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Written by Andrew Lokenauth on 2025-02-03 at 14:49

President Trump says the pain from tariffs "will be worth the price."

But what does it mean for you?

I spent the evening analyzing it.

Here’s what you need to know:

https://www.thefinancenewsletter.com/p/tariffs!

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Written by Andrew Lokenauth on 2025-02-03 at 03:19

Do you think tariffs help protect American jobs or hurt consumers more?

I'll provide updates in my newsletter.

If this post was helpful, please:

Share this post and RT it to help others🔁

Follow me @FluentInFinance for daily tips

Join 100,000 readers and sign-up for our newsletter at TheFinanceNewsletter.com!

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Written by Andrew Lokenauth on 2025-02-03 at 03:18

7/ The Real Cost of Tariffs:

Contrary to some claims, foreign countries do not directly pay tariffs—rather, the U.S. companies importing the goods are responsible for paying tariffs to the U.S. government.

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Written by Andrew Lokenauth on 2025-02-03 at 03:18

6/ Who Really Pays & How They Affect You:

Importers absorb the cost: This eats into their profits and can potentially put some out of business.

Suppliers are forced to lower prices: If importers have significant market power, they might pressure their suppliers to reduce prices.

Costs are passed to consumers: Often, the most likely outcome is that consumers end up paying higher prices for goods.

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Written by Andrew Lokenauth on 2025-02-03 at 03:18

Tariffs have a ripple effect:

Rising Prices: As importers pay more, prices for consumers go up.

Business Decisions: Companies may change where they buy or make their products.

Trade Flows: Other countries may put tariffs on U.S. goods in retaliation.

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Written by Andrew Lokenauth on 2025-02-03 at 03:17

5/ How Do Tariffs Work?

When a product is imported, the importer pays the tariff at the border.

For example, if a toy is worth $10 and has a 20% tariff, the importer pays an extra $2.

Often, the importer adds this cost to the toy's price when selling it in the U.S., so you may pay $12 instead of $10.

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Written by Andrew Lokenauth on 2025-02-03 at 03:17

4b/ Cons of Tariffs

Critics Say:

• Higher Prices for Consumers: Most of the cost is passed to everyday shoppers.

• Inefficient Industries: Protected industries may become lazy without the pressure to be competitive.

• Risk of Trade Wars: Other countries may retaliate, leading to a global slowdown.

• Economic Uncertainty: Sudden changes in tariffs can hurt business investments and overall growth.

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Written by Andrew Lokenauth on 2025-02-03 at 03:17

4a/ Pros of Tariffs

Supporters Say:

• Protect Local Jobs: Tariffs can help American companies by making imported goods more expensive.

• Boost Domestic Production: Higher import prices may encourage companies to produce more in the U.S.

• National Security: Some argue that tariffs can protect industries critical for national defense.

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Written by Andrew Lokenauth on 2025-02-03 at 03:16

3/ The implementation of broad tariffs could have significant inflationary and economic effects:

• Core prices could increase by 0.7%

• Inflation might jump from 2.9% to as high as 4%

• Energy costs could rise due to tariffs on Canadian oil and gas imports

• Potential reduction in U.S. GDP by 0.4%

• Disruption of established supply chains

• Decreased consumer spending power

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Written by Andrew Lokenauth on 2025-02-03 at 03:16

2/ Tariffs Will Affect Everyday Life:

Cars:

• Vehicle prices could rise

• Auto parts costs would increase, affecting repair and maintenance

Food:

• Furniture imports from China could see 10-25% increases

• Electronics and household appliances would become more expensive

• Clothing and footwear prices could rise

Consumer Goods:

• Avocado prices could increase 90%

• Mexican beer brands might see price hikes

• Canadian agricultural including frozen foods, would become more expensive

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Written by Andrew Lokenauth on 2025-02-03 at 03:16

1/Because of new tariffs, the average American family could pay about $1,245 more per year for everyday items.

This includes:

• Costlier furniture and home goods

• More expensive clothes and shoes

• Higher prices for cars and car parts

• Pricier groceries, especially fruits and vegetables

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Written by Andrew Lokenauth on 2025-02-03 at 03:15

President Trump says the pain from tariffs "will be worth the price."

But what does it mean for you?

I spent the evening analyzing it.

Here’s what you need to know:

=> More informations about this toot | View the thread

Written by Andrew Lokenauth on 2025-01-28 at 19:20

I'll provide updates in my newsletter.

If this post was helpful, please:

Share this post and RT it to help others🔁

Follow me @FluentInFinance for daily tips

Join 100,000 readers and sign-up for our newsletter at TheFinanceNewsletter.com!

=> More informations about this toot | View the thread

Written by Andrew Lokenauth on 2025-01-28 at 19:16

What Happens Next?

Federal agencies must submit detailed reports on which programs are subject to the freeze by February 10, 2025.

After reviewing these reports, the administration may permanently reduce funding for certain initiatives or reinstate them if they are deemed essential.

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Written by Andrew Lokenauth on 2025-01-28 at 19:15

Why Is This Happening?

The Trump administration justifies the freeze as part of its effort to reshape the federal government.

The goal is to ensure that spending aligns with the president’s policy priorities, such as:

• Focusing resources on safety and national security

• Ending diversity initiatives that the administration deems wasteful

• Improving government efficiency by cutting unnecessary programs

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Written by Andrew Lokenauth on 2025-01-28 at 19:14

Housing:

Housing assistance programs could face disruption.

Healthcare and Social Services:

The freeze could delay funding for programs like community health centers and nonprofit organizations.

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Written by Andrew Lokenauth on 2025-01-28 at 19:13

The pause in federal funding could disrupt:

Education:

Federal student loans and education grants may be impacted. This could disrupt tuition payments, financial aid, and funding for school programs.

Disaster Aid:

Aid to areas recently hit by natural disasters may be delayed. This could delay rebuilding projects and financial aid for areas hit by hurricanes, wildfires, and other natural disasters.