Tag: Economy

Understanding U.S. Tariffs: Costs and Consequences

In 2025, U.S. tariffs are taxes levied by the federal government on imported goods at the border. While intended to protect domestic industries and reduce trade deficits, these duties directly impact American citizens through higher prices and broader economic shifts.

What are the 2025 U.S. Tariffs?

As of late 2025, the U.S. has implemented an aggressive trade regime characterized by widespread “reciprocal” and sectoral tariffs: 

  • Baseline Tariff: A minimum 10% baseline tariff applies to imports from nearly all trading partners.
  • Sectoral Tariffs: High specific duties apply to key industries, including:
    • Automobiles and Parts: 25% on most foreign-made cars and light trucks.
    • Metals: 50% on steel and aluminum (up from 25% earlier in the year).
    • Pharmaceuticals: 100% on branded or patented drugs, unless the company builds manufacturing plants in the U.S..
    • Lumber and Furniture: 10% on timber and up to 50% on kitchen cabinets and some furniture.
    • De Minimis Change: On August 29, 2025, the $800 exemption for low-value imports was removed, making small packages from retailers like Shein or Temu subject to duties.

How They Affect American Citizens

The primary impact on citizens is financial, as tariffs act as a “consumption tax” passed from businesses to individuals. 

1. Increased Costs of Living

  • Direct Price Hikes: Importers often pass the cost of the tariff directly to consumers. In 2025, households face an average estimated loss of $1,100 to $2,700 annually.
  • Specific Good Impacts: By late 2025, shoppers have seen significant price jumps in staples:
    • Groceries: Up 2.7%, with beef and coffee surging by 14% and 19%, respectively.
    • Cars: New car prices have risen by an average of $4,000 to $6,500 due to auto and metal tariffs.
    • Apparel: Clothing and leather goods prices have increased by up to 28%.

2. Regressive Tax Burden

Tariffs disproportionately affect lower-income families because they spend a larger share of their income on essential goods that are now more expensive. The poorest 20% of households face a tax increase equivalent to roughly 6% of their income, compared to only 1.7% for the top 1% of earners.

3. Labor Market and Job Security

  • Sector Gains vs. Losses: While tariffs aim to boost manufacturing jobs, research indicates that job losses in “downstream” industries (which use imported materials) often outweigh gains in protected industries.
  • Unemployment: Projections suggest the current tariff policy could lead to an increase in the unemployment rate by 0.6 percentage points by the end of 2026. 

4. Retaliation Impacts

Trading partners like China and Canada have imposed their own “tit-for-tat” tariffs on U.S. exports. This hurts American farmers and manufacturers who sell products abroad, further straining local economies. 

5. Reduced Consumer Choice 

Higher costs and trade uncertainty often lead retailers to carry fewer imported brands, resulting in fewer options and lower product variety for American shoppers. 

In essence, tariffs act as a regressive tax, raising the cost of living and operating for Americans while often failing to deliver promised economic benefits, shifting costs from foreign producers to domestic consumers and businesses. 

Taxman (Remastered 2009)

Taking stock of my share of shares

Holly sh*t what the feck just happened in my bank account it is leaking cash faster than a Trumpian Bull breaks ceramics in a China shop!

Along time ago in a bank account far, far away I started to dabble in buying a type of UK bank account called an ISA (Individual Savings Account). ISAs are seen as a tax-efficient way to save and invest your money. That means you’ll pay no tax on any interest, gains or returns you make. What a great idea I thought. I also thought I could turn a little pot of money into a little bit bigger pot of money with me chipping some in monthly and also with the interest earned on the ISA. The only problem was that at the time I had decided to do this some 15 years or more ago interest rates were so low that in relation to inflation the interest earned was not keeping up with the low inflation rate so it felt like for every year you kept money in a regular ISA it was still in fact degrading over time in real terms.

So like everyone I was looking for a way out of this slightly silly system and so about 5 years ago or longer (I forget how long ago I decided to invest in a type of stocks and shares account with a online stocks and shares company. Again kept my little ISA ticking over to not earn interest on but also started saving into a type of stocks and shares account, again it was small potatoes and did not really have any major success but also did earn a little bit more than when putting money into an ISA so no big wins but no losses either still quite dull I thought really.

