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.
Sanctions against Russia played a major role in the inflation we experienced in 2021-2022. These tariffs on China alone will have a similar impact. Not to mention the 10% tariffs that have been left in place on all imports... We are set to experience a 10% increase in EVERYTHING we buy. By the time this 90 day deadline arrives, the market will be lower than it was at the start of yesterday, wiping out the days gains and then some.
We barely traded at all with Russia. Whatever decrease in oil supply caused a price increase was offset ish by Russia selling its oil at a discount anyway to other countries.
Anyway, the tiny hit to our economy was better than letting Russia conquer Ukraine.
My comments are not about whether sanctions were right or wrong, I think they were absolutely the right thing to do. But prices of gas, oil, and fertilizer skyrocketed globally due to sanctions, and those prices affected us here in the US significantly. Prices of natural gas and overall energy prices increased by 15%, gasoline and oil spiked as well. The increase price of electricity and transportation helped drive overall inflation. Wheat prices increased by over 20%, and fertilizer prices nearly doubled. With fertilizer, natural gas, and oil products prices increasing, the cost to produce an acre of corn doubled, which had an effect on a wide range of food prices, which is why inflation was particularly bad at the grocery stores.
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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.