….didn’t happen again. Because as I’ve pointed out there are many buffers and even if it was all passed through it would be a small one time effect on consumer spending.
The markets soar again and some pundits are actually saying a bit more inflation than we are getting would actually be healthy….hahaha.
And as I write this the head of Morgan Stanley M&A says the environment is much more predictable for big acquisitions under the new administration. Biden’s roadblocks are being removed step by step.
He also says there is a step function in infrastructure build….be it roads or tech capacity, it’s like a new Industrial Revolution. This is being driven by industry, but encouraged and enabled by an administration that’s actually engaged.
The tariffs have been in action for very little time... First thing first, the Trump administration promised a decline in prices, prices should go down, it is not about a moderate inflation rate (which is by the way an integrated component of liberal economics), it is about prices going down, which is not the case at the moment. Things do not get cheaper. They are getting more expensive as wages are not absorbing the rise.
It will take time to assess the effects of the tariffs especially as this farce has revealed its political goals, tariffs are not merely motivated by economical considerations but are used to serve political goals.
In this context, economical actors are expected to be cautious, even though they may support Trump's use of tariffs as means to achieve political goals, they prefer not to expose it publicly. Beside, Trump is also ferocious and quick to blame others for his own shortcomings. So if inflation has gone crazy, Trump would have blamed firms and stuff. So economical actors prefer to dilute over time the effects of Trump policies. And another part is Trump has corrupted the institutions as his executive orders serve as a counterweight to policies voted by the legislature, legislature that voted as Trump demands them to. In this context, there is the general law and all the exemptions one can get from enjoying Trump's favours. Better not to anger the man since he can undo any bad effect as long as it has asked nicely.
As the environment being much more predictable for big acquisitions, it is a telling comment. People do not even know what deals are signed, if deals are signed. Japan has its own version, the UK have their own version, the EU has their own version. The EU version differs by an ocean so to speak. The EU reports that the money transferred to the US is the result of agreements made by private sectors while Trump reports something that looks like more a tribute than anything. The EU is set to transfer 600 billions more to Trump so Trump uses them as he wants to use them. That or 35 per cent tariffs are applied. How predictable all this environment is, probably the perception will differ much depending on whom is asked.
Actually If companies are going to increase prices to cover tariffs it’s better to do it soon and link the price increase to tariffs. If they wait too long it looks like an unrelated, out of step increase which retailers tend to resist. What’s happening is part of the price is US costs and profits…not tariffed. A number like 60% is likely tariffed.
And because the markets are very competitive manufacturers are eating part of the cost to maintain market share and there is also substitution to domestic products. The net of all this is a very modest impact, and only one time.
The market reaction tells you the number is lower than the economists projected…in part because they don’t understand the corporate dynamics .
No, the tariff farce has explicitly revealed itself as politically driven. Firms and all the other economical agents are to be cautious about not picking sides publicly. Especially as Trump has attached many outcomes to his policies that should benefit the US general public. Trump is a liberal, his plan is perfect and destined to succeed. The only way it will not is because of people who are unfit for the plan. Liberals have designed the best possible organization and when it does not work, it does not come the way things are organized, it comes from people. Liberals invert things. So when the prices do not go down as Trump has told it they would, that wages are not rising fast enough to provide an increase in purchasing power, Trump will be quick to lay the blame on many other people but himself. Revealing outright that an increase in prices is directly tied to Trump's policies is a very poor decision to make.
Firms are not the only ones with vested interests in the dilution of the tariffs, the retailers too have the same vested interests. They are eating their margin at the moment, there are negotiation between all the actors involved in this quagmire and at the moment of the negotiation, everyone takes a bullet for the team..
Early data show that foreigner exporters are the least affected, the blunt of it is burdened by US economic agents and that postponing a rise in price is the name of the game at the moment, either through stock management or eating the margin...
Too early to assess this situation that may never be assessed by the way.
It took a while for the impact of tariffs to set in, but when it did happen - the impact has been profound.
Tariffs are not the only factor in the affordability crisis in America, but they are the most significant.
TACO Trump has done his usual thing, and reversed tariffs on foods. As Ronald Regan said, Tariffs are a tax on people. It seemed the origin country did not eat the tariffs, nor did US retailers reduce their margins. It was just passed onto the consumer.
Americans are experiencing a pronounced affordability crisis, with sharp price increases across essential and discretionary products in 2025. The categories with the biggest price hikes are household necessities, transportation, and select food items.
The following products and services have seen the steepest year-on-year price increases:
These increases make clear why Americans are feeling an ongoing squeeze—the cost of inescapable household goods, essential foods, energy, and insurance is rising much faster than wages for many, driving the affordability crisis.