But then after a recommendation from a family member I consolidated my many minor pension schemes and cash ISA all into one company in the UK that had a steady higher rate of return for my money than any think I had tried in the past and low and behold I soon started to take interest in the interest and start finally seeing the benefits of my savings whilst at the same time as the stocks market would be stable and go up so would my stocks and shares ISA.

It was all going so well, I would pay a small amount in every week into my account and each week the money as well as the interest would grow. I thought I had finally become an adult without responsibilities that could and was planning for my rainy days and saving for my future. But then comes along President Trump like a bull in a China shop, who after many years of nonsensical speeches and stupid opinions was finally able to put those two things into practice with no less than  a trade war with the rest of the world – a literal economic DO NOT DO under no circumstances economic policy. Oh my the bigger they are the harder they fall kind of economic suicide that he has chosen to inflict on the globe and the US – its quite literally the top number one dumbest thing he could think to do and not only did he think about it he went ahead and did it and now will not back down and spend the next four years saying how it will be other countries and politicians and policies fault for the very dump policy that he implemented all on his own. You wonder how a person can even bankrupt a casino in their lifetime and we now know and start to see just how his logic did that and start to say ahh thats how, that’s why.

Finance and the direction of flow of money, shall always have a flow, an economic flow, it is not personal, it is not prejudicial, it simply flows from what it is able to make from money to who it then  able to buy with money, simple economic rule really on a micro and macro scale.

The barriers Trump is attempting to put up might well speed up or damage even more severely the things that Trump was in fact trying to protect and solve. China has a wall of businesses, bureaucrats, financial clout and desire to beat the US and where as Trump is dismantling the US government machine, China is only getting started with facing its machine up against the US in the trade war of all trade wars that Trump is initiating. Trump put quite simply this is a trade war you cannot and could never win. Just as Brexit saw a painful divorce for Britain from Europe, in a most likely irreversible circumstance so to is Trump trying to divorce himself right now from the economic flows of international finance and trade and oh boy have his shenanigans kicked my savings down right into my stocks and shares! No one can predict where this will end for global stocks or shares or for the US, China or rest of the world just yet. But my money is on the fact that this will not bode well for Trumps Tariffs’ philosophy at all.

Pink Floyd – Money

 We need to talk about wealth and tax the rich

It really is a taboo to talk about taxing the wealthy or super rich, let alone electing political officials that introduce such measures. Most people with millions and billions of pounds can not only afford to hire great minds and accountants to ensure they pay the bare minimum in taxes, they can also afford to fund political interests in both the left and right side of the mainstream political establishment to stand up and enforce a no tax policy for the super wealthy to such an extent that it is never mainstream enough political idea or policy that might be adopted by governments across the global mainstream of wealthy or developed economies and countries where such policies could truly save and enhance lives.  

In the US wealth is good and talking about taxing wealth in some way makes you a communist ,which is just nonsense, but again the propaganda painted like dirty mud on a wall it sticks backed up by both mainstream republican and democrat parties.  

In the UK the super wealthy people here are often landowners and royalty, asset owners and stripers but not really in the game of working or being out of work but like many with wealth very quick to judge those out of work or in low paid jobs. It is so taboo in the UK to say or even argue that the monarchy should pay its fair share of tax or live within the countries means and have money spent on it that the country can afford or even just pay for its own affairs AND be taxed too – such views are heresy and taboo.  No knighthoods for the PM that advocates the downsizing of a royal budget. Its in the interest of the wealthy of the UK to see the defence of the monarchy and the money that is spent on maintaining it and not taxing it as sacrosanct because it also keeps in line the rest of the population with the illusion that no super wealthy people should be taxed of their wealth especially the royals and their chums.

Since Covid-19 the amount of money that has gone to the super rich and already wealthy has sky rocketed and they will do all they can to keep hold of said wealth even though they will do vary little with it accept have a few more digits on a bank account or two.

When money is given an opportunity to be earned or provided to those that are deemed working class, underclass or even middle class the vast majority of that finance will be ploughed back into the consumption economy which will be good for jobs and consumer spending and retailers. But when money just becomes digits in a bank account sitting generating interest for the super rich, it has no capacity to oil the wheels of an economy like it can seeing real finance in the hands of those that are able to directly spend said finance into a consumption economy.

