The madness of the market, manufacturing, and liberation day everything

Louise Matsakis: Yes, this is a very beautiful quote. I really want to put it on a hat, shirt or ingredient. Just an incredible picture at all that Minister Lootnick is drawing there. There are two main camps in the Trump administration here, and I think this is part of the reason for seeing this confusion because these two camps are walking together. Both go on TV. So in one camp is the art of the crowd. Let’s call them that. The art of the deal says that Trump is the final negotiation. This is an incredibly provocative scale. These definitions are a starting point, and the goal is not to maintain high tariffs, but to create a new global economy where the United States is not disabled by this unfair trade deficit, and we are based on a kind of new world where the United States treats more fairly, and we throw our strength around it, and you will see things change quickly. I would like to say that this is the camp that was a tweet Walter Bloomberg spoke. The other camp, perhaps let us call them armies from iPhone workers, believes that the actual goal here is not to remove definitions or only to use as a negotiating tactic. Certainly, we can definitely get some privileges from other countries along the way. The definitions may be modified over time. But on a large scale, the definitions will remain in place because the point it enjoys is to have the Renaissance in the United States, and they may not have people gathering on iPhone devices, but that all kinds of industries return to the United States. They were very mysterious about exactly like the industries they wanted to set their priorities here. But the idea here is frankly, I think it is a kind of growth in some of the masculine Twitter, and the intellectual response between some residents of the United States who in particular feel men who only get a high school diploma, they have obtained a short change in globalization. So the idea is to return to this era where the man went to work and had a manly job, put small screws in iPhone and providing his family to do something like that, instead of obtaining an unitual email. This is the other camp.

Zoë Schiffer: Yes. Well. Well, I definitely want to enter everything, and I think we will look at this in the next part. But we will take a quick break. We will return with Louise Matsakis. Welcome to Wadi Gharib. So let’s talk about some effects, both customs tariffs and madness in the market that followed. From your report, how are small and manufacturing companies hit?

Louise Matsakis: So these definitions are a disaster for every type of small business that you can imagine. Therefore, the local cafe imports beans from Indonesia and Colombia. A clothing manufacturer, a boutique at the bottom of the street, imports clothes from China, from Vietnam, from Cambodia, and perhaps Bangladesh and such places. I really think, it is not necessarily a tariff rate. Obviously, trying to know how your small business that may already work on very thin margins will accommodate 30 % of the costs, it is clear that it is a big problem, but the real problem is uncertainty. So these definitions were announced suddenly. While Trump was talking about them, no one knew their height. I have seen some reports from the Washington Post that have already indicated that they are still trading how high customs duties and how they would be calculated hours before Trump’s announcement. They moved soon from the advertisement. I think they have finished doing this after the markets were closed, because they knew that there would be this big accident. So what this means, for example, let’s say that you are making shoes. You are a US -based shoe designer, but you are producing your shoes in China. These types of companies work months, sometimes a year, and a full year, 12 months ago. Thus they already set their prices, they have already spoken to buyers, retailers who will carry their shoes, and they have already agreed to the price for the next season. Like now, a shoe manufacturer like falling shoes produces soon, but may have already entered its winter shoes in production, or at least they are negotiating with manufacturers at the present time. And their summer shoes, they were priced five months ago. In some cases, these summer shoes are already on a ship. So you have already paid your manufacturers to them, and that ship comes, and suddenly like that ship is coming from China, you will have to pay a 34 % tariff you do not expect. So I think it makes it really difficult for any work to plan now.