Trump Tariffs Will Be PAINFUL For All Americans (Do This Before It’s Too Late}

On this quick video, I want to talk about Trump's tariffs, how they will affect us, what are they, and in the middle of the video, I want to tell you how to prepare for these tariffs, right? Exactly what you need to do right now before it's too late. Now, first, let me give you an update. Tariffs were supposed to start on Tuesday, and just one day before, Mexico has decided to sort of work with the U.S., right? Let's take a look at this quick article. It says, Trump pauses Mexico tariffs for one month after agreement on border troops. That happened just this morning. It says, President Trump on Monday said he's pausing for one month his new 25 percent tariffs on goods imported from Mexico after the Mexican president agreed to send her soldiers to the U.S. border. Trump, in a social media post, said that during the pause, we'll have negotiations on tariffs. He also said, I look forward to participating in those negotiations with the Mexican president. The announcement of the pause came two days after he slapped those 25 percent tariffs on goods from Mexico and Canada. U.S. stocks, which had opened trading lower on Monday, regained most of those losses on news of this pause. And it goes on to say that both he and Scheinbaum said that the 10,000 Mexican National Guard troops that she is sending to the border with the U.S. will have the mission of halting drug trafficking from Mexico, particularly that of the deadly opioid fentanyl. Now, Trump also wrote that the Mexican troops will aim to stop the flow of migrants into the country as well. Now, Mexico's response to the tariff threat contrasts with that of Canada. Now, over the weekend, we heard kind of heard from Canada. Canada's prime minister, Justin Trudeau, said Saturday night that his country would now implement retaliatory tariffs, a 25 percent tariff against more than 155 billion in U.S. goods in retaliation for Trump's tariffs. So here we see, guys, that Trump, though he said he's not using tariffs as a negotiating tool or leverage, he, in fact, is using it for leverage because we can see that where Mexico has said, you know what, let's give in to some of the demands based on the fact that, hey, we don't want to have these big tariffs on goods coming from our country over to the U.S. So it sort of worked, at least for now, for Mexico. But let me give you a quick breakdown of exactly what tariffs are and maybe give you an example here, guys. Tariffs are just taxes that are imposed by a government on goods that are imported into the country from other countries. So imports that come in from other countries, we tax those. The main purpose of tariffs typically, guys, is to make imported goods more expensive, which can help protect domestic industries from that foreign competition. Right. And as we see with in this case, tariffs can also be used as a tool in trade negotiations or to generate some type of revenue for the government, which is what Trump said his tariffs were going to do. Right. He said he was going to try to balance out the trade differential between our country and Canada and Mexico and China. And he wanted to generate additional revenue to help our Treasury pay down our debt, etc. Now, we want to be clear about this. Tariffs are not paid by the country. Tariffs are paid by the company importing the goods. So this means companies here in America that use imported goods from, say, Mexico, Canada, China, those companies have to pay the U.S. Treasury additional money to import and use those goods from other countries. Right. It's important to note that tariffs already exist, guys, in a minimal way, but not to the extent that Trump wanted to levy them at 25 percent for Canada, 25 percent for Mexico and 10 percent for China. Now, here's the problem with tariffs for us. Tariffs can obviously cause prices to increase. And here's how. I'm gonna give you a quick example. Imagine Coca-Cola makes or manufacturers soft drinks in, say, Kentucky, but Coca-Cola imports certain ingredients to make their soft drink in Kentucky. They import certain certain ingredients from other countries. So let's say the U.S. government imposes a tariff of 25 percent on all Mexican goods coming into America. This includes sugar, which is commonly used in making their soda, Coca-Cola soda in Kentucky. So Coca-Cola says, we got to make soda. We need sugar. We're going to get it from Mexico. But the U.S. government has a 25 percent tariff on that sugar coming in to America, to Kentucky for Coca-Cola from Mexico. So now Coca-Cola, they have to pay an additional 25 percent tax on top of the cost of the sugar that comes in to make the Coca-Cola if they want to still import their sugar from Mexico. Right. So, for example, if Coca-Cola imported a ton of sugar and a ton cost a thousand dollars. Well, now with this 25 percent tariff, that ton of sugar is going to cost an additional 250 dollars. It's going to now cost twelve hundred and fifty dollars per ton for the sugar coming in from Mexico