The UK labour government are bending over backwards at present to please people that have no interest in being pleased by them. You have Trump taxing the globe for trade arguments and divisiveness generating dollars for a US government that is presently stopping many good products and services it delivers to its own citizens as well as those around the world as a huge experiment in how to screw things up that will likely go badly wrong. You have Labour in the UK rolling out Austerity 2.0 for those on benefits in the UK there is no plan 1.0 let alone 2.0 on how to modernise the monarchy or increase wealth generation from the rich in the UK, you can in no way provide for a society by piddling around at the edges of an already failing wealth maintaining system as is the UK. Those across the globe that increase their own wealth and fortune at the expense of the spending power of others often seem more like black holes absorbing and destroying other areas of the economy and sucking out the life of all in their way without replacing the taken away wealth with a a positive generated benefit at all.

This is not just a collection of theories but an unsustainable model of consumption and wealth generation. Just as economic drivers and wealth holders do not care for the wildlife and environment that sustains us all, that their wealth generation has destroyed, shock horror they also do not care about the people damaged and destroyed in the process of this pattern of wealth creation either. Hence tax the wealth before it destroys us all and there is then nothing left to be destroyed or taxed at all.   

If governments are not their to save lives and enhance the way we live then what are we voting for at all, we don’t vote for slightly better terms or existence. We vote to be given an opportunity to be alive and thrive not just to survive or slowly be chipped away at or suddenly stolen from us until we die.

Running To Stand Still – Elbow

Blocking the rivers of trade

Stopping the flow of money & watching some rivers of finance run dry, all for an experiment that will fail and a crash and burn to the US economy.

If we were still in George Orwell’s 1984 novel then the great trade war has begun and if it was up to Trump no matter what damage he does he will be reporting this war as a victory. No matter how many jobs are lost he will be reported as improvements and gains and no matter how much money people loose they will be reported as having increased and gained.

The normal rivers of Economic trade being blocked and dammed by Trumpian probable failing economic policies will cut deep. Damaging both economic systems across the globe and Trumps ego and people’s perception of him as an intelligent and knowledgeable business man. Trump likes to see himself as a brilliant business man and an assumption of this brilliance should be a keen understanding of international economics and trade is unravelling before his eyes and stock markets around the world and recessions are on the horizon while his attempt to block flows of trade fails for the USA and rest of the world. Trade and flows of trade will likely find a way even if this is further away from the USA rather than directly to it. Yes, Trump it will be a painful transition for many but what no one can really predict with and clear insight is what the change will look like and what that change ultimately leads too. Will it result in more or less jobs and money in the USA in the long run is yet to be seen.

Economic policies and trade from country to country can be viewed as flowing of goods and services to and from places across the globe. These flows are natural and part of economic cycles. Where there is financial clout to purchase goods and services and where there is an ability to produce and design, market and provide excellent goods and services and then transport them across the globe then these flows of products and services are natural economic eco systems that take place. It’s a consumers market and Trumps policies go completely against the free flow of consumption and he fails to allow the flow of trade and consumption and in my opinion Trumps policies will ultimately fail just like many of his other policies.

But the fact that he sees himself as such a great business man means that this failure will likely hurt him the most as well as his own country the place he is in fact trying to make great again. With the shocks to share and trading markets and likely continued break down in flows of trade and consumption this will be a damming of the river of financial, goods and services trade. Jobs will be lost, goods will go up in price and business will go out of business.   

Trump says that the USA has been treated unfairly, what he is really stating is he does not agree with the economic flows of finance and he is conducting a global experiment that will likely fail for him and cause more damage to USA and global business than good for goods and services. Trump cannot buy rivers of flow and Trump can not force the USA consumer or businesses to by USA goods and services. Freedom of consumption is natural to human markets and trade he’s peddling ideas and views that will fail and meddling in economic markets and trade flows he simply just does not understand. Like a bull in a china shop its likley there will be a crash or two of the economy.

