Trump promised voters tariffs are a panacea for the economy, but Walmart finance chief John David Rainey warned they will be inflationary for customers.
Seems like Trump uses tariffs as some magical thing. The entire idea of tariffs is to raise the price of imports for the purposes of protecting a domestic industry. Practically nothing walmart sells has an equivalent of being made in the US so I have no idea who they’d be protecting here.
The reality is that practically everything consumed in the US is made in China or sources components from China. What the tariffs mean in practice is that input costs are going to go up across the board making everything more expensive. Given that huge numbers of people are already living on subsistence wages, they don’t have much room to absorb a sudden cost of living increase.
I saw another post earlier this week where Walmart’s policy was being discussed on Twitter. People were absolutely insistent that Walmart’s price increases wouldn’t affect the things they buy because they (cough) only buy American made products. These folks actually think all of their food is locally grown, or that all of their gasoline is produced in the US. (Yes, a large portion is, but never all of it.)
And of course there’s still the continuing discussions about how tariffs will somehow force more products to get made in the US. Yeah that’s not happening either, companies are just moving manufacturing to other countries that will be less affected by the tariffs. I haven’t seen a single corporation yet publicly announce that “hey you know what, we’ll just give up our profit margins and pay a ton of money for entitled Americans to pick their noses instead of building your cheap 500-inch TV.” But gee, you know who would have built those products cheaply and locally? All those immigrants y’all are so desperate to kick out of the country. Why it’s almost as if MAGA can’t find enough ways to screw themselves.
The supply chains are so complex at this point that most people have absolutely no clue how and where anything is produced. Nor do they understand how hard it is to actually create supply chains from the ground up. The US has been trying to decouple for China for close to a decade now with basically nothing to show for it. Trump and his crew clearly don’t understand this, and think that if they just play tough with China then they’ll get what they want. The US is headed for some really bad times in the near future.
Seems like Trump uses tariffs as some magical thing. The entire idea of tariffs is to raise the price of imports for the purposes of protecting a domestic industry. Practically nothing walmart sells has an equivalent of being made in the US so I have no idea who they’d be protecting here.
Consumers aren’t gonna be happy when all their Amazon and Temu no-name made-in-china garbage becomes dramatically more expensive.
The reality is that practically everything consumed in the US is made in China or sources components from China. What the tariffs mean in practice is that input costs are going to go up across the board making everything more expensive. Given that huge numbers of people are already living on subsistence wages, they don’t have much room to absorb a sudden cost of living increase.
https://edconway.substack.com/p/globalisation-is-a-far-far-bigger
I saw another post earlier this week where Walmart’s policy was being discussed on Twitter. People were absolutely insistent that Walmart’s price increases wouldn’t affect the things they buy because they (cough) only buy American made products. These folks actually think all of their food is locally grown, or that all of their gasoline is produced in the US. (Yes, a large portion is, but never all of it.)
And of course there’s still the continuing discussions about how tariffs will somehow force more products to get made in the US. Yeah that’s not happening either, companies are just moving manufacturing to other countries that will be less affected by the tariffs. I haven’t seen a single corporation yet publicly announce that “hey you know what, we’ll just give up our profit margins and pay a ton of money for entitled Americans to pick their noses instead of building your cheap 500-inch TV.” But gee, you know who would have built those products cheaply and locally? All those immigrants y’all are so desperate to kick out of the country. Why it’s almost as if MAGA can’t find enough ways to screw themselves.
The supply chains are so complex at this point that most people have absolutely no clue how and where anything is produced. Nor do they understand how hard it is to actually create supply chains from the ground up. The US has been trying to decouple for China for close to a decade now with basically nothing to show for it. Trump and his crew clearly don’t understand this, and think that if they just play tough with China then they’ll get what they want. The US is headed for some really bad times in the near future.
It’s also worth mentioning that US trade is only a small portion of the overall Chinese economy. So, even if Trump cut China off entirely, the impact there isn’t going to be dramatic. It’ll hurt, but not nearly as much as it’ll hurt the US https://wits.worldbank.org/CountryProfile/en/Country/CHN/Year/LTST/TradeFlow/EXPIMP