to our Coca-Cola plant in Kentucky. Right. So this increase, this increase in what Coca-Cola has to pay for the sugar increases their production costs. And so here's how it affects their business. This higher production cost that Coca-Cola now has to pay because they have to pay a tariff means that it costs more for them to produce the same amount of Coca-Cola. Right. Or soda. Right. So Coca-Cola is going to pass that increase in cost along to consumers by raising the price of their Coca-Cola because they have to spend more money to produce the same amount. So now they're going to pass that cost on to me and you to maintain their profit margin. They got to raise the price and hope that we will still buy it at that increased price. So now the can or bottle of Coca-Cola that was three dollars is now going to four dollars. Or here's the other option. Coca-Cola could lay off workers. Coca-Cola could say, hey, we want to reduce the cost of our increased production by laying off workers so that we now have to pay less money in payroll. If we pay less money in payroll, maybe we don't have to raise the price of that bottle of Coca-Cola from three dollars to four dollars. Maybe we can just raise it from three dollars to three dollars and 10 cents. Right. Because we lay off workers at our plant in Kentucky or the best case scenario for America is that Coca-Cola may decide to now use a domestic supplier of sugar so they don't have to go to Mexico and pay that 25 percent tariff. But now if they decide to use a local place for their sugar, it may cost them more money to use that local supplier. So your prices still may go up or maybe they use a local supplier that's not even supplying sugar right now. So that's so Coca-Cola has to build their own plant to harvest and make sugar right here and grow sugar right here in America. But that's going to take four or five years to procure the land, buy or build the building, get all of the operations in order. Right. That could take five, six, ten years to do. So it could take a while. Right. So the switch to U.S. suppliers is what America sort of wants or hopes for based on what Trump has said about what he wants the end result of these tariffs to be. But the big problem may be that all of the Coca-Cola's competitors who don't use sugar from Mexico may also raise their prices, too. So Coca-Cola raises its price from three dollars to four dollars. Well, now here's Pepsi or PepsiCo. They may not get their sugar from Mexico. The PepsiCo company may get their sugar from Arkansas or let's say they get the sugar from California domestically here in America. But now PepsiCo, because Coca-Cola had to raise their price, PepsiCo now can raise their price, too. And this is what people think may happen if you see companies raising their prices. Well, other companies will raise their price as well. So all prices go up. And the loser in all of this is a consumer because we all have to pay more money for a bottle of Coca-Cola. Now, here's what Trump has said. The extra money paid to the Treasury by these companies that have to pay the higher prices for the imports and pay the tariffs, that money is going to go towards paying down America's debt and doing things here in America to help American people as well as build out infrastructure and maybe hopefully bring back manufacturing to America. That's what Trump said. But people also believe Trump is using this as leverage, leverage to maybe balance out trade. There's a lot of skepticism, right? But the real cost of tariffs on everyday life impact consumer prices and increase the price of everyday items like food, electronics, cars, auto parts, clothing, furniture, all these things, right? The effects on the inflation and the economy are big and it means prices will overall go up no matter how you slice it, right? And of course, inflation as well, the rate at which prices go up could increase and will increase as well, perhaps reduce consumer spending, perhaps slower economic growth, right? All these are possibilities that happen when you have these tariffs. Now, the other problem with tariffs is that they can lead to a sort of a chain reaction, right? So when the US imposed tariffs on Mexico, the Mexican government came out and said, look, we'll work with you. We'll do whatever we got to do. Let's have this conversation. We'll send troops to the border. We'll do whatever we got to do to avoid this 25% tariff. The flip side of that is what Canada did over the weekend. Canada turned around and said, hey, we're going to impose retaliatory tariffs on you. And now we're going to put a 25% tariff on all the goods coming in from the US into Canada. So sometimes you get these retaliation things going on and you get sort of these trade wars that begin to happen, right? And when you get a lot of trade wars, you see sort of an economic slowdown in terms of in a global fashion, people start trading less, right? So you can maybe have some strained diplomatic ties between countries, less cooperation between countries, and then you get into