World Economic War 1

So rather than World War 3 has Donald Trump started an economic war and how has he done this and why? Well in simple terms he does not like the fact that US tends to buy more goods and services from other countries than other countries buy from the US. Secondly because he is a moron willing to do as yet incalculable damage to the global economy in the name of the USA and Trumpism Economics (whatever they might be) by raising tariffs against other countries across the globe that are looking to sell their goods and services to the US. A tarrif is a tax added to imported goods. Trump has done this for a variety of reasons such as A) he does not like a country that boarders his attitude to emigration and so wacked a tariff on, or B) because a countries goods and service are simply better or more competitive on the global market so he hits a tax on those too. Or finally C) where there are taxes already charged to US goods in the way of such as in the UK where nearly all goods and services including its own are charged VAT (value added tax) as an income stream for the UK. So Trump is adding this 20% tax to all goods imported from the UK too.   

Trumps Tariffs might make the US a considerable amount of taxable income in the short term but it will increase inflation and prices to US citizens as well as other citizens across the globe and as yet in world history I am not sure if anyone has won a trade war it just tends to unnecessarily hurt those countries and citizens of those countries that get caught up in it.  

Ultimately Trump is detonating an economic bomb simply because he can.

It’s the economy stupid!

The state of a countries economy is one of the main headline topics in the news these days and it is judged by whether the economy is doing well by growth and stability and its very much a numbers game.  Economic growth refers to an increase in the size of a country’s economy over a period of time. The size of an economy is typically measured by the total production of goods and services in the economy, which is called gross domestic product (GDP). Economic stability definition is a term used to describe the financial system of a nation that displays only minor fluctuations in output growth and exhibits a consistently low inflation rate.

GDP in a country is usually calculated by the national statistical agency, which compiles the information from a large number of sources. In making the calculations, however, most countries follow established international standards. These types of financial measurement are seen and believed to be accurate.

Bigger question to ask might be what’s the point in these stats? How does a growing or stable economy effect our lives? Well in basic terms a growing and stable economy increases an individual living within that economy of having a job and prosperous opportunities to live and have a future.

So what are the strengths & weaknesses to this model and to an economy within this model. Strengths are the measurement are generally accurate and can be updated and corrected if and when needed, when the sums add up a country can be confident that it is doing something right.

Weaknesses of this model relies on growth of an economy as a sign of health and productive economy although a sustainable and environmentally non-destructive economy that provides value to its citizens and environment whilst not necessarily increasing profitability on a spreadsheet can still add tremendous value to its citizens and also enhance the environment of the country and people within that society but this is more difficult to measure on a spreadsheet but invaluable over time. A damaged and dying ecosystem can still be tremendously profitable up to a typing point where then the damage might be so catastrophic that the land or sea has no value or profit to it at all.

Adoption of circular economy principles can help in reducing the negative impact on natural resources as well as damage to our climate.

What makes a government not work in the interest of the people?

You must first define who does a government consider to be the people or more precisely ‘it’s people’. It’s citizens that live within it’s boarders? it’s voters that elected it into power? It’s own politicians that vote through its laws and or its own financial backers that fund campaigns and promote voting habits or those that profit from the decisions that it makes and advocate the policies it enacts? Sadly in the UK for many years now there has been an overwhelming consensus of opinion from those in power or promoted by those who influence and determine the policies of those in power to simply make choices that are cost saving to them, whilst at the expense of the people and results in profiteering at the expense of people, whilst decreasing quality of the goods and assets and services for people of the UK, whilst continuing to charge more for those ever decreasing quality of goods, services and assets.

A considerable proportion of people in the UK can no longer look forward to getting educated, to have a job, to buy a home and a roof over our head and then one day retire. There are no longer the quantity or quality of homes, and we no longer have the backup of a strong government to support us in providing decent water, homes, roads or medical services to us. What we receive now in all aspects of goods and services is of a poorer quality that it was prior to when the conservatives came to power in the UK and yes this is a political and policy lead problem very much caused as a result of the government decision making processes no longer working in the interest of the people but for the profiteering of the few.

This country and its people is experiencing the perfect storm of greed and incompetence, where it is perceived to not only be necessary and good in corporate and capitalist orthodoxy and that there is no alternative to exploitive capitalist ventures being only way of doing things.

