Happy Monday everyone!Thank you for signing up for my newsletter. My goal with this passion project is to keep you busy people informed about the most important stories of the week! Today, we’re just covering one… arguably the most important at the moment! Let’s get into it… What are the Trump tariffs, and what does this mean? On Friday, April 2, The Trump Administration released a Fact Sheet on their government website outlining the newly imposed tariffs on various countries that perform business with the United States. The announcement read, “Today, President Donald J. Trump declared that foreign trade and economic practices have created a national emergency, and his order imposes responsive tariffs to strengthen the international economic position of the United States and protect American workers.” Huh? Let’s break it down… Quick Facts: Starting on April 5, 2025 at 12:01 a.m. EDT a 10% tariff was imposed on all countries. A tariff is just another name for a “duty” or “tax” on an imported good from another country. The point of tariffs is to raise the price of those imported goods, which in turn, encourages the consumer to purchase products domestically (within their own country).
Additonally… !!! PAUSE… If you want a simplified article that outlines this story well, the BBC is a fantastic resource!!!! LINK: What are tariffs and why is Trump using them? (BBC) RECAP… President Trump is putting an additional tax on all imported goods that are coming into the country, and yes, overall the stock market is DOWN- not super surprising! Why? Well, because companies like Apple, Microsoft and Nike all use IMPORTED GOODS TO CREATE THEIR PRODUCTS! The S&P 500 (an index that tracks the performance of the top 500 publicly traded companies in the United States like Apple, Microsoft, Nike etc.) fell 5% on Thursday, April 3 (the day after the initial tariffs were announced to take effect) which is it’s worst drop since COVID-19 summer (June 2020). NOW: China’s like.. I don’t think so! On Friday, April 4, China (in retaliation) announced a 34% tariff on all U.S. imported goods which will take effect beginning April 10. Same with the EU! The European Union has announced a 50% tariff on all imported American whiskey (in retaliation) but has paused this action until the middle of next month, in hopes of a reconsideration or possible new deal with the American government. What does this mean for Americans? Unfortunately, it looks like prices will go up, but most likely in phases. This great ABC News article breaks it down: With tariffs rising, here’s what you can do to prepare Regarding retail, companies can either take on the costs of the tariffs to stay competitive (keep their clientele) or, will pass the cost onto the consumer by raising the cost of the garment. Food prices are the most likely to kick things off, with fresh foods becoming more expensive first, followed by packaged foods and alcohol and then (estimated to be six months following) clothing. CRAZY STATISTIC: In 1980, 70% of clothing was made in America. Today, only 3% of clothing is made in America. So, to conclude, is a recession in our future? Maybe… WHAT DO YOU THINK? Do you think imposing tariffs like this was a good move or a bad one? What are your thoughts on the retaliatory measures of other countries? Something for you to ponder on this fine Monday… Talk soon! Wage peace. Xx, Marly
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