Are Trumps Tariffs Going To Hurt The EU?

The world is becoming less connected again...

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[lukedetering]

I think a big problem with the tariffs on foreign goods is that if the rival domestic goods will also likely go up for certain products.

For example, let's say a foreign bananna and domestic banana are $1 each.

A 10% tariff on the foreign banana is then passed, to cause the foreign banana to be between $1.06-$1.10.

The company producing the domestic banana realizing they could make more money now charges $1.05 since it's clear the consumer would be willing to pay more with little drop in demand.

[gladysseaman]

100 years ago, the US became very isolationist and imposed high tariffs, as well as refusing most immigrants. This didn't completely change until Dec 7 1941.

[theredtechnician]

The world is deglobalising, I don't think anything can stop it now.

[avail]

Tariffs are good if domestic industries have an incentive to be developed.

[DavidSolimano]

The main issue with trade deficits isn't the actual exchange of goods for money but that the flip side of that is the other side wants to dispose of their currency and does so by purchasing physical assets in the deficit country. If you assume that all peoples in all countries believe and value the same things, that doesn't matter. If you assume that different peoples and different countries have different priorities, the sale of the physical assets of your country can be a very large problem.

[Philistine]

The global supply chain disruptions from a couple of years back gave another reason for concern. Global markets are efficient, but they're also fragile, and depend on things going smoothly at every step of a long process.

[mattgoettl]

This is one of my favorite channels on YouTube!

[Wordfishtrombone]

It’s like Americans (and others) assume that if imported good are more expensive, U.S. goods would be automatically cheaper, have the infrastructure, be the same quality, etc. If they were serious, they’d prop up domestic industries in addition to the tariffs

[rogink]

Never mind the UK leaving the EU, it seems Germany has. If UK is 6th/7th biggest economy, France is usually just behind, or sometimes ahead

[JennaGetsCreative]

Let's also not forget that Trump seems to forget that the US buyers are the ones who pay the import tariffs, not the foreign sellers. He throws this around with extra imports specifically on China like it's the foreign sellers paying for the privilege. It hurts the sellers because less will be purchased, but the additional money paid is domestic.

[HistoricalFanatics]

I’ve seen many lectures about tariffs from the mises institute, all they do is harm consumers in the USA, we pay the price

[dasha-minecraft]

"Caveman economics" was a very eloquent and sophisticated way of describing our current global economy. Please stick to this format!

[estraume]

You need to make a video on how demographics influence world trade. China is going through a demographic collapse that will impact their ability to produce sufficient consumer goods for the rest of the world in a few years from now. Maybe we can view the US tariffs as a way to build up domestic production before China stop producing stuff?

[SaladTosserk]

to clarify the actual effects of the steel tariffs - steel imports dropped by 24%, prices increased by 2.4%, HOWEVER, the production only increased by 1.9%. Meaning they made the industries that relied on steel imports shrink by 22%. So, sure, you kept the local steel industry going, but at the cost of countless other industries. Those down-the-line industries are the ones where the actual money is made. Making base-level products is incredibly low margin, which is why the west outsources it to countries with cheaper labour. So forcing that labour to be done in the US, instead of abroad, means that you can't have nearly the same total economic output.

Tariffs are meant to be used in security-related ways. For example, tariffing Chinese EVs, or microchip/semiconductor production. But, we have already shown that tariffs don't need to be the only way. The Chips Act, for example, created a ton of incentives for chip manufacturing in the US, and it didn't have to cannibalize the export market. Because tariffs are not a one-way interaction. They are incredibly easy to put into place, but incredibly difficult to remove.

[Friskni]

if it reduces the import and export of goods surely the oil value will plummet as well?

[Kafei]

The problem with Trump is his "America first" is looking more and more "America only".

[Matthew-.-]

He said it's mainly going to be used as a threat to keep US manufacturers from leaving.

[hehh]

toycat didn't say 2nd channel don't care... does this mean he cares now? or just he cares so little he can't even be bothered to say it

[lukem]

13:00 Update Germany has Concord Switzerland.

[peterfireflylund]

How can you bounce so much up and down when your chair doesn’t move at all? How is that physically possible?