Yesterday April 2nd, 2025, Trump dropped his big tariff on the world. Is this fair play? We won't really know, honestly. Time will tell with what he got going on. Now, he unveiled all of these tariffs, and the bottom line is: 10% for practically everybody—including Israel, the great American ally in the Middle East. They're on the list. All of these allies you’d think might have carve-outs? They’re all on the list.So pretty much every nation on Earth is on this list. Everybody’s got a baseline of 10%. That’s what we’re going to charge you to import goods into the United States.
And then there are the rest of them—some of them are higher than 10%. Many of them, in fact. It’s reciprocal. The idea is: “Look, you’re charging us a lot—so we’re going to charge you back.” said Trump.
One example is Vietnam. Trump says they charge us 90% when we import American goods into Vietnam. So he says, “We’re going to slap a 46% tariff on Vietnamese goods.” And by the way, a lot of stuff these days is manufactured in Vietnam, no longer China. It used to be “Made in China.” But if you check a lot of stuff now, you’ll see it’s “Made in Vietnam.” So this could have a big impact on the things you buy.
Trump is saying it will be 46% on Vietnamese goods. And how could you possibly be mad? It’s half the price, right? That was some back and forth with Vietnam.
So who’s telling the truth? Who’s lying? I don’t know, honestly. There are a lot of economists on this.
What we did see was that the market took a hit today because of the tariffs. This is just market reaction. It was expected. I don’t think people should panic just yet. But it fell so hard as it did in 2020 during the covid shut down. The sad irony is that Trump was the driver of the economy back then. This is so strange and worth this piece.
Nonetheless, it is interesting to see how this will all shake out. I understand Trump is taking a chainsaw—Javier Milei Argentina-style—to the government. There’s going to be immediate pain. Nobody likes change. That’s just fundamental to anything and everything: people don’t like change. I had a conversation with my people last week and the same was said. We all must experience this short term pain. At least some people understand this move.
So when you make a change, people kind of panic. The average American looking at their stock portfolio today will not be thrilled, guaranteed. Trump is a deal maker first, president second. I'm sure he is watching these reactions closely. But it also might not work. The whole world is not doing well economically as evidenced by the widespread outcry of economic hardships.
No worries, most MAGA supporters are also going to feel this pain in higher prices of goods. Like they said, we will all feel the weight of this.
I'm not an economist but my limited time in those classes in high school taught me that, the tariffs paid are not directed at the nation, but on the people of that nation.
You’re charging the American people. What you're trying to do is dissuade us from purchasing imported goods.
Goods made in America are often naturally expensive. That is why most goods are always produced elsewhere and sold here. Labor in America is not cheap.
This is definitely a game changer no matter the outcome.
So the economic pain on Americans? I don’t see that changing. I think the pain is coming. We’re going to have to readjust. The question is: will there be more jobs? Will the jobs pay better? Will we be able to afford the new price adjustments?
Maybe if our wages go up—or if the cost of other things that are draining us, like healthcare, college tuition, real estate—if those go down, then maybe it balances out. We’ll have to wait and see. I wanted to get a graduate degree in a medical specialty, I spoke with the university and the cost of the program for me will be $41,000.00 after all discounts. The point is that the costs of everything are off the charts.
This is going to be a shock. This is very much shock therapy for the nation as a whole.
So how are people going to react? How are companies going to react? We will see that fully in the next few months.
Mega companies like Apple, are they going to bring back its entire manufacturing to the U.S.? Will they bring their hoarded cash of hundreds of billions of dollars home? What will the cost of the new iPhones be if that happens? An iPhone manufactured in America will definitely cost more by factoring in labor cost alone.
Elon Musk is probably salivating over this thought—he’s talked about launching a Tesla phone in the past. Musk gained access to the government not by accident. He definitely wanted the wealth of data from the government. People think is generous by doing pro bono for the government. Well, if he can launch Tesla phones cheaper than Apple, when Apple brings its operations back home, that would be a win for an American company that already manufactures domestically. Competition is good.
We are all willing to wait and see how this pans out. But I do think it’s going to be painful, and I have low confidence that prices are going to go back down. I think we’re going to see prices go up. The question is: will it level out at some point?
If we can bring American manufacturing back, it will help a lot of people with employment. From a national security and sovereignty standpoint,too, it’s not wise to rely heavily on imports like we do now. We saw that during the pandemic. It’s just not a good idea. Imagine a nation who doesn't like you is making your antibiotics and other vital basic products necessary for life. Bad idea.
If this encourages us to buy local, buy sustainable goods, buy all American made —all of those are ultimately good things for the nation.
So we will see how this works out. Trump said April 2nd 2025 was Liberation Day. We will see.
No matter what, we have to bring American manufacturing basw back onshore. It’s going to be painful, very much so. No matter how you slice it. We just have to ride it out and see what happens.
Are you ready?
Stay tune and God bless 🙌
Pal Ronnie