Broker Check

Tariffs 4/4/2018

April 4, 2018

To Be Tariffs or Not to Be Tariffs …That is the Question……

For decades we have watched our once great manufacturing innovation economy turn into a pure consumption economy. Walk into any Home Depot and find items that are made in the USA, instead we see “made in China”. Many of these items such as tools are watered down versions of the tools you would find in other stores. Pricing is the end-all in consumption economies. Capitalism and the free market is the best system we know to create both innovation and fuel supply and demand. At what point, however, do we make our country closed for business? The Detroit Automobile industry closed for business. The Steel industry closed for business along with many other industries. They were all subjected to Globalists and Politicians that have sold out our economy for decades.
Tariffs have been in place for years… except it has been a war against the U.S. Try getting American products sold inside of China or Mexico and see what your tariff punishment is. India currently has a 100% (that’s right 100% tariff) on Harley Davidson Bikes being sold in India………. The trade war has been going on for years and we have done nothing to stop it.
The threat of tariffs has already seen countries come to the bargaining table. India says they will lower the tariff on Harley Davidson to 50%... still ridiculous but a start. The European Union seems to want to talk. China is now flexing some muscle but so is the U.S. for the first time. We constantly hear how much the U.S. needs China because they hold so much of our debt. Well the truth is they need us even more. Without the massive imports into the U.S. their economy with its phony numbers would probably collapse……
The market was full steam ahead for twelve months and now a pull-back, but timing might just be on our side to try this new strategy. With good earnings coming, 3% GDP, good job addition numbers, tax cuts, and corporations investing capital, the pull back might just be a blip that propels us into the future as a manufacturing innovator and giant!