Blue Press Journal

Tag: economy

  • Farmer in Upstate New York gets Lesson on Trump Tariffs

    Economists are sounding the alarm, cautioning that tariffs will pose a significant financial burden for homeowners and the real estate industry. This is due to the fact that the U.S. heavily relies on Canada for building materials.

    The impact of these tariffs is not limited to homeowners and the real estate sector; American farmers are also feeling the squeeze. A recent story in the Syracuse sheds light on this issue. According to Syracuse.com reporter Geoff Herbert, a dairy farmer named Gilbert, who owns Adon Farms in Potsdam, New York, found himself facing a hefty bill for livestock feed imported from Ontario, Canada. The recent tariff resulted in Gilbert having to pay an extra $2200 for his feed order.

    Despite President Trump’s claims, tariffs are actually paid by domestic importers, not foreign exporters. Gilbert, like many other farmers, is now grappling with the added costs imposed by these tariffs. The situation is further complicated for Adon Farms as the price of the milk they sell is determined by a local co-op, and there are no nearby U.S. suppliers for their feed.

    Additionally, other significant challenges have been pointed out by Garry Douglas, President of the North Country Chamber of Commerce, indicating that several businesses are facing difficulties as well. A local manufacturing company anticipates an increase of $16 million due to rising raw material costs from Canada, while a paper mill is experiencing distress as the specific type of wood required for production is exclusively sourced from northern regions.

    One must wonder, where is Congresswoman Elise Stefanik? The staunch Trump supporter appears to have neglected her voters during a time of urgent need, failing to take decisive action on tariffs and the devastating consequences they have wrought.

    As if things weren’t tough enough, the prospect of levies on fertilizer or farm equipment looms on the horizon. It seems that MAGA land, where Adon Farms is located, is now facing the real-world consequences of Trump’s policies. How do MAGA voters feel about these developments? It’s a question worth pondering as the impact of tariffs hits close to home.

  • Tariffs are Taxes on American Consumers

    The Constitution clearly states that taxes must originate in Congress. Tariffs, as a form of tax, are straightforward in their nature.

    President Trump’s implementation of “reciprocal” tariffs on over 180 countries is facing legal challenges from various businesses. These challenges have led to lawsuits being filed against the administration in both the U.S. Court of International Trade and a federal district court in Florida.

    Efforts are being made to expedite the case to the Supreme Court, as the implications of Trump’s tariffs on businesses are imminent. While most tariffs have been put on hold for a 90-day period to allow for negotiations, China remains a notable exception with tariffs as high as 145 percent on its products.

    The International Emergency Economic Powers Act (IEEPA) does not provide the authority to impose such tariffs. The trade deficit, which Trump claims as the basis for these tariffs, is not an emergency nor an extraordinary circumstance.

    The question arises whether our country will be governed by emergency decrees or by the democratic processes and decisions of Congress. A recent resolution to repeal Trump’s 25 percent tariff on Canada was supported by four Republican senators, including Paul, Collins, Murkowski, and McConnell. However, the resolution faces challenges in the House.

    Senator Grassley emphasized during a Senate Finance Committee hearing that the Constitution grants Congress the power to regulate both interstate and foreign commerce. It is evident that Trump’s tariffs are not well-received among GOP senators.

  • The 2017 Tax Law: A Failed Promise of Economic Growth

    President Trump and his Administration’s Council of Economic Advisers have been spreading falsehoods about the impact of the 2017 tax law. Despite their claims, there is no evidence to support the idea that the tax cuts, which primarily benefited the wealthy and corporations, actually boosted the economy during Trump’s first term.

    In reality, the original legislation did little to stimulate economic growth before the pandemic hit. Business investment rates actually slowed down after the tax law was enacted, as did consumer spending. Research into the law’s key provisions has also failed to provide any evidence supporting the Trump Administration’s assertions.

    While the Trump Administration promised that the corporate rate cut would lead to a $4,000 increase in household income, the Federal Reserve Board discovered that workers in the bottom 90th percentile of their firm’s income scale saw no change in earnings as a result of the tax cut.

    Proponents of the 2017 tax law made grand promises about its potential to boost the economy, but these promises never materialized. There was no significant impact on GDP growth, investment, or wages. Instead, the tax law ended up reducing federal revenues and widening income and wealth inequality by favoring households in the top 1 percent.

    When combined with cuts to Medicaid and SNAP, as well as sweeping tariffs, the 2017 tax law will ultimately lead to higher costs for low- and moderate-income families, while the wealthy continue to enjoy substantial tax breaks. The reality is clear: the 2017 tax law failed to deliver on its promises of economic growth and prosperity for all.

  • Is Trump Playing with a Full Deck?

    The ongoing saga of Trump’s tariff decisions has left many wondering if he’s playing with a full deck. It’s like he wakes up each morning in a parallel universe and decides to shake things up just for fun. The fact that no one is questioning his mental fitness is mind-boggling.

