White Bull has launched their long-awaited substack focused on business and the intersection of policy on business with a very solid piece on tariffs. This is particularly important, because both the media and most official government positions on tariffs are still stuck in 18th century critiques of European mercantilism and therefore take nothing that has happened and nothing that we’ve learned in the last 250 years into account.
Before the 2024 election Trump said, “Tariffs are the greatest thing ever invented.” While it is typical Trumpian hyperbole, it is not wrong. Following almost 4 decades of globalists being hell bent on eliminating trade barriers, US trade policy supporting exporting US manufacturing to Canada/Mexico with NAFTA, or China with MFN and then accession to WTO (thank you Bill Clinton + Laura Tyson), the US has essentially been subsidizing other nations at its own expense. Tariffs are one of many tools that the US needs to start using to recalibrate its place vis a vis the global marketplace.
The globalists in Congress keep saying that Trump doesn’t know what he is talking about when he discusses who actually pays the tariffs.They say consumers pay the tariffs. Well, they are (partly) right and everyone knows this. What they don’t talk about is that unless the producers who have tariffs levied on them reduce their wholesale prices, the cost to the American consumer will increase by retail price + the tariff %. American consumers are smart enough to shift their buying preferences towards better value, alternative products or wait on purchases until alternatives emerge. American manufacturers will be motivated to bring manufacturing back to the US, since profitability is possible again. Everybody in America wins! At Davos a few weeks ago, even the pragmatic Jaime Dimon came out in favor of tariffs, saying, “I would put into perspective: If it’s a little inflationary, but it’s good for national security, so be it. I mean, get over it.”
Tariffs were a very effective tool for the US during the 1800s, and between 1861-1933 the US had one of the highest average tariff rates on manufactured imports in the world. Is it surprising that after 1933/New Deal, tariffs started to disappear while being replaced by income taxes, sales taxes and a myriad of social programs started to emerge? Tariffs can be raised, lowered or eliminated entirely as needed. But taxes and entitlements rarely disappear creating virtually unlimited budgets for politicians to tap into or steal. And while there is always the danger of a trade war, it looks like many ‘deals’ will get cut to decrease US trade deficits with targeted countries before needing to actually levy the tariffs.
IT IS WHAT IT IS promises to be as significant in the business and technology space as FANDOM PULSE has already proved to be in the entertainment and culture space. If you’re running a side hustle or you’re a full-time entrepreneur with your own small business, you will definitely want to be a part of the conversation there. It’s something I’ve wanted White Bull to do for a long time, simply so I don’t have to, because it is one thing that we just haven’t had in the greater community.
We’ve just never really had a place where those of us who are active in business can discuss what is going on around the world in the context of our business operations, so I think this will be an important step going forward.