April 21, 2025 • 22 mins
The economic chess match between the United States and China has escalated beyond diplomatic chambers and presidential tweets, landing squarely in your shopping cart. Tariffs have soared to astonishing levels—145% on some US imports from China and 125% on Chinese goods entering American markets—transforming an abstract policy dispute into tangible price increases affecting everyday purchases.
We pull back the curtain on this complex trade relationship to reveal exactly how these decisions impact your financial life. A tariff, stripped to its essence, is simply a tax on imported goods that gets passed directly to consumers. When that $100 imported item suddenly costs $130 (or much more), your purchasing power diminishes accordingly. This affects everything from electronics and furniture to clothing and increasingly, even food products.
Beyond consumer prices, this economic confrontation creates ripple effects throughout the economy. Small businesses relying on international sourcing face brutal choices between raising prices, cutting profits, or frantically seeking alternative suppliers. Larger companies respond by slowing hiring, accelerating automation, or making massive supply chain shifts—moving production from China to countries like Vietnam, Mexico, and India. These decisions affect job markets and create economic uncertainty.
The conflict represents more than dollars and cents—it's a fundamental contest for global leadership in critical industries like electric vehicles, renewable energy, and advanced technology. China's dominance in rare earth materials processing gives them significant leverage, while US policy aims to rebuild domestic manufacturing capacity. Meanwhile, these trade tensions create inflation risks that could trigger Federal Reserve interest rate increases, affecting everything from credit cards to mortgages.
Armed with practical strategies from this episode, you'll be better equipped to navigate this economic uncertainty. Track your spending closely, build emergency savings, consider diversifying income sources, and stay vigilant about product quality as companies may cut corners to maintain price points. Above all, remain informed and adaptable as this global economic realignment continues evolving.
Want to better understand how global economic shifts affect your financial future? Subscribe to our podcast for clear, actionable insights that cut through the confusion and help you make smarter money decisions.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Imagine walking into a store and suddenly the price
tags have jumped like 30, 50,maybe even 100 percent higher on
some things.
Speaker 2 (00:09):
Yeah.
Speaker 1 (00:09):
Feels pretty strange, right, but that's actually the
real impact of this hugeeconomic game going on right now
the US-China trade war.
Speaker 2 (00:18):
Exactly, and we're talking serious numbers here.
Tariffs these taxes arereaching levels like what?
145 percent on some US importsfrom China.
Speaker 1 (00:27):
And 125 percent the other way around on certain
Chinese goods coming into the US.
It's like a punch to the wallet.
Speaker 2 (00:33):
It really is, and it's easy to sort of tune out.
When you hear trade war tariffs, it sounds distant.
Speaker 1 (00:40):
Right.
Speaker 2 (00:40):
But the key thing, the really crucial thing, is
understanding this isn't justboardroom stuff.
A tariff is just a tax onimported goods.
Speaker 1 (00:47):
Simple as that.
Speaker 2 (00:48):
Simple as that, and what's fascinating, and maybe a
bit worrying, is how directlythat tax hits the price you pay
for well, almost everything yourphone, your furniture, you name
it.
Speaker 1 (00:58):
Okay, so that's exactly what we're doing in this
deep dive.
Our mission is clear we'regoing to take apart this ongoing
US-China trade war and explainexactly what it means for you
listening right now, in 2025.
We want to cut through thepolitics, the corporate speak.
Speaker 2 (01:13):
Yeah, get to the real world stuff.
Speaker 1 (01:15):
Exactly?
How does it affect yourshopping budget, your job, maybe
even your investments?
Speaker 2 (01:21):
And it's definitely confusing out there.
You see headlines, you knowinflation seems to be cooling
off a bit, which sounds likegood news.
Speaker 1 (01:28):
A little bit of relief, yeah.
Speaker 2 (01:29):
But then these very trade moves we're talking about,
they carry this very real riskof pushing inflation right back
up again.
Speaker 1 (01:37):
So how do we square that?
That's the big question we wantto tackle how do you make sense
of these mixed signals andfigure out where things are
actually heading Right?
And to do that we've pulledtogether a lot of different
sources.
Speaker 2 (01:50):
Yeah, we've looked at news reports detailed economic
analyses, and even there wasthat interesting mathematical
breakdown kind of looking at howsome of these tariffs were
first calculated.
Speaker 1 (01:57):
Our goal really is just to give you a clear, solid
understanding based on all thisresearch.
Speaker 2 (02:01):
OK, let's dive in then.
