Now that we appear to be going through with tariffs on other countries, here’s a list of products that the U.S. produces that will be hit by tariffs before they enter these other countries:
Canada
- Chocolate
- Whiskey
- Maple syrup
- Washing machines
- Cucumbers
- Sailboats
- Roasted coffee
European Union
- Peanut butter
- Motorcycles
- Cranberry juice
- Denim
- Corn
- T-shirts
Mexico
- Apples
- Blueberries
- Pears
- Sausages
- Pork
- Lamps
China
- Soybeans
- Cars
- Frozen orange juice
- Fresh beef
- Frozen boneless beef and beef chops
- Aircrafts
These tariffs will be devastating to small businesses that rely heavily on exports. For example, I could see a small Vermont maple syrup producer that exports to Canada losing a ton of revenue to domestic producers in Canada due to this tariff.
But, based on this list, I think the people that are going to be hit the hardest in the U.S. are the farmers. Just look at the tariffs on corn, soybeans, pork, and beef. They are probably the weakest group that can weather this storm.
I don’t know if tariffs are the best way to help our economy grow but I do know that, historically, there are no winners in a trade war and I think these countries, especially China, can outlast us in a game of chicken.
For Trump, tariffs are a weapon for his type of negotiating style, which is what I call the Highlander technique – There can be only one. This is a binary outcome. You’re either a winner or a loser. He does not believe in a win-win outcome when negotiating, although this strategy is much more beneficial to both parties in the long run. Hopefully, his advisers know this and can steer him in the right direction. If not, he’ll be making America Not So Great Again.
Joe Baker, CFP®
Baker Asset Management, LLC
joebaker@bakerassetmanagement.com