This is a political view and economic choice done in order to grease the wheels of the economy and the system so as to get what can be done, done. To say this is the only way is a lie and a profitable one at that, which politicians that profit from this system tell themselves, tell us and tell those that do their bidding or profit themselves from what is being done.

A simple example of how exploiting others works well in the UK for people in power at the expense of the people and is designed to succeed over delivering a good service to the many and profit to the few. I moved into my housing association over 15 years ago and in that time it and many other housing associations have been bought up and by bigger more profitable housing associations.

What makes them bigger and more profitable is to do less work to their tenants housing stock, the less you do the more money you have to spend and can be seen to be a more profitable housing association. The more money you have means you can buy up smaller housing associations. Therefore do less and buy more puts your competitors out of business and makes you too big to be bought yourself. The quality of service to the housing tenants decreases as the profits to the associations increases. My first housing association had a community housing officer that helped me get a job assisted with me getting shoes and clothing to attend an interview which I got and was a win, win for all concerned.   

A second example of a failing normal everyday inadequate, under delivering incompetent public good is that of the UK water utilities and their failure to clean up water pollution and profiteering at the expense of the people. Water utilities have been providing money to share holders whilst failing to cleanup our waterways or future proofing water sector. It’s more profitable and economical to pay money out to share holders and pay out fines for pollution that it is to spend the money on cleaning up on said waterways in the first place and then being able to sell shares in a clean and working water industry. Government bodies designed to monitor and fine waterways are too weak in order to force water companies to change to do what they should have been doing all along which is providing clean water to customers and through clean waterways. The failing current model of delivery and service is a politically sanctioned choice that fails the people but works for water companies and government bodies and decision makers and profiteers.

Purely focusing on profit at the top as a business model only, fails society and fails to join the dots of the whole economy or social structure that it operates within. For example legislating to have housing association that can enable its tenants to take the next step after having a roof put over their heads to make steps towards going into employment so as to be able to fund that roof over their heads themselves is priceless and as a service to tenants should not be priced out of the housing model.  With regard to our waterways having clean and usable rivers and beaches is so health for the people and wildlife that use those waterways (and sadly as this is not reflected on the profit sheets of a water utility they see no gain to themselves to provide this service effectively) But the costs of not cleaning up the environment for our wildlife and for people that cannot use their polluted areas are not on anyone’s costs and balances spreadsheets.  

I always want to express the view that it pays to be kind, it is cost effective to care and that it is short sighted not to care and ultimately we all pay the price when no one cares both politically and personally.

If the UK is designed to be run down or at breaking point in the eyes of its own citizens or getting worse by the day then it is easier for politicians here to pedal their lies that we should not help those from abroad if we live in such a crap country that cannot help itself. If we were well governed we would no longer have our own countries government acting incompetently as an excuse to not help others.

Frank Turner – Be More Kind

 

The Matrix has you!

When they learn how to plug you into a digital world, you might not ever know how to unplug and come back to the real world or even the reason why you should. They will probably start plugging in the old, disabled and poor into a new matrix of control as an act of kindness, in order to save us from ourselves.

The Matrix Has you

My mum has finally sold her home in Cornwall and due to move to Devon next Wednesday; we are all really looking forward to it. Though moving during an energy crisis is not the easiest time to move if you’re trying to save money on your energy bills. Mum has spent hours over the last week on the phone to utility companies, banks and council officers trying to update her home location status with them and there are very few people left in those organisations to take her calls due to the reduction in customer services employees and a push to do everything online.

One of the key roles that I have to do in my job at the council in Exeter is answer the phone and speak to customers and as such my job is also under threat due to long term restructuring aims seeing this role as a money saving cost effective form of progress to get rid of. This so called progress has forced me to bounce in and out of work for the last 26 years of my working life, sometimes choosing to apply for new jobs prior to an organisation or role being shut down or sometimes being made redundant due to restructuring issues and businesses closing down while I am still employed at them.

I can honestly say I am a very good hardworking and dedicated employee in an area of employment that people no longer wish to employ. I know for a fact that the work that I do is hard work and still needs to be done. I solve problems that are presented to my organisations, I am always busy there is always something important that needs to be done. By sacking people like me that need to answer phones and work with customers it does not make those customers problems go away it just means those customers are either ignored now or processed via a different channel.