First things first.
What exactly is a tariff, andhow does it hit our wallet
straight away?
Speaker 1 (02:08):
Okay.
So, like we said, at its heart,a tariff is just a tax.
It's imposed on goods whenthey're brought into a country
from somewhere else, got it?
The immediate, most obviousimpact the price of those
imported goods goes up for theperson buying them, the consumer
Right.
So goes up for the personbuying them, the consumer Right.
So think about it like this Anitem costs $100 to import.
Suddenly there's a 30% tariffslapped on it.
(02:30):
Okay, now the import cost is$130.
And by the time that item getsto the store, that $30 increase,
maybe even a bit more to coverhassle, often gets passed
straight on to you.
Speaker 2 (02:42):
And with tariffs hitting those really high
numbers we mentioned Edison 30%,sometimes way over 100%.
Speaker 1 (02:46):
Yeah, that $100 item could easily end up costing you
$130, $160, maybe even $245 ormore in some extreme cases.
The price jump can be reallysubstantial.
Speaker 2 (02:57):
And we're not just talking about, like fancy luxury
goods.
Here are we.
This affects everyday stuff.
Oh, absolutely.
It's hitting things we all useconstantly.
You know the tech gear phones,laptops, the clothes we wear,
appliances for the kitchen.
Even food, even a growingamount of food products.
Yeah, tariffs are sort ofquietly adding costs across the
(03:18):
board.
So bottom line, your purchasingpower goes down, your money
just doesn't stretch as far.
Speaker 1 (03:24):
OK, and what about say small businesses or people
doing side hustles, maybeselling things online?
A lot of them rely on gettinggoods from overseas, right?
Speaker 2 (03:33):
Precisely, and that's a huge ripple effect.
These entrepreneurs, thesesmall operations, often depend
on sourcing internationally orusing suppliers abroad.
Right these tariffs, they actlike a sudden major cost
increase.
It squeezes their profitmargins, which are often pretty
tight to begin with.
Speaker 1 (03:50):
So what do they do?
Speaker 2 (03:51):
Well, they face tough choices.
Do they raise their prices?
That might drive customers away?
Do they just eat the costthemselves that hits their own
income?
Speaker 1 (03:58):
Or try and find someone else to buy from.
Speaker 2 (04:00):
Exactly Scramble to find alternative suppliers, but
that takes time, effort andmaybe the quality isn't the same
or the supply isn't as reliable.
It really puts a damper onsmall business growth and, you
know, innovation.
Speaker 1 (04:12):
And this leads to bigger picture stuff too.
Right, because these costsdon't just stop with the small
guys or the consumers.
Big companies feel this too.
Speaker 2 (04:19):
Absolutely.
When large companies facesignificantly higher costs for
components they import or evenfinished goods, they have to
make some big strategic calls.
Speaker 1 (04:28):
Like what Less hiring ?
Speaker 2 (04:30):
That's one possibility.
Yeah, A slowdown in hiring tomanage costs or, in tougher
situations, maybe even layoffsas they try to cut labor
expenses.
Speaker 1 (04:39):
Automation too, I guess, if labor costs or
imported parts costs go up.
Speaker 2 (04:43):
Automation definitely becomes more attractive.
It's a way to potentiallybypass some costs.
And then there's the really bigone long term shifting
production.
Moving factories, movingfactories, deciding to shift
manufacturing out of countrieshit by high tariffs like China
and moving to places like, say,vietnam or Mexico or India.
Speaker 1 (05:03):
That creates huge shifts right Reshuffles the
whole global supply chain.
Speaker 2 (05:07):
It does, and that can lead to job instability, both
in the country losing theproduction and potentially even
in the country gaining it asthings readjust.
It's a massive undertaking.
Speaker 1 (05:16):
So, zooming out even further, it feels like this is
way bigger than just economics,doesn't it?
It's more like a well, a globalchess match.
Speaker 2 (05:28):
That's a perfect way to put it.
It's absolutely more than justdollars and cents.
Speaker 1 (05:30):
It's a fundamental geopolitical contest Between the
US and China.
Speaker 2 (05:32):
Primarily, yes.
A contest for leadership incritical industries, technology,
energy and for overall globalinfluence.
The tariffs are just one of themain weapons being used in this
broader fight.
Speaker 1 (05:45):
Okay, so let's look at the specifics.
The US tariffs on Chinese goods.
What are they targeting mainly?
