Tariffs are an unequivocally ill-advised economic policy. They raise prices, impede growth, invite increasingly negative reactions among global players and create hesitancy and uncertainty among investors and corporate leaders.
As the chart below from market strategist Callie Cox illustrates, the current proposed tariffs against China, Mexico and Canada will dramatically impact the prices of many everyday goods for US consumers.
Less thoroughly understood by many is the fact that regardless of tariff levels, it will be very difficult for the US to minimize trade deficits since the US essentially acts as the primary global shopper. As the chart from Deutsche Bank highlights, the US consumes 29% of global goods while producing only 15%. Conversely, China Produces 32% of goods while consuming only 12%.
February 7, 2025
Tariffs are an unequivocally ill-advised economic policy. They raise prices, impede growth, invite increasingly negative reactions among global players and create hesitancy and uncertainty among investors and corporate leaders.
As the chart below from market strategist Callie Cox illustrates, the current proposed tariffs against China, Mexico and Canada will dramatically impact the prices of many everyday goods for US consumers.
Less thoroughly understood by many is the fact that regardless of tariff levels, it will be very difficult for the US to minimize trade deficits since the US essentially acts as the primary global shopper. As the chart from Deutsche Bank highlights, the US consumes 29% of global goods while producing only 15%. Conversely, China Produces 32% of goods while consuming only 12%.