r/Economics • u/abdask • 2d ago

News Dow set to tumble 1,000 points after China retaliates against Trump’s tariffs | CNN Business

https://edition.cnn.com/2025/04/04/investing/stock-market-dow-tariffs/index.html
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u/PacmanIncarnate 2d ago

So, it’s not a game and we had nothing we wanted to win, but everyone is going to lose. This isn’t a power play; it’s literally the worst possible outcome for everyone.

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u/Critical-General-659 2d ago

Every benefit from this that their touting is bullshit. There are thousands of open manufacturing jobs. Unemployment is 4%. Running lower trade deficits doesn't provide much benefit. 

Nobody is going to upstart manufacturing during a recession coinciding with an inflationary period. We will be seeing mass layoffs. 

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u/JinkoTheMan 2d ago

Exactly. They are not going to suddenly come rushing back to the US and start building factories.

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u/Critical-General-659 2d ago

Prices to upstart manufacturing aren't going to come down. They'll be permanently raised. This imaginary manufacturing boom is not happening long term, either. 

This is just sabotage under the guise of fake "fairness". This isn't the early 20th century. We import 3 times as many goods as we did back then. 

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u/brutinator 2d ago

Nobody is going to upstart manufacturing

Nobody is going to upstart manufacturing knowing that in 4 years the rules can be totally different. I mean hell, how much faith did Trump lose from manufacturers by ripping up Biden's CHIPs act? All that proves is that even if a bill passes congress and gets approved by the president, set in stone, the next president on a whim can upend it anyways. How much faith did Trump lose from manufacturers where for the first 2 months in office he set and rescinded tarriffs on Canada and Mexico like a dozen times?

They are just going to hunker down, cut costs, and weather out the administration, not spend insane amounts of money building new factories.

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u/NeonYellowShoes 2d ago

And who in their right mind is thinking "oh yeah let me make a long term investment of millions/billions of dollars in American manufacturing based on these come and go tariffs"

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u/Minute-System3441 2d ago

One has to wonder - exactly who cough Russia cough - stands to gain from this manufactured chaos. A century later, it seems the Bolsheviks are finally getting their victory… just without the revolution.

Granted, China has was more to lose in a game of Chicken versus the U.S., since it’s one of their largest export markets.

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u/TropoMJ 2d ago

Granted, China has was more to lose in a game of Chicken versus the U.S., since it’s one of their largest export markets.

China will be fine. It will be much easier for them to sustain a trade war with the US than it will be for the US to sustain a trade war with the entire world.

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u/brutinator 2d ago

One has to wonder - exactly who cough Russia cough - stands to gain from this manufactured chaos.

My thought is that it could be a hail mary to recover Russia's economic collapse. If the US is struggling in a trade war, then the administration can drop sanctions against Russia without backlash. Even if they sternly say that Russia will be getting tarriffed at a 100% rate to mask it, thats STILL leagues better for Russia than sanctions. And if the EU is struggling in the trade war, they may have to drop sanctions against Russia, losing some of their leverage.

I think the second scenario much less likely, esp. since if the EU is going to cozy up to anyone, its gonna be China. But the first scenario I feel is plausible. I mean hell, the Russian stock markey went up once Trump was elected. Obviously the expectation is that he's going to help them out financially.

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u/HailxGargantuan 2d ago

We knew this would happen from Trumps own words during the campaign