Speaker 2 (05:50):
The US has been pretty strategic, targeting
sectors like electric vehicles,ev batteries, solar panels
things seen as key to the futureeconomy.
Speaker 1 (05:58):
And materials too.
Speaker 2 (05:59):
And certain steel and aluminum products.
Yeah, the clear goal is to tryand boost US domestic industries
in these areas and cut down thereliance on China.
Speaker 1 (06:08):
And China's response.
They hit back with tariffs too.
Speaker 2 (06:12):
Oh yeah, definitely Retaliation was expected, and it
came.
China imposed its own tariffson a range of US goods.
Things like agriculturalproducts soybeans, for example
were big targets.
What else Certain chemicals,specific tech components too.
It's a tit-for-tat escalationreally designed to put pressure
back on the US economy, hittingbusinesses and consumers there
(06:34):
as well.
Speaker 1 (06:34):
But China has another card to play, doesn't it
Something pretty unique the rareearth materials.
Speaker 2 (06:40):
Ah, yes, that's a huge factor Rare earths for
anyone listening who isn'tfamiliar, these aren't actually
that rare, but they're difficultto mine and process cleanly.
Speaker 1 (06:48):
And crucial for modern tech.
Speaker 2 (06:50):
Absolutely essential.
They're in our smartphonescreens, ev batteries, wind
turbines, even sophisticatedmilitary technology, and China.
They dominate the globalprocessing of these materials,
so they control the supply To avery large extent, yes, and that
gives them immense leverage.
By threatening to restrictexports, or actually doing it,
they can put serious pressure onUS industries that absolutely
(07:13):
depend on these materials.
Speaker 1 (07:14):
That sounds like a major vulnerability for the US
it is.
Speaker 2 (07:17):
It highlights just how tangled up these global
supply chains are and howdependencies can become
strategic weaknesses.
Speaker 1 (07:24):
So, faced with that and the broader trade war,
what's the US strategy?
We hear terms like reshoringand decoupling.
Speaker 2 (07:32):
Right Reshoring is the idea of bringing
manufacturing back to the US.
Decoupling or maybe de-riskingis the newer term is about
reducing reliance on Chinaspecifically, often by
strengthening supply chains withallied countries.
Speaker 1 (07:47):
And there's government money involved too.
Right Like that big push forsemiconductors.
Speaker 2 (07:50):
Exactly that.
$50 billion in subsidies for USsemiconductor production is a
prime example.
The government is activelytrimmed to incentivize companies
financially to build updomestic capacity and reduce
dependence on potentiallyadversarial supply chains.
Speaker 1 (08:06):
Are we seeing companies actually do this, make
these shifts?
Speaker 2 (08:09):
We are starting to see it.
Yes, it's a slow process, butthere are concrete examples.
Apple moving some iPhoneproduction to India is probably
the most high-profile one.
It shows companies are activelyadapting their global
manufacturing footprint inresponse to these trade tensions
and incentives.
But again, rebuilding supplychains takes years, it's complex
(08:29):
and it often involves highercosts initially.
Speaker 1 (08:36):
OK, now let's get back to that inflation puzzle.
Yeah, because it really isconfusing.
Speaker 2 (08:39):
We see some signs inflation is easing off, which
is good news definitely.
Speaker 1 (08:40):
But then we have these ongoing trade issues,
these high tariffs.
How do they fit together?
Is there a real danger?
They could just, you know, pushinflation back up again.
Speaker 2 (08:49):
There is absolutely a tangible risk yes, A direct
risk of renewed inflationarypressure coming straight from
these trade policies.
Speaker 1 (08:56):
Oh direct.
Speaker 2 (08:57):
Well, the tariffs currently in place, plus the
possibility of more tariffs orfurther escalation, inherently
increase the cost of importedgoods.
It's simple math.
Speaker 1 (09:06):
And businesses pass that cost on.
Speaker 2 (09:07):
Often, yes.
In competitive markets,businesses usually have to pass
on most, if not all, of thatincreased cost to consumers to
protect their margins, if thathappens widely across many
imported goods.
Speaker 1 (09:19):
I could stop inflation from falling or even
reverse it.
Speaker 2 (09:22):
Precisely.
It could halt that recentcooling trend or, worse, start
pushing the numbers back up.
So, while lots of things affectinflation, tareks act like a
direct upward force on prices.
That's crucial to grasp.
Speaker 1 (09:36):
And if inflation does start climbing again because of
this, that potentially bringsthe Federal Reserve back into
the picture, right With interestrate hikes.
