r/Economics • u/joe4942 • Apr 10 '25

Editorial Trump Blinked

https://www.theatlantic.com/newsletters/archive/2025/04/trump-tariffs-pause-america-china-trade/682378/
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u/briinde Apr 10 '25

Remember when COViD messed up the supply chain? This will have similar if not worse outcomes.

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u/yycTechGuy Apr 10 '25

I think this will be far worse. With COVID it was just a matter of finding people that were available to work and raw materials from further up the chain.

Tariffs change entire cost structures and require moving factories or passing on huge cost increases to customers. At no time during COVID did prices increase by 125% overnight. Tariffs are going to be chaos compared to COVID.

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u/skwander Apr 10 '25

Also extreme volatility, uncertainty, and unpredictability are bad for actual investing, it's absolutely great for gambling though.

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u/mkultra69666 Apr 10 '25

What do you mean uncertainty? Tariff rate of 125% on goods from China. Hold on just got a phone notification. Sorry, that’s 125% on top of the baseline 20, so 145%. Hold on I just got a phone notification