TL;DR

Trump’s 20% tariff threat is a recipe for economic disaster, potentially triggering global trade wars, inflation, and a recession deeper than 2008. Ironically, his “liberation day” might bankrupt us all.

Story

Trump’s proposed 20% tariffs on all US trading partners sound like a twisted game of Monopoly where everyone loses except maybe the banker (US companies? Doubtful). John, a retiree relying on his 401k, sees his savings evaporate like morning mist. He’s not alone—investors are panicking, debating between bailing out and nervously “dollar-cost averaging” (‣ DCA: Buying small amounts regularly to reduce risk. Rarely works when everything’s crashing.).

This isn’t just a stock market scare. This is a potential economic earthquake. Remember the 2008 housing bubble? Imagine that but with everything. Prices skyrocket as a 20% tariff on all imports becomes a 40%, 60% price hike on everyday goods. ‣ Tariff: A tax on imported goods. Inflation eats away savings, interest rates jump, and the economy shudders like a train derailing.

This isn’t just about money; it’s about power. Trump, flexing presidential muscle like a toddler playing with matches, could ignite a global trade war. Countries retaliate with their own tariffs. ‣ Trade War: Countries exchange tariffs, hurting each other’s economies. US exports plummet, companies collapse, jobs vanish—like a house of cards built on sand.

Historically, tariffs have seldom boosted domestic industry. They usually trigger widespread economic pain. Think Smoot-Hawley in the 1930s, which deepened the Great Depression. This isn’t “liberation,” as Trump claims, but potential economic suicide. ‣ Smoot-Hawley Tariff Act: A 1930 law that raised US tariffs, widely believed to have worsened the Great Depression.

Advice

Diversify beyond US markets. Cash is king when the world’s on fire. Don’t trust politicians promising easy fixes—they usually make things worse.

Source

https://www.reddit.com/r/investing/comments/1johy3a/trump_to_announce_new_20_tariffs_this_week_on/