Speaker 2 (09:44):
That's the standard playbook.
Yes, if inflation looks likeit's getting sticky or heading
upwards again, the Fed's primarytool is to raise interest rates
to cool down the economy.
Speaker 1 (09:54):
And that has knock on effects for everyone.
Speaker 2 (09:56):
Oh, absolutely.
Higher interest rates meanhigher costs for borrowing money
.
That affect your credit cardrates, makes mortgages more
expensive, raises the cost ofcar loans, business loans,
everything.
Speaker 1 (10:07):
Which can then slow down the whole economy.
Speaker 2 (10:09):
Exactly.
It makes borrowing andinvesting more expensive, which
can dampen economic activity,potentially leading to slower
growth or even recession ifhikes are aggressive.
It's a really delicatebalancing act.
Speaker 1 (10:20):
So monitoring how these trade policies are feeding
into inflation is critical forfiguring out the economic
forecast.
Speaker 2 (10:28):
Absolutely vital.
It connects directly topotential Fed actions and the
overall health of the economy.
Speaker 1 (10:34):
OK, so we've covered the basics of tariffs, the
geopolitical game, the inflationlink.
Let's dig into some of theexpert views and maybe some of
the nuances here that stand up.
Maths analysis you mentionedsounded really interesting.
Speaker 2 (10:51):
What did they find?
Yeah, it was fascinating.
They basically took the Trumpadministration's own formula,
the one they apparently used tofigure out tariff levels and
plugged in the administration'sown data, and what was striking
was that the formula itself,using their numbers, predicted
that these tariffs could lead toover 10% inflation on all goods
imported into the US.
Speaker 1 (11:08):
Wow, based on their own math.
Speaker 2 (11:09):
Based on their own math and the implication was
clear that cost increase wouldultimately land on US consumers.
Their own calculations pointedto a pretty significant
inflationary hit.
Speaker 1 (11:19):
And the analysis also suggested the formula itself
was maybe a bit simplistic.
Speaker 2 (11:23):
That was a key point.
Yes, the stand-up maths teamreally highlighted how the
formula seemed designed just toachieve a trade balance aiming
for exports to equal imports.
Speaker 1 (11:33):
But economics is more complicated than that.
Speaker 2 (11:36):
Way more complicated.
It didn't seem to properlyfactor in things like elasticity
of demand, basically how muchpeople stop buying something
when the price goes up.
Speaker 1 (11:45):
Right.
If the price of somethingdoubles, maybe you just stop
buying it or buy less.
Speaker 2 (11:50):
Exactly?
Or the idea of price passedthrough.
How much of the tariff costactually gets passed on to the
final consumer, versus beingabsorbed by the importer or
exporter?
It seemed to ignore thesecrucial real world economic
factors.
Speaker 1 (12:04):
So an oversimplification.
Speaker 2 (12:05):
A significant oversimplification of a very
complex system.
Speaker 1 (12:09):
And didn't they find some weird quirks in it too?
Like it would suggest tariffseven when the US was selling
more to a country than buyingfrom it.
Speaker 2 (12:16):
That was another puzzling aspect.
Yeah, even in cases of a UStrade surplus with a country,
the formula sometimes still spatout a need for tariffs.
Speaker 1 (12:25):
That doesn't make intuitive sense.
Speaker 2 (12:26):
Not really.
And there was this odd halvingthing applied sometimes and
always a minimum 10 percenttariff suggested.
It lacked a consistent, cleareconomic logic in those
instances.
Speaker 1 (12:36):
Which highlights a bigger point.
They made right that the wholeidea of trade deficit, bad,
trade surplus good is just toosimple.
Speaker 2 (12:43):
Exactly.
That was a really crucialtakeaway from their analysis.
Just looking at the dollarvalue of imports versus exports
misses the whole picture.
Speaker 1 (12:51):
What matters more.
Speaker 2 (12:52):
Well, what are you trading?
Are you importing cheapconsumer goods and exporting
high-value technology, or theother way around?
What's the overall health ofthe economies?
What's the geopoliticalsituation?
Speaker 1 (13:05):
Like the example they used importing wine from New
Zealand while exportingairplanes somewhere else.
Speaker 2 (13:10):
Right.
That's a totally differenteconomic reality than just
saying, oh, there's an imbalanceof X billion dollars.
It's far more nuanced.
Speaker 1 (13:17):
OK, beyond inflation math, what other impacts are
experts pointing to?
You mentioned potential joblosses.
