Trump Tariffs Just Collapsed The Stock Market

About this Video

• Video Title: Trump Tariffs Just Collapsed The Stock Market
• Channel: Sasha Yanshin
• Speakers: Sasha Yanshin
• Duration: 00:15:50

Introduction

This video analyzes Donald Trump's newly announced trade tariffs, focusing on their seemingly arbitrary application and the potential impact on the stock market. Sasha Yanshin examines the illogical nature of the tariff calculations, highlighting inconsistencies and the resulting market downturn.

Key Takeaways

• Arbitrary Tariff Application: The tariffs are applied inconsistently, with seemingly random percentages assigned to various countries, irrespective of actual trade barriers. The example of uninhabited islands with a 10% tariff is cited.
• Erroneous Tariff Calculation Methodology: The tariffs are calculated based on trade deficits as a proportion of imports, not on actual tariffs or trade barriers imposed by other countries. This method is shown to be flawed and nonsensical.
• Significant Stock Market Reaction: The announced tariffs have caused a significant drop in the stock market, with the S&P 500 down 3.4% in pre-market trading at the time of recording and 11% down from its February peak. Tech stocks are especially hard hit.
• Impact on Consumers: The tariffs function essentially as a sales tax on Americans purchasing imported goods, leading to increased prices for consumers.
• Limited Effectiveness of Tariffs: The video argues that the tariffs are unlikely to significantly encourage domestic production due to the long lead times required to establish new supply chains.