TL;DR

Trump’s trade war, meant to punish China, ended up hurting American consumers. Tariffs, like dominoes, triggered a chain reaction leading to inflation and market instability.

Story

John’s retirement vanished faster than free beer at a Super Bowl party. Why? Tariffs. Trump’s “spine of steel” trade war, launched in 2018, sounded tough—like making your neighbor pay for your groceries. But it was more like burning down your own house to spite the neighborhood.

Here’s how it worked (or didn’t): Trump slapped huge taxes (tariffs‣ Tariff: A tax on imported goods.) on goods from China, thinking this would force them to bend to his will. Imagine charging your friend double for borrowing your lawnmower. They’ll probably just buy their own.

China, instead of surrendering, found new trading partners. American companies, stuck with higher costs, either raised prices or went belly up. John, living paycheck to paycheck, couldn’t afford his usual Walmart haul (now “Made in Vietnam,” but pricier). His IRA? Decimated as markets tanked. Like the 2008 crash, interconnectedness meant everyone felt the pain.

So, what did we learn? Governments lie. Trade wars hurt everyone. Diversification matters (don’t put all your eggs in one basket). And sometimes, “steel spines” lead to empty wallets. Remind you of Enron? Hubris then, hubris now.

Advice

Diversify your investments. Question politicians’ promises. Remember: no economy is an island.

Source

https://www.reddit.com/r/stocks/comments/1jujayy/white_house_press_secretary_says_americans_do_not/