Why Tariffs are confusing me

@vandana7 (101675)
India
April 5, 2025 4:20am CST
Ok...our market is down, so is yours. Where is the money going then? With interest rates dipping it may be Bitcoin or Gold or Real Estate....All three to a great extent non productive. But let us look at tariffs...and India. Majority of us are not rich enough to afford multiple cars per household. We manage with just one for the entire family. We do have two wheelers, but with petrol as costly as it is, we don't look at guzzlers for our vehicles. Our roads are not as straight and not as wide to facilitate faster speed, and we allow cows, dogs, etc. on roads, along with fastest vehicles...there are carts and wrongly parked vehicles which narrow our roads further. So automobiles...very little demand. What else can the US export to India? Most of the things fall in luxury category. Majority of us eat in steel plates, which can easily be passed on to next generations. We don't require corning and other products. We also do not hanker for brand names. So what can the US sell to us to get its pound of flesh Food, we can import from neighboring countries or even Europe, since transporting it across seas is time consuming and expensive. No study of the market out here has really been done by Donald Thumb and his cronies. Didn't someone say Thumb had filed for quite a few bankruptcies...there you know his business acumen. They just want to sell what is produced in the US to us, but there is no ready market here. Everything in the US is produced in large scale. All businesses are large. Here, we have small smaller smallest. So the smallest even if it sinks, there is someone to gobble it up, and grow a tad larger. And the small, if it loses the contract, can always enter into agreement with the smallest for offloading something, and reducing costs. So losses at this end will not be as much.............I feel. Especially since the smallest ones have their own markets.... Given the present situation, I for one cannot see, how the US will benefit in anyway with the tariffs. In Donald Thumb's shoes, I would have increased the tariffs in phases....check the profitability of the action at each step. That way, if the move was not advantageous, I could stop or retrace more easily. Sudden imposition of large tariffs, obviously puts large companies in serious problems for sourcing material. Whatever Thumb is doing is ...well....I would never do it that way. He may make America eat an humble pie, and if that happens, he won't be in a position to dictate terms, and the terms maybe even worse.
9 people like this
9 responses
@DaddyEvil (145724)
• United States
5 Apr
The US won't benefit from the tariffs unless/until people in the US begin producing all the products that were outsourced to other countries decades ago... And most people in the US don't want that type of job. They want higher pay and to spend less for the everyday things we buy... Which will soon be out of our reach because all our money will be going to put food on our tables and gas in our vehicles... We won't have extra money to buy anything with. Even groceries here will soon be out of reach for people like me... trump has made a huge mistake but his ego won't let him see or admit that.
3 people like this
@ptrikha_2 (47683)
• India
5 Apr
@DaddyEvil Well, US folks would have to bear some short term inconvenience enroute MAGA (Make America Great Again)! Just watch - after a few months, the Administration might tinker with some of the import Tariffs. Alternatively, the Government might subsidize some of the essential groceries, gas and medicines. However, the bigger challenge would be to start/bring back bigger manufacturing capabilities in US.
3 people like this
@ptrikha_2 (47683)
• India
5 Apr
@DaddyEvil Well, I was just commenting on the MAGA package ! While some of his explanation for the Tariffs imbalance was right, his slam bang approach is not right.
2 people like this
@vandana7 (101675)
• India
5 Apr
The problem with the US is its excessive law enforcement system. In addition, the minimum wages are rather difficult to maintain for smaller entrepreneurs. Larger capital outlay can only come from the rich. They prefer different set of goods for manufacturing. Small profit margin products then become non viable and have to be outsourced. The issue is small profit margin vis a vis the US conditions, the US minimum wages, and other aspects like land, legal costs, etc. Outside, they remain viable, because of lower costs. He needed to subsidize local industry and relax some laws for them, correspondingly imposing some tariffs. Over a period, it would be possible to have a thriving entrepreneurship, at lower levels, that becomes self sustaining.
