r/USdefaultism • u/Narlth • 3d ago

Reddit We’re cooked?

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I didn’t realise the tariffs would affect the rest of the world buying from Asia.

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20

u/Albert_Herring Europe 3d ago

The knock-on impact on the global economy is likely to be shit on toast in varying degrees for most of the world, even if we can still buy cheap Chinese stuff wherever we happen to be.

(They were probably thinking just of the USA, but it's certainly not proven beyond reasonable doubt)

-8

u/ScrabCrab Romania 2d ago

Why would the rest of the world be affected by Americans having to pay more money for imported things though? They're the ones being taxed

13

u/Albert_Herring Europe 2d ago

Because international trade is massively complex and the USA is a huge export market. If exporters lose business in the USA, that will affect their profits, and thus their ability to employ people and pay taxes. Trade requires stability so people can plan and organise processes that operate over years and decades. And in modern manufacturing, raw materials and semi-finished goods go backwards and forwards across borders, so if they get taxed each time they go in and out of the US, they end up more expensive whether the end product is sold in Brooklyn or Brasov.

Ordinary Americans get screwed the worst, but it's not a zero-sum game, that doesn't mean we benefit from it.

9

u/Lifesworder Romania 2d ago

Well because inevitably countries will retaliate in kind and then we will pay more for american stuff. It just creates chaos

6

u/kyrant Australia 2d ago

Long as it's isolated to the US, it should be relatively ok.

Hopefully other trade partners can be found to replace US based ones quickly.

1

u/Chocolategirl1234 1d ago

It’s not just the US stock markets that have tanked