that made America great. It was increased productivity caused by increased specialization. Did China’s Great Wall lead to greatness? The increased real GDP per-capita in China and India is not a result of more government control but less.
Did the Smoot-Hawley Tariff Act make America greater or did it worsen and prolong the Great Depression.?
Here’s a challenge for readers. Explain why poor countries cannot make themselves less poor by mandating higher wages.
I can guarantee no one will be responding to your challenges. You are so desperate to be relevant.
The tariffs in the thirties were responses to economic decline, not the cause of the already existing decline. The current tariffs are a response to the existing trade barriers, not a cause of them.
THX: “Why does no one pay attention to me? After all I am an Objectivist that hates Trump.
Answer: Apparently Trump doesn’t need or care about your tariff obsessions. He has guys who are smarter than you advising him. And you ain’t one of them.
As always, sucks to be you.
That was not the point. It was why should only the US tariffs be considered foolish and not the tariffs of other nations. Many against US tariffs say nothing about tariffs imposed by others.
Well said!
Just because all other foreign countries have so many foolish socialist policies, it does not mean they are not foolish.
First, they generate revenue for their governments paid for by their taxpayers. Politicians like government revenue. If you think the problem is that our federal government doesn’t collect enough revenue from Americans, then tariffs can help with that.
Second. Politicians and governments all over the world make many lousy economic decisions with socialist policies. There are many aspects of socialism that most countries in the world have implemented and the US is mostly alone in ‘not’ having those socialist measures. Like universal paid maternity leave for example. Tariffs are another economy slowing measure that most countries have and the US doesn’t, or at least we have had very minimal tariffs up until now.
So over the last 100 plus years, we have been alone in the world for the most part in not having any significant tariffs. We have also had the best performing economy in the world over that time.
Bingo. Amazing how that works.
Is that all FPM could come up with regarding commentary on the tarrifs?! This isn’t just fear-mongering on the part of the left, Trump is rolling the dice with our future in an unnecessary way. I have no idea why he’s ramped so intensely so quickly on this issue, but I haven’t heard a single member of the administration make the case for this. Is he stupid and/or do bad people have his ear?
He could destroy the economy, severe relationships with long-standing allies, and ensure no Republican is elected anytime soon. It’s absolute madness. Listen to Thomas Sowell and Ben Shapiro, among others. They are citing facts and it ain’t good. I am a Trump supporter and right now I am shaking my head about what he’s doing, bracing for a disaster of monumental proportions. No American should be asked to absorb what this roll of the dice could mean for us and our future.
I understand the worries and concerns. I would have opted for a comprehensive decoupling from China. The problem is Chinese manufacturers just set up shop in Asia and Africa.
I would have tried to build a western trading alliance, but I’m not the president. Trump opted for a big picture push. It’s a big bold move. We’ll see how it works out.
This view of “let’s see how it works out” is glib. Perhaps a person can hold that position if they’re wealthy and/or have enough years ahead to recoup losses, but for retired people this could seal their fate in unthinkable ways.
It’s also going to put pressure on businesses (as if they weren’t already struggling post-covid madness) in ways that will mean many fold.
Costs are already being passed onto the consumer as conversations with businesses in just the past two days have yielded them holding back giving costs and invoicing until they recalculate what their goods will cost in light of the tarrifs. This while Besset is out peddling the idea that passing on these cost doesn’t have to happen because overseas manufacturers and/or those who sell goods here could absorb the cost. Sure. Right.
And then there are our allies and how we’re treating them.
I could go on and on.
This is too big a risk to take and those who suggest we sit back to see how it goes are expressing an attitude that, if expressed during covid lockdowns for example, would have been admonished for the madness of that idea. Why is it ok to hold the view to wait and see in the face of something of this import and scale? In my view, it’s not.
Agreed, but Trump 1.0 taught Trump 2.0
that slow, careful, strategic moves planned and advanced to avoid disruptions and to accommodate willing and helpful partners and focus on ne’er do wells
just was not going to work.
Trump has 2 years to knock over the money changers tables – to coin a parable – and set a new course for America.
I for one see it as a NO-LOSE situation.
But then – I spent my whole career watching foreigners eat our lunch.
And the “winners” – loved here by the cowards – were not only cashing huge checks at our expense
but also funding Demokkkrats – and calling us names.
There is no problem in companies leaving China and relocate production in other non-hostile low wage nations. Importing more things where they can be made cheaper is a good thing as it increases our standard of living.
It would be great if we could decouple from China. But not for the protectionist fantasy of moving more production to the US. That would just make things more expensive.
It would take a world wide alliance and effort of free nations imposing sanctions to bring down and maybe eliminate the CCP. Kind of like we did the Soviet Union(though I credit Reagan more than the world to be sure!).
Maybe one day the free world will impose sweeping sanctions and bring down once and for all the evil CCP!
If someone stopped stomping your face,
would you be worried about how you’re going to look with bruises all over your face?
Dice rolls are for casinos. Trump is changing the casino. America has the economy to draw players to its casino instead of the world’s rigged one.
I have no fixed opinion on this topic and generally trust Trump. It isn’t really a non sequitur to ask if all the illegals that haven’t really been deported are still receiving full benefits, housing, medical coverage, and how about free phones – and what that costs the nation? My family cell phone bill is ridiculous.. We have. the strangest situation. Bleeding dollars to in one direction, losing jobs and money to foreign countries in another. I can do fine without foreign goods or funding foreigners.
From today’s Wall Street Journal, from an April 27,1978 speech by Nobel Prize winning economist Milton Friedman at Kansas State University:
“We call a tariff a protective measure. It does protect; it protects the consumer very well against one thing. It protects the consumer against low prices….”
Admittedly, this is not likely to sit well with the commenter who stated, and I quote,
“Being stupid enough to read the Wall Street Cornhole is nothing to brag about.” Reading the Wall Street Journal makes you stupid? Brilliant retort that!
Protecting American jobs and productive capacity is important. The WSJ is currently in favor of cheap labor, legal or not.
Milton Friedman is pure genius!
And from National Review,
“If trade deficits were inherently bad, we’d expect poor countries to have trade deficits and rich countries to have trade surpluses. In the real world, there’s basically no relationship, which is why economists don’t pay much attention to it. The United Kingdom, Japan, Egypt, and Uganda have trade deficits; Australia, the Netherlands, Russia, and Angola have trade surpluses.”
I’m sure the genius commenter who entertained us with “Tariffs are not intended to raise the prices of imports, nor will they significantly. ” will entertain us yet again with some disparaging, foul-mouth remark about National Review rather than address the point made.