SB
Let me explain intenal economic problems in production caused most inflation. In 2021 there was a major increase in petrol prices and that caused inflation to rise, Another example is the fact that food production was undemined by the sanction on Russian imports and as expected the USA just ignored rheir own sanctiosn. I will give you a typical example as to what caused massve disruption in the agriculture sector, The USA imports all its fertilizers from two countries Rusisa (80%) and China (20%). Blinky the useless and retarded Secretary of State tried to negotiate a deal with Russia on the fertlizer issue and all that followed was that Putin increased feritlizer export prices by 400%. The Autopen President passed the import price costs to the farmers and they cut agriculture output by 20% - combined food prices over the four years the Autopen ruled in the USA alone increased by 26%.
The Democrats screamed about Obamacare - but the inflation in meddical costs but in the four years 2021 to 2024 medical expenses. increased by 100% and Medicare and Medeiaid was looted by more than $200 billion. Trump knew the Pharma Industry was pushing prices of medicine to end up 80% higher than the prices of similar medicines in the UK and EU. So he stopped the racket and cut medicine prices by proclamation by 50%, The only sufferers were the ultra-corrupt Pharma Industry.
In the USA rentals incresed by 7% per year - while Biden was President and electricity costs by 9%
In Calfornia - a state where a part of Los Angeles burned down because there were n water conected to the fire hydrnts - and where electric supply is regualrly ruined by undergrowth fires - the prices are double what it is in the rest of the USA - bar in ths case of New York and Chicago. As a result millions of internal migrants fled to states lie Texas, Florida and South Carolina and that was the main reson for the loss of the 2024 election.
What I drive at is when internal amladministration in countries occurnflation rise atatically and what you wrote above is illiteal BS. In any event where dod you get that tripe from - it is indeed believable if it applies to California - but the official inlation rate is only 3% and the BS you came up is not what reality is on the ground. You talka bout inlftion - but Government waste and maladministration caused more inceases in living cost than inlfation does,
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Yes, inflation is similar to what it was towards the end of the Biden era.
That proves tariffs are worsening the affordability crisis, rather than inflation.
3% is not terrible inflation, ideally closer to 2%.
The inflation problem was world wide and caused by Covid, and then Putin causing an energy crisis.
However, Bidens administration got Americas inflation down faster than many other Western countries.
The effect of tariffs are included in the inflation number. In theory this should be a one time spike in inflation, a permanent addition to prices but not to inflation.
-Red states are doing worse. Blue states and purple states are doing better.
Texas and Florida are low-tax havens that are attracting resources developed in higher tax regions.
Big Tech are moving much of its operations from California to Texas to get lower tax rates. They have become the Ireland of America.
Looks mixed to me…how do you conclude blue states are doing better?
Most of the states marked red are the strongholds of Republicans.
Florida is a purple state - but I doubt Texas or Florida would be much without the brains of the blue states.
For example, Big Tech is moving much of its operations from California to Texas to gain lower taxes. So it is a brain drain scenario.
Most red states are consumers, whereas Blue states have traditionally created most of the producers.
ME, MA, MD.VA, GA, IL, MN, MI, WA and OR were all Democratic in the last election and red on your map. That’s 10 of the 16 States that are in recession/high risk.
SB
Florida is a purple state - but I doubt Texas or Florida would be much without the brains of the blue states.
For example, Big Tech is moving much of its operations from California to Texas to gain lower taxes. So it is a brain drain scenario.
Idicoy ssupreme expected from a totaly ignorant BS spreader brinwashed idiocy. In State schools controlled schools run by Republicans euction evels are at least 100% better than in states run by Democarts. The level in such education leaves children unable to read as a result of dismal school education. The thinking majority in tates like California send their children to private schools or fled from states like California, New York, Illinois and Minnesota.
In the past industrial output was in the main in what is now called the Rust Belt states - Wisonsin, Michigan, Pennsylvania - but it is now just reason called the Rust Belt States because of export of industrial productivity encouraged by the Democrats, In State elections they still vote Democrat and in two of the last 3 national elections they vote for Trump. Electionsa re totally corrupt in those states anyway. and ahs been in 2020 as well.
The only States where indusrial output is in fact groing are Republican States like Texas, Florida and South Dakota - in other S tates contrleld by the DP it is declining.rapidly.
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Their is no denying the brains in Blue states, and lack of brains in the Red States.
If the red states never had the blue states, we are talking 2nd world stuff.
No only dim brianwatched idiots like you, would believe that garbage. Education levels at least at 100% are better in Republican States than in Democratic States and children going out of Democratic State controlled schooling are mostly unemployable and in places are genreous and pay them epanuts - but include re-education programs tog et them better educated, More people send their children to private and religious-owned schools and most of those are Reublican Party supporters,
Youa re talking shit brainless idiot. .
Cobra I give you Clever, enjoy!