2 people like this
@wolfgirl569 (114414)
• Marion, Ohio
5 Apr
I don't really understand them except that it makes everything coming in more expensive.
2 people like this
@vandana7 (101675)
• India
5 Apr
Not expensive for Musk.
2 people like this
@vandana7 (101675)
• India
5 Apr
@wolfgirl569 LOL...discrimination....a lot of nonsense is going on in the US and India.
2 people like this
@wolfgirl569 (114414)
• Marion, Ohio
5 Apr
@vandana7 His companies have asked that they not have to pay them
2 people like this
@RebeccasFarm (93571)
• United States
5 Apr
I know nothing nor understand it except that everyone is suffering.
2 people like this
@vandana7 (101675)
• India
5 Apr
He just bought himself a ticket to hell.
2 people like this
• United States
5 Apr
@vandana7 He did
2 people like this
@JudyEv (350692)
• Rockingham, Australia
5 Apr
I don't really understand the whys and wherefores. It just all seems horrendous.
2 people like this
@vandana7 (101675)
• India
5 Apr
Our leader did the same with demonetization, even though were were shouting on roofs against it. We incurred huge cost for that, and the reserve bank governor did not seek extension of his term, because he had to do what he was not willing to do.
2 people like this
@aninditasen (16964)
• Raurkela, India
5 Apr
I think he will increase the tariffs on imports from India.
2 people like this
@vandana7 (101675)
• India
5 Apr
How does increasing inflation in the US help him?
2 people like this
@aninditasen (16964)
• Raurkela, India
9 Apr
@vandana7 He can take the taxes and launder them. India too does the same thing with our taxes. They hardly invest anything in the development of India.
1 person likes this
@LindaOHio (186424)
• United States
6 Apr
I don't see any good things coming out of the tariffs. I see only more expensive goods and bad relations with other countries. Maybe it will encourage companies to make more goods in the US. Who knows?
2 people like this
@vandana7 (101675)
• India
6 Apr
Other laws would need to be tweaked and there may have to be a cap on how much lawyers can get their clients...some of the awards from big companies are so huge that I sure understand why they keep the product prices high.
1 person likes this
@ptrikha_2 (47683)
• India
5 Apr
Sudden, knee jerk decisions often make one go for a later course correction. Detroit & other centers in US used to had thriving automobile industry once. Ford was in the Indian market for long but could not make forays unlike Japanese and South Korean car makers and to some extent even European ones like Skoda, Renault etc. Harley Davidson bikes- yes they would benefit and so would California apples or some Liquors etc. Yet they would still be in niche circles. Anyways, with an upcoming Indo-US BTA : Bilateral Trade Agreement would sort some of the things. I would like to buy some fancy American Toothpaste for a few days. May be California Almonds could become cheaper
2 people like this
@vandana7 (101675)
• India
5 Apr
You already mentioned niche circles. LOL. Now, if it comes, most people would be conserving their money, so there will be no demand what so ever. LOL California almonds ...yeah...me too.
2 people like this
@jstory07 (143240)
• Roseburg, Oregon
8 Apr
igher tariffs is a bad idea all the way around.
1 person likes this
@vandana7 (101675)
• India
9 Apr
Everybody here is worried. Though there is not much to worry about. Because we don't export as much as we import. And what we import does not fall under the category of necessity.
@solidcodes (1777)
• Philippines
5 Apr
The purpose of Tariffs is to increase taxes on foreign imported products. This way people in India for example discourage from buying imported products because they are expensive than products (locally made) in India. So people in India will patronized the made in India products (Locally made) I wish Donald Trump hired an analyst or a quant before imposing tariffs because perhaps there are cons on imposing tariffs over looking hidden problems.
1 person likes this
@vandana7 (101675)
• India
5 Apr
Indian manufacturers will see a drop in profit, but will not be wiped out because our population is way too large, so they could offer it all cheaply to locals.
1 person likes this