Monday, August 26, 2024

Tariffs? The Prices Dropped Last Time

 Since it is coming up again, let's review import prices when Trump Tariffs were applied.  

This was not a result of mercantilism; it was a result of STATE mercantilism, which took the form of  devaluations of foreign currencies of China and Europe.

Now flash back to our post on interest rate manipulation.  The Fed will be decreasing rates, which will have the effect of devaluing the USDollar thus working against the strong dollar.  It will be interesting to see how it plays out, assuming Trump is elected for the third time.

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