TRUMP’S TARIFF

1. I give Trump three months before he will have to pause his high tariffs.

2. This is because his high tariff will hurt America more than the rest of the world.

3. The whole idea of tariff is to greatly increase the price of imports. This will make local products more saleable.

4. However this depends on the availability of local products.

5. America practically has no local products. This is because for more than a decade America had depended on imported products because they are cheap.

6. Even American products are produced in foreign countries because the cost is lower.

7. Thus Apple produces its iPhone mainly in China and India for sale in the world market, including in America.

8. If high tariffs are charged on imports, even American iPhone produced in China would cost one hundred and twenty percent more than in other countries.

9. America is not a big producer of iPhones. So if imports become costly because of high tariff, there would be no local iPhones to meet American demands.

10. Already Trump is forced to delay (pause) high tariffs on electronics.

11. The same problem will be faced by other products.

12. The result will be high increases in the cost of living in the USA.

13. If America tries to produce all these products in the U.S of A, the cost would be so high that they would not sell well. And they cannot be exported because they cannot compete in the world market.

14. So what is the effect of high tariffs on the United States of America?

15. It will be short of a lot of products, both essential and non-essential.

16. it would be short of many parts and components for many of its products which are sourced and produced by American companies in foreign countries.

17. Because of the tariff on imported products and the high cost of production in America, the cost of living in America will shoot up.

18. This high cost of living will cause wages to go up.

19. This will again increase the cost of production and living cost.

20. America will lose its foreign markets because its products cannot compete in the world market.

21. There will be lot of demonstrations by the people of America.

22. It will not become great.

23. I give America (Trump) 3 months.

24. Maybe more.

25. I may be wrong.

26. We will see.

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