Dreaded Tariffs

Are we about to enter another era of tariff wars worldwide? We are if the soon to be imposed tariffs on Canada and Mexico come into effect.

Tariffs are usually a negative and are inflationary. They impact the less well off, as well as those on fixed incomes. The effect of this in the USA will also result in US manufactured goods that rely on imported components, becoming more expensive. Workers will lose their jobs. 

However, on the other side of the equation; with oil and gas being fully exploited and with oil going into every part of our lives, then the lower prices at the pump will temper the inflationary effects of the tariffs. 

It's a wait and see. By comparison, Japan play the game differently as they don't rely on tariffs, but they do use complicated regulations to protect their own industry. An example is with rice. Japan require all rice consumed to be grown in the country, as a matter of strategic importance. However, they do import rice, but it gets further processed into such things as rice crackers. In Japan, you cannot buy foreign rice to be consumed as rice itself.

Below embed is the best I can find so far on the effect of tariffs, apologies for the speaker treating everyone as if they're imbeciles: