Ok so here's the thing, that few people are talking about, well they are. But saying costs for American consumers will go up, isn't really helpful, so let me break it down.
First the easy one... coffee. America can't grow coffee it's just not possible to grow coffee there. So if America imposes say 25% tariffs on brasil for eg, guess what? Your $Starbucks(SBUX)$ coffee goes from $5 to $6.25, if you usually drink 5 cups a week as an American consumer that's going to cost you $6.25 extra every week. Going forward, you will be paying around 300 bucks more a year... just to get a week day coffee fix. Yes I'm oversimplifying, but that's just a cup of coffee people!
Start looking at everything else That the USA can't physically produce due to climate, topography etc. if I owned Starbucks stock, I'd be selling it now.
Next a more complex example. Steel. Even though American steel is comparatively way more expensive than say Chinese steel, tariffs cause Chinese steel to be a lot more expensive. As a result American steel manufacturers can charge way more per tonne, why? Because they can. its called supply and demand boys and girls. You can already see this in the third graffic below. American Steel prices have already popped. Steel is vital for many industries in the USA, so everything just got more expensive. EVERYTHING!
And then there is the admin costs to manage tariffs, a brand new cost. It's just obscene to be fair. You guys voted for trump, he is inconsistent, unreliable and untrustworthy. The rest of the world will desert America just as they have deserted the world. Please wake up Americans. Trump's politics will not make you great, they will make your poor and inefficient.
Just my humble opinion. Peace be with you.
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