Markets are celebrating. How long before they realize that the China tariffs will destroy the profits of companies like Walmart, Apple, Dollar Store, Harbor Freight, etc, and a 10% tax hike on consumers across the board on all other imports? We are still headed for a recession, and the destruction from the greatest deal maker who ever lived will be lasting.
Let's not forget everything else he's doing because there is nothing good in the plan.
Not many companies have the margins to shrug off 10%, and if there isn’t a cheap domestic alternative everyone in the market will be raising prices.
Take coffee, tea, or chocolate: Americans buy a ton of those, there’s almost no domestic production, and most of the market lives on tight margins. Trump’s tax hike means that the average consumer’s choices devolve to paying more or buying less.
If they raise prices by 10%, consumers will buy significantly less. There's a sweetspot somewhere for max profit, it's not 10% and probably not 0% either.
Coffee and tea are very cheap when you buy from a retailer and make it yourself, 10% is nothing anyway. Stuff like starbucks have crazy profit margings. Chocolate is a delicacy that shouldn't be consumed in large quantities anyway. That shit should have a 200% tax.
Let's not forget everything else he's doing because there is nothing good in the plan.