rivalry and you see factions start to take place. These three countries versus these six countries and all this type of thing begin to happen. So this has more than just the fact that prices are going to go up for all of our everyday goods. There's bigger implications when you start talking about trade wars and retaliatory tariffs and so forth. So hopefully that gives you a picture of sort of how tariffs work and sort of the trickle down effect they can have on everybody. But with that said, we already see that one country has sort of capitulated, right? One country has sort of given in to and said, you know, we're going to work with you guys if you can hold us off for a month. And that was Mexico, right? But the bottom line for us guys is the cost of Coca-Cola, so to speak, in my example, will increase. You can pretty much guarantee that. Now for us, here's what we got to do. Here's my advice. Here's my recommendations, guys, for us as consumers. We got to plan our purchases out, right? If you know tariffs are on the way, maybe they've been halted for a month for Mexico. Maybe Canada ultimately will be halted as well. But there's a good possibility that these things ultimately will take place, right? Matter of fact, Canada is still on. As of the making of this video, we have not paused the tariffs for China and Canada. So tariffs could be on the way. But as a consumer, we have to consider going out and buying these durable items like appliances and things like that. Go ahead and buy them now because in two or three months or maybe even less, those things are going to go up in price. The other thing you want to consider is supporting local, right? Look for products that are made in the US that may not be affected by these tariffs, right? So that means local products, local goods that are made with most parts, if not all parts, in America. And then, of course, always compare and use comparison tools. Compare prices online and in stores. Be a little more cognizant about, okay, this washer and dryer brand versus this washer and dryer brand because the price for these things, you might see more of a differential in the price between same items, but different manufacturers, right? And always look for your discount and your deals and things like that to help save money and shop around. And one thing we can always do is visit our budget and look for ways to perhaps lower our expenses, cut some expenses, pay a little bit less money for certain things, or stop buying certain things and focus on those needs more than those wants at this time as prices go up. Prices are going to go up, but your wage, it may not go up. We may not just see the price of consumer goods go up. We may see some layoffs, some companies having to lay more people off. So, you got to be looking for ways to maybe store up some emergency money as well so that you have some money in case there's some issues down the road with your job. Now, if you're a business owner, you want to make sure, again, you invest in local production, right? If possible, shift some of your production to domestic facilities so you can avoid some of those tariffs and then negotiate with suppliers and local suppliers. Talk with your suppliers, whoever's supplying you what you sell or need to produce what you sell. You got to do some negotiating perhaps and diversify your supply chains, right? If you're a business, don't rely on a single country to get all your stuff. If you're importing everything from China, don't just rely on China. Perhaps there's some other places around the world that are supplying and making what you need to manufacture or make whatever your end good is, right? So, explore those multiple sources to reduce your risk of having all of your supplies coming in for one of these countries that has these large tariffs, right? So, the bottom line is this, tariffs are like a financial penalty on these imports coming in. They almost always lead to higher costs for consumers and for businesses, right? So, Trump's tariffs are going to be painful and they're going to lead to higher costs for us, at least in the short run. We know that's a fact and perhaps inflation. So, you got to do these things before it's too late and stay tuned to this channel. If you're not a subscriber, please subscribe. We're going to keep you posted on these tariffs and what's happening with this because ultimately, these tariffs are going to affect our bottom line and our personal budget in our own household. So, we want to stay up to date and know what's going on with them. If you got value from this video, smash that like button for me. Share this video with somebody you know and drop me a comment. Let me know, are these tariffs good for America, bad for America? Are you ready for them? What are you doing to prepare for the tariffs? Let me know in the comments below and we'll keep you updated on this channel. Hey, the best person who's going to take care of the OU is the young you. Guys, take good care of yourself and take care of other people. Until the next video, peace.