Trade War 1806

      This post is not meant to be political, but just informational. The administration just imposed tariffs Wednesday on Canada, Mexico and the European Union on steel and aluminum. The result of that is those countries have responded with tariffs of their own. Those tariffs will cost Americans 18.5 billion dollars in the next year. On Thursday the first day after our new tariffs the stock market, specifically the S&P 500 index lost 4.5% of its value. That translates to 1.3 trillion dollars lost. You may not realize it but your 401-K retirement plans are heavily invested in the S&P stocks that make up that index.
      Those tariffs from the countries mentioned above will make prices of many American goods rise in other countries. That means we will not sell as much American made goods. That translates to loss of jobs here. US factory workers will be laid off, (Kansas City Harley Davidson plant just laid off 800 workers 2 weeks ago when the first word of the plan to impose tariffs leaked out) US farmers will not have markets to sell to overseas and to Canada and Mexico.
      If you plan to buy a new car, get it now because those prices will increase. If you want a new house, get it now. Canada is our main supplier of plywood products and they will rise sharply because of the tariffs we just imposed on them.
      The only light at the end of the tunnel is there will be no tariffs on China, so electronics will remain inexpensive for the time being.