    The stock market took a nosedive earlier this month when Trump announced his grand tariff plans. While the market did recover slightly after he backtracked on some of them, consumer confidence is still in the dumps. It’s like a rollercoaster ride in the market, and not the fun kind.

    Trump claims he took a cognitive test during his physical exam, but can we really trust those results? Probably not. His reckless tariff decisions could end up costing American families big time. A study from Yale University estimates an average of $4,700 per year per family. Ouch.

    It seems like Trump is just winging it with no real plan in sight. Some folks on Wall Street are starting to wonder if he’s not just unpredictable, but maybe a few fries short of a Happy Meal. The Yale Budget Lab analysis paints an even bleaker picture, predicting higher prices and job losses.

    So here we are, with a guy running the country and the economy that most people didn’t even vote for. God help us all.

  • US Consumer Sentiment Drops off the Cliff

    US consumer sentiment has fallen to its second-lowest point in more than 70 years, signaling a concerning trend that is likely to deteriorate further in the coming months.

    The University of Michigan’s Surveys of Consumers, released on Friday, revealed that U.S. consumer sentiment took a nosedive of 11% at the beginning of April compared to the previous month. This decline was widespread and unanimous across all demographics, including age, income, education, geographic region, and political affiliation.

    The latest report indicates that overall consumer sentiment has now dropped to its second-lowest level since the early 1950s. Lindsay Owens, the executive director of the Groundwork Collaborative, expressed her concerns in a statement, emphasizing that today’s plummeting consumer sentiment numbers may just be the tip of the iceberg.

    Thanks to Trump’s reckless trade policies, markets are in chaos, retirement accounts are in shambles, and shipping orders have come to a screeching halt. Brace yourselves for price spikes, shortages, and the looming threat of a recession in the near future, according to Owens. 

    To add insult to injury, as consumers brace themselves for impending disaster, Congress is recklessly tearing apart the safety net they might desperately need when the economic catastrophe hits. President Trump isn’t just failing to lead; he’s plunging us headfirst into a reckless kamikaze mission, oblivious to the chaos he’s creating.

    If the administration can secure even a few deals in this chaotic time, we should brace ourselves for the heavy weight of drastically increased tariffs, effectively slapping tax hikes on American consumers and businesses. It is utterly baffling why the world is being forced to endure such pointless drama!

  • House GOP’s Costly Budget: Cuts vs. Tax Breaks for the Wealthy

    House Republicans have brazenly pushed through a budget blueprint that paves the way for yet another round of tax cuts benefiting the wealthy elite. This plan, approved by a narrow margin of 216 to 214, includes staggering cuts of $880 billion to Medicaid and at least $230 billion to federal nutrition assistance programs.

    In a shocking display of priorities, Republicans are willing to sacrifice the well-being of vulnerable populations in order to provide tax breaks for billionaires like Elon Musk. By slashing funding for essential programs, they are essentially sentencing children to go hungry and leaving the most vulnerable without access to healthcare.

    Sharon Parrott, president of the Center on Budget and Policy Priorities, has condemned this budget framework as unsustainable. The proposed $1.5 trillion in spending cuts would decimate vital services like Medicaid and food assistance, leaving millions of Americans in dire straits.

    To make matters worse, the renewal of expiring provisions from the 2017 Trump-GOP tax law is estimated to cost a staggering $5.5 trillion over the next decade. Republican lawmakers are also pushing for an additional $1.5 trillion in tax cuts, bringing the total cost of the tax package to a mind-boggling $7 trillion.

    This reckless budget plan will strip away funding for healthcare, nutrition, and other critical human needs, all to line the pockets of CEOs and billionaires. The consequences of these decisions will be devastating, pushing vulnerable communities further into poverty and despair. It is a dark day for America when the well-being of the wealthy is prioritized over the basic needs of its citizens.

  • Trump’s Tariff Flip-Flop: Drive U.S. Stocks Down Again

    Despite President Trump’s surprising reversal on tariffs, U.S. stocks took a nosedive back into the red. The confusion and threats surrounding Trump’s trade war with China are causing major turmoil in the economy.

    Trump’s focus on China, NEW 145% as of today, has led to tariffs on their products skyrocketing. Even if negotiations bring that down to 50%, and other countries only face 10% tariffs, the U.S. economy is still at risk of stunted growth and decreased corporate profits. And of course higher consumer prices for us non-billionaires. 

    Francis Lun, CEO of Geo Securities, summed it up perfectly: “With Donald Trump, it’s like playing a game of roulette. You never know what’s coming next.” The market is drowning in uncertainty, and the looming threat of recession is far from fading.

    The news of China planning to cut back on imported U.S. films hit the entertainment industry hard. Warner Brothers Discovery saw a 13.1% drop in stock prices, while Disney took a 6.7% hit.

