Tariffs & the Market - Brace yourselves & your portfolio's

[SharkTanked]

On 3/4/2025 at 10:09 AM, bornontheblue said:

Apple, Taiwan Semiconductor, and Honda have already shifted their focus to manufacturing in the US. 

Honda just announced they are going to build the Civic in Indiana now instead of Mexico. 

Some has come back which is good, but its more about all the parts and components in American cars.

On 3/4/2025 at 10:11 AM, bornontheblue said:

Dairy production is massive. 

It's a big deal in Idaho, the central valley in CA and in Michigan and Wisconsin. 

If it is massive, they probably are not hurting under the existing Canadian tariffs, but in MI and WI will get to see a 10% energy increase.

[bornontheblue]

On 3/4/2025 at 11:15 AM, SharkTanked said:

SOme has come back which is good, but its more about all the parts and components in American cars.

If it is massive, they probably are not hurting under the existing Canadian tariffs, but in MI and WI will get to see a 10% energy increase.

Well ideally , all tariffs should be dropped and we can all compete on an even playing field. Nobody is willing to do that though. 

 

[SharkTanked]

On 3/4/2025 at 10:19 AM, bornontheblue said:

Well ideally , all tariffs should be dropped and we can all compete on an even playing field. Nobody is willing to do that though. 

 

That's not economic reality though. Smaller economies do need protectionist policies to support their people's livelihoods. Not everyone in Canada can make it into the NHL.

The whole concept of the elimination of all trade deficits is untenable. It does not deal in the reality of different resources and population dynamics (not to mention cultural/social priorities) in different countries. That would mean that everything else should be equal (including per capita GDP). It starts to become an argument for Communism.

[renoskier]

On 3/4/2025 at 10:00 AM, bornontheblue said:

Dairy Farmers in the upper midwest, and CA, and ID would love the additional market for Milk and butter, and cheese etc. Tariffs on other AG products like lumber, grains, soybeans are all prohibitively high with Canada as well. Canada is not getting screwed here, and they have room to give in negotiations. 

China, the EU, the UK, Canada, Mexico all have a lot more to lose in a trade war. They export a lot more to us than we do to  them. 

do you understand why Canada "tariffs" US dairy?

maybe because our government heavily subsidizes the industry

 

we, the USA, often criticize other countries for anti-competitive subsidies in various industries, Airbus in the EU and solar panels in China come to mind, but we also play this game and are not blameless

[bornontheblue]

On 3/4/2025 at 11:26 AM, SharkTanked said:

hat's not economic reality though. Smaller economies do need protectionist policies to support their people's livelihoods.

You are getting into central planning of economies now which never ends well.  Other countries can do just fine without protectionist policies. Frankly , there are many other niches that other countries can do better than the US  does,  and those countries should be doing those things. It is not our job to ensure the well being of every country on the earth. 

I don't think eliminating trade deficits completely should be a high economic priority either, however "true" free trade benefits everyone and we have never been close to free trade, often we are on the wrong side of it. Retaliating against us with tariffs of their own is only going to hurt other countries more than it does us , because they need our consumer market, more than we do theirs. We have the leverage here. 

[bornontheblue]

On 3/4/2025 at 11:34 AM, renoskier said:

do you understand why Canada "tariffs" US dairy?

maybe because our government heavily subsidizes the industry

 

we, the USA, often criticize other countries for anti-competitive subsidies in various industries, Airbus in the EU and solar panels in China come to mind, but we also play this game and are not blameless

I agree. AG subsidies are a form of protectionism and should be eliminated. 

Subsidizing corn for Ethanol hurt more people in higher food prices than it helped. 

[CoachKenFTW]

Don't worry about my portfolio. I built it to benefit from every market condition. Volatility like we are experiencing now is especially nice because quality is on sale. 

Since New Year I've added hundreds of shares each of SPY and QQQ, and thousands of shares of SCHD.

[SharkTanked]

On 3/4/2025 at 10:37 AM, bornontheblue said:

You are getting into central planning of economies now which never ends well.  Other countries can do just fine without protectionist policies. Frankly , there are many other niches that other countries can do better than the US  does,  and those countries should be doing those things. It is not our job to ensure the well being of every country on the earth. 

