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Precisely, and more worrying, it may mean that tariffs implemented that way may only be effective if they are permanent. But once Trump is gone, the next admini

Precisely, and more worrying, it may mean that tariffs implemented that way may only be effective if they are permanent. But once Trump is gone, the next administration will most likely drop the tariffs or at least scale back significantly. Which means that the market could be set for a much harder, much more durable crash. Tariffs are also a double-edged sword in the sense that all other nations will also boost their domestic production. This boost in production will remain even while tariffs are dialed back. Momentum alone will create uncertainty as to the nature of the world economy. We're in for a very rough ride.

dexterlagan 2y ago
To finish my thought: right now the market reaction is extreme, but it's fake in the sense that if tariffs were lifted tomorrow, the market would most likely go back to its former glory. In 3-4 years, once both domestic and foreign infrastructure has been built, it may not. If supposed massive investments are actually being made in US infrastructure, and that tariffs force companies to bite the bullet and stop producing abroad with cheap labor, what will happen when these incentives vanish? Will they go back to cheap labor? People will always prefer a 1k iPhone to a 2k iPhone. Especially if purchasing power has halved in the mean time. I'm expecting an extreme rubber band effect either way.