This job is one of the many work roles in the UK that has been rapidly phased out by many companies there is a money saving exercise to increase profits by not enabling customers to speak to staff in business and government agencies.

First that sacked the face to face staff and I did not speak out, although I too was made redundant.

Then they came for the staff that talked to customers over the phone and again I did not speak out and again I was at risk and at times made redundant or moved on.

Finally the aim will likely be to digitise the workings of staff customer service roles so that there will be none left to hire, and likely none left to speak out too!

I strongly disagree with the digitising and outsourcing to computers of employed roles within any organisations and my main reason for this is that is businesses do not need to hire people and people do not have money from working to afford to pay to put a roof over their head and feed and clothe themselves then the state will not hand them those resources on a plate.

Either so called wealthy societies such as ours learn to adapt to look after and resource their most vulnerable members of society be they pensioners, disabled or the out of work or there will be a considerable amount of damage and ongoing suffering in society to these vulnerable individuals people claim to care but often money and actions or even lack of money and lack of action speaks louder than words.

No mainstream political party in the UK grasps this nettle at present as both Labour and the Conservative parties consistently want to chase the right wing element of the voting public in this country which is why the labour party do not have my vote in the upcoming council elections and it is a labour party that is presently facilitating my next round of redundancy at the council.

I have just written to my local MP Ben Bradshaw asking him if he wholeheartedly endorse the new planned restructuring of employment roles that are going to take place at Exeter council by a labour council and merely blames the Conservative for the cuts that will be endorsed in customer services roles and can he explain to me why I should vote Labour in the next council election and vote in my own potential redundancy at the hand of a Labour lead Exeter Council?

Though I cannot stop the world from spinning even when it appears to be spinning out of control, I can at least look to make sense of the madness and express my disapproval in my own way to my political representatives at the very least.  

Your Coronavirus Pandemic 1 Year on

On 11th March 2020 the world health organisation announced that COVID-19 could be characterized as a pandemic and that a pandemic was not a word to be used lightly.

The early stages of the pandemic and the ensuing lockdowns were hard on many people, in different ways, unemployment, families trying to live, work and study under one roof or individuals having to rely on themselves and draw on their own resilience resources to adapt and absorb the enormity of the situation. There were also many other challenges severely affected the mental well-being of many people around the world and yet here we are, a year on.

It’s a tough subject to write about and one which we are all effected by on daily basis in our own uniquely uncomfortable way. It’s possible to feel both guilt for the good things that have happened as well as joy or remorse for the bad things that have happened and yet relief for the bad things that have not happened too, all in one blink of an eye on a reflection of range emotions and issues.

I do also wonder what would have happened politically, socially and environmentally to our streets, towns, cities, countries and planet had no pandemic occurred and life had continued to race on at its break neck speed into potential oblivion.

It feels like the brakes have been put on a runaway train of consumer capitalism that was our everyday race for life and although consumer capitalism is still very much our way of life and affords us to live, can we now appreciate what we have a little more and aspire to protect and value the sanctity of life in a new found appreciation of what we have and what we hold dear to us. Essential workers can finally feel that well for want of a better word they are essential to the fabric of human life and society.

Who would have thought 12 months ago that to stack a shelf in grocers store was a means to help feed a nation. If I had my way I would give all essential workers and minimum waged workers a huge pay increase not as a thank you but as an acknowledgment to the role they play in a society and economy. This would enable workers to be able to afford to keep an adequate roof over their heads and food in their stomachs. The money that the low paid earn is ploughed straight back into the economy because unlike the wealthy they don’t have the luxury of saving wealth you simply spend to live.

You could tax pollutants such as fossil fuels like they were industries equivalents to humans smoking tobacco or drinking alcohol. You could also create a new digital economy type of VAT where everything bought online had a Digital value deducted tax. It would cause prices to increase but if people are earning more this would still balance out.

Well look at that not been in a pub or had a drink of alcohol for what must be over 3 months and still getting drunk on ideas and trying to put the world to rights. Roll on the open of those bars again so I can go in and start to have a conversation about ideas like this and pretend it is because I am drunk again!   

Massive Attack – Teardrop