I don't think eliminating trade deficits completely should be a high economic priority either, however "true" free trade benefits everyone and we have never been close to free trade, often we are on the wrong side of it. Retaliating against us with tariffs of their own is only going to hurt other countries more than it does us , because they need our consumer market, more than we do theirs. We have the leverage here. 

I can agree with all that. I am not philosophically opposed to tariffs, but like the DOGE situation, I am opposed to how they are being rolled out. I don't think either of these things should be handled in a blanket fashion, but should be industry (program) specific to maximize benefit. 

[FresnoFacts]

Trudeau announced tariffs on US products entering Canada in response to the Trump tariffs.

Trump immediately said he will increase our tariffs on Canada as our reply.

Going to be a fun ride.

 

"In a post on Truth Social, Trump said: “Please explain to Governor Trudeau, of Canada, that when he puts on a Retaliatory Tariff on the U.S., our Reciprocal Tariff will immediately increase by a like amount!”"

https://apnews.com/article/trudeau-trump-canada-tariffs-us-5d5ef8bd41c4567926d543a9526b2e84

[retrofade]

[AztecAlien]

Corporate America is going to continue to gouge American consumers and blame it on the new tariffs on Mexico, Canada, and China. They have been gouging Americans without those tariffs in place. The left, even though they have been, and will continue to be gouged, will jump for joy when prices increase so they can play the blame game. Just another win for corporations. 

The U.S. has not gotten a fair deal when it comes to any free trade agreements recently or in the past.  Mexico, Canada and China need the U.S. more than many understand. 

 

[SDSUfan]

On 2/2/2025 at 5:07 PM, The Barber said:

If you are a Senior Citizen, what is your strategy on this?

Move everything to bonds?

Maybe actually care about gold and silver?

@GregoryPierreTolkien 

 

66yo here.

Buy the dip

Once you figure out the game, it's easier to play.

Movements based on the news cycle are mostly tantrums designed to create large movements.

 

[SharkTanked]

On 3/4/2025 at 10:52 AM, FresnoFacts said:

Trudeau announced tariffs on US products entering Canada in response to the Trump tariffs.

Trump immediately said he will increase our tariffs on Canada as our reply.

Going to be a fun ride.

 

"In a post on Truth Social, Trump said: “Please explain to Governor Trudeau, of Canada, that when he puts on a Retaliatory Tariff on the U.S., our Reciprocal Tariff will immediately increase by a like amount!”"

https://apnews.com/article/trudeau-trump-canada-tariffs-us-5d5ef8bd41c4567926d543a9526b2e84

Again, I don't know what the end game here is or how long it is going to take. So much stupid happening though.

[UNLV2001]

[CoachKenFTW]

On 3/4/2025 at 10:59 AM, SharkTanked said:

Again, I don't know what the end game here is or how long it is going to take. So much stupid happening though.

The end game is to abolish the IRS, and replace taxes collected with tariffs.

[UNLV2001]

On 3/4/2025 at 11:05 AM, CoachKenFTW said:

The end game is to abolish the IRS, and replace taxes collected with tariffs.

That's right in the wheelhouse of the moronic thinking of the LOSS  !!

[CoachKenFTW]

On 3/4/2025 at 11:06 AM, UNLV2001 said:

That's right in the wheelhouse of the moronic thinking of the LOSS  !!

Hi irony for someone from Nevada.

[UNLV2001]

On 3/4/2025 at 11:07 AM, CoachKenFTW said:

Hi irony for someone from Nevada.

Can see why you're a LOSS fan........you don't make much sense either 

[CoachKenFTW]

On 3/4/2025 at 11:10 AM, UNLV2001 said:

Can see why you're a LOSS fan........you don't make much sense either 

LOL, Trump literally wants to copy how your state finances itself: no income tax, and an effective sales tax for access to the market.

[UNLV2001]

On 3/4/2025 at 11:17 AM, CoachKenFTW said:

LOL, Trump literally wants to copy how your state finances itself: no income tax, and an effective sales tax for access to the market.

Same with Florida & Texas I suppose