Speaker 2 (13:23):
Yes, the Yale Budget Lab, among others, put out
estimates suggesting potentialjob losses in the US
specifically linked to theeffects of these tariffs
increased costs, productionshifts, that sort of thing.
Speaker 1 (13:34):
And global trade overall?
Is it slowing down?
Speaker 2 (13:37):
The World Trade Organization projected a
noticeable slowdown.
Yeah, I think their estimatewas around a 1.5 percent
shrinkage in global trade growthfor this year, directly linking
it to these kinds of tradetensions and tariffs popping up
around the world.
It shows the interconnectednesstrade friction in one place
slows things down globally.
Speaker 1 (13:56):
And the direct cost to families.
I saw a figure over $1,200 perhousehold.
Speaker 2 (14:02):
Yeah, various analyses have tried to quantify
the direct impact oftariff-related price hikes on
household budgets.
Figures like $1,200 or more peryear on average have been
estimated.
That's a real hit for mostpeople.
Speaker 1 (14:14):
Definitely.
Now, looking at the US versusChina dynamic, who gets hurt
more by this?
Theoretically?
Speaker 2 (14:20):
Well, that's debated.
Some analysts argue China ismaybe more vulnerable if trade
were to stop completely becauseexports are such a big driver of
their economy.
But on the other hand, the USimports a huge amount from China
consumer goods, vitalcomponents so that reliance
gives China leverage too.
If those imports get disruptedor much more expensive, it
(14:40):
causes immediate pain for USconsumers and businesses.
Speaker 1 (14:44):
Like mutually assured disruption.
Speaker 2 (14:45):
Kind of yeah, and you see this reflected in US policy
.
Actually, They've strategicallyexempted certain key tech
products from the highesttariffs.
Speaker 1 (14:53):
Like smartphones.
Semiconductors.
Speaker 2 (14:55):
Exactly Things where the US is still heavily reliant
on Chinese supply chains.
It shows a pragmatic need tokeep those goods flowing, even
if it slightly undermines thebigger decoupling goal.
It reveals that dependency.
Speaker 1 (15:08):
There's also a political difference, isn't
there, in how each country canhandle the economic pain.
Speaker 2 (15:13):
That's a really sharp point.
China's political system, beingmore centralized and
authoritarian, might be betterable to absorb economic hardship
or push through long-term planswithout facing immediate public
backlash.
Speaker 1 (15:26):
Whereas in the US.
Speaker 2 (15:27):
In the US with a more divided political landscape.
Rising prices hit votersdirectly and that can translate
very quickly into politicalpressure on leaders to change
course.
There's less tolerance, perhaps, for prolonged economic pain
caused by policy.
Speaker 1 (15:41):
We see this playing out in markets too.
Speaker 2 (15:43):
right the volatility oh definitely Global financial
markets react strongly to tradewar news.
You see stock markets like theNICI dip on tariff announcements
.
You see investors movingtowards safer assets like gold.
It all reflects the uncertaintythis conflict creates.
Speaker 1 (16:00):
And China's not just sitting there right.
They're making other moves,building alliances.
Speaker 2 (16:04):
Absolutely.
China is actively working tostrengthen economic ties in
Southeast Asia throughinitiatives like Ashen, trying
to build alternative markets andpartnerships, and their
relationship with Europe is alsocomplex and constantly shifting
in response to US actions.
It's a global realignment.
Speaker 1 (16:22):
So the expert consensus seems to be this isn't
just a temporary spat.
It could fundamentally changethings long term.
Speaker 2 (16:28):
Many experts believe so, yes, that these trade shifts
could lead to a major reshapingof geopolitics, potentially a
relative weakening of the USeconomic position and maybe an
acceleration of Asia's owneconomic integration, centered
more around China.
It's potentially a veryprofound shift playing out.
Speaker 1 (16:45):
OK, so let's bring this all back home For everyone
listening.
It's crystal clear this isn'tjust news headlines.
This US-China trade war ishitting our wallets, potentially
our jobs, definitely ourinvestments, without a doubt.
So the million dollar questionwhat can people actually do
about it?
What practical steps can wetake right now to navigate this?
Speaker 2 (17:08):
Right, you can't personally change tariff policy,
obviously, but you absolutelycan take proactive steps to
protect your own finances.
Speaker 1 (17:15):
Like what, what's step one?
Speaker 2 (17:16):
Step one may be the most immediate thing Start
paying closer attention toprices.
Really track what you spend ongