by Michael Snyder, End Of The American Dream:
Over the past few years, there has been a tremendous amount of buzz about an imminent “reset” of the global economy. Well, what we are currently witnessing may not look like what they were anticipating, but a “reset” of the global economy is definitely here. Trillions of dollars were invested to set up the global supply chains that we have today. I have always argued that we should have never allowed ourselves to become so dependent on goods that are made elsewhere, and making more things in this country is a goal that every administration should pursue. Unfortunately, you can’t just reverse decades of investment and construct entirely new supply chains overnight. For example, it costs approximately 10 billion dollars to build a manufacturing facility that makes computer chips, and construction time can run between 3 and 5 years. So anyone that thinks that we can just hit a “reset button” and magically make things better is simply being unrealistic.
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We just witnessed the largest tariff increase in our history. Many companies that invested enormous amounts of money into global supply chains that were carefully calculated to give them a competitive advantage have just had their businesses ruined. At the end of last week, I wrote that the global economy “has already been moving in the wrong direction for quite some time, and now a massive amount of fuel is being poured on to that fire”. I do not believe that the global economy is going to be able to handle a shock of this magnitude.
Wall Street was certainly not ready to have someone press the “reset” button. At this point, investors are “selling first and asking questions later”…
The tariffs have sent shockwaves through global financial markets, raising fears of a worldwide economic downturn and sharp price hikes across sectors in the world’s biggest consumer market.
‘The Trump administration may be playing a game of chicken with trading partners, but market participants aren’t willing to wait around for the results,’ Michael Arone, investment expert at State Street Global Advisors said.
‘Investors are selling first and asking questions later.’
Hopefully you were able to get out of the stock market before the carnage started.
Many are hoping that President Trump will reverse course after witnessing what has happened on Wall Street, but we are being told that there will be no turning back…
Trump administration officials messaged that the tariffs are to be implemented, and are not up for negotiation, across the Sunday political shows.
“The tariffs are coming. He announced it and he wasn’t kidding. The tariffs are coming, of course they are,” Commerce Secretary Howard Lutnick said on CBS’s “Face the Nation.”
So get ready to see some shocking price increases.
For example, an iPhone could soon cost several hundred dollars more…
Shoppers may find their favourite electronics, including iPhones, will soon become much pricier due to the tariffs if companies pass the price onto consumers.
Despite moves to expand its supply chain, Apple still makes the vast majority of its iPhones in China, where hardware exports will be hit with a tariff totaling 54 per cent from April 9.
The cheapest iPhone 16 model was launched in the US with a sticker price of $799, but could cost as much as $1,142, per calculations based on projections from analysts at Rosenblatt Securities, who say the cost could rise by 43 per cent.
This is going to be a devastating blow to our standard of living.
Sadly, instead of seeking to negotiate with President Trump, the Chinese have decided to retaliate by hiking tariffs on U.S. goods…
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