    In this chaotic environment, thanks Trump, how are investors supposed to make sound decisions? It’s like trying to navigate a minefield blindfolded. Good luck out there! Your 401 is losing money by the hour!

    What it means to you: Overall Price Level & Distributional Effects: The price level from all 2025 tariffs rises by 2.9% in the short-run, the equivalent of an average per household consumer loss of $4,700 in 2024$. Annual pre-substitution losses for households at the bottom of the income distribution are $2,100.

  • Yes, we are still in the midst of a trade war: Tell it like it is Main Stream Media!

    Yes, we are still in the midst of a trade war. The world is currently facing a 10% tariff on all goods, with Canada experiencing a 25% tariff on major items. Despite what the mainstream media may be saying, it is clear that the White House is dictating the narrative. President Trump’s lack of understanding and unclear end game is evident in his actions.

    The tariff battle between the world’s top two economies has escalated, with President Trump now targeting China directly. Despite fears of a recession, Trump has increased tariffs on China to a staggering 125%. This move has intensified the standoff between the two nations, putting their economies and global interests at risk. The competition between the U.S. and China spans various sectors, from artificial intelligence to monetary policy, heightening the stakes.

    Following Beijing’s response to Trump’s tariffs with equal measures, Trump raised the tariffs even further, only to be met with a similar response from China. The escalating tariffs have now reached 84% on U.S. products going to China. In a bold but stupid move, Trump has announced that Chinese imports to the U.S. will face a 125% tariff, citing China’s lack of respect for global markets.

    The situation leaves little room for negotiation, as both sides refuse to back down. The mainstream media’s portrayal of the situation as less severe is misleading. The EU, Canada, and China are all engaged in a trade war with the U.S., with significant consequences for consumers. It won’t be long before the impact is felt, with prices of goods likely to skyrocket. The reality of this trade war is far from what is being portrayed.

  • Trump Has Lost it!! We will say it if the National Press will not

    With today’s 90-day delay of most tariffs, let’s not forget about the 25% on cars and steel and aluminum, and the whopping 125% on China. One has to wonder, is Trump all there? I mean, there was no plan in place, not even within his own administration, as they were giving different rationales on the Sunday talk shows.

    In a surprising turn of events, Trump took to his favorite social media platform to announce that he is graciously reducing tariffs on all countries to a mere 10% for the next 90 days. This comes after his previous misleading descriptions of tariffs as “reciprocal.” However, China will now face a staggering 125% tariff on their exports to the U.S.   Get ready to pay more at Walmart, Target and the like. 

    Countries that exported more to the United States than they imported from American manufacturers were hit with tariffs higher than the 10% baseline. This disproportionately affected poorer countries, whose citizens cannot afford to purchase American goods. For example, Vietnam faced a “reciprocal” tariff of 46%, while Lesotho, a country Trump claimed to have never heard of, was slapped with a 50% tariff.

    The high tariff rate on Chinese goods may come as a shock to Americans accustomed to purchasing cheap household items made there. A T-shirt that once cost $9.99 at Walmart will now likely be priced at over $20. Let’s not forget the MAGA hats that are made in China, well that will also more than double. 

    Now, Trump claims he will negotiate with 75 countries. Is he really willing to give up his weekly golf games for this? How long will this charade last?  Given the track record of this administration incompetence that’s not a promising game plan. 

    In the end, prices will inevitably rise as China shows no signs of backing down. And if the tariffs are lowered, where is the revenue that Trump promised they would bring in? Oh, the mysteries of Trump’s trade policies.  He has lost it.  

    It appears this is just another scatter brain idea Trump didn’t think out. 

  • Chaos and Confusion: Trump Tariff Policy

    Trump’s lack of understanding and competence is glaringly obvious to everyone, especially economists. At 79 years old, he is clearly showing his age.

    Attempting to bring back manufacturing, increase revenue, and negotiate with every country in the world? Trump can’t have it all his way.

    The administration is trying to sell the public on three conflicting ideas. First, that Trump’s tariffs will revive American manufacturing, bringing back lost jobs and boosting the middle class. Second, that the tariffs will generate massive revenue to replace income tax. And third, that the tariffs will pressure foreign nations into trade deals with the U.S.

    Trump’s tariffs impact nearly every country, even those that supply goods the U.S. cannot produce. We can’t grow bananas or mine diamonds here.

    Trump is failing to support domestic industries or protect American workers. He is dismantling subsidies meant to boost clean energy manufacturing and calling for the repeal of important acts. His actions are undermining workers and unions.

    The end result is chaos and confusion.

    Trump has long championed tariffs and protectionist policies, dating back to the late 1980s. This is one of the few policies he is truly committed to. It’s possible these tariffs stem from personal whims rather than a coherent policy plan. Personal impulses rarely lead to coherent decisions.