Just a Trickle So Far

Economics is generally a fairly slow process but if you are a small business it speeds up a lot.

Much like how some households live paycheck to paycheck many small businesses live on a similar shoestring, with the significant deadlines being when invoices and payrolls become due.

They count on a certain number of sales and certainly if they can secure longer term contracts they have a bit more comfort.

This of course often mean they have promised to deliver product at a set cost for an extended period, counting on stable pricing and other factors.

As the cost of their raw materials increase due to the tariffs, what was once a profitable arrangement can easily turn into an unprofitable one.

So we see reports of businesses closing plants, laying off employees or deciding to move production offshore to reduce costs.

These reports concern the most vulnerable concerns and as they stumble slightly bigger firms soldier on.

The impact of the trade war is insidious since it both makes your cost higher, it makes your ability to sell to certain countries very difficult.

We are in a global economy and there is a lot of competition.

The tariffs are a disadvantage to our domestic producers even for product they sell domestically, since the prices will go up and demand will go down accordingly.

It isn't very much so far and the dontard lives in a fantasy where steel factories have sprung up in every corner of the country employing millions.

That's not true and any jobs created are once again, just a trickle.