this post was submitted on 28 Mar 2025
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US stocks were sharply lower Friday as investors digested souring consumer sentiment and inflation data that showed an uptick in one of the Federal Reserve’s key gauges, underscoring the delicate state of the economy as businesses brace for President Donald Trump’s tariffs.

The Dow tumbled 750 points, or 1.77%, on Friday. The broader S&P 500 fell 2.1% and the Nasdaq Composite slid 2.8%.

. . .

Wall Street was also grappling with Trump’s announcement on Wednesday of 25% tariffs on all cars shipped into the US, set to go into effect April 3. Trump also announced tariffs on car parts like engines and transmissions, set to take effect “no later than May 3,” according to the proclamation he signed.

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[–] Bzdalderon@lemmy.ca 1 points 10 months ago

This is also called a buy phase

Buy low, sell high

Trumps policies are expected to pass costs on to consumers but have the benefit of maintaining production and development internally which should long term keep more money inside the USA, hardening supply lines against foreign influence. Given that China is openly campaigning for war on Taiwan by 2027 latest, and they're responsible for close to 80% of critical imports to US minerals, this puts the US in a predicament which Trump (probably not on purpose tbh, I won't give him the credit) is preparing for.

Tariffs on raw metals and minerals have proven effective since his first term with significant improvements in domestic refinement.

-"Tardif pass-through and implications for domestic markets: Evidence from US steel imports" Ahmad et al. (2023).

This isn't shared by other aspects of the supply network though like finished products or more complicated manufacturing because market instability halts investment in those areas, so no development actually increases in the US and prices just increase. This is a fatal flaw in the tariff calculus that is hurting trade and the economy. Manufacturing takes years to develop and adapt, and no one will leap on that kind of investment without clear assurances.

[–] ubergeek@lemmy.today 1 points 10 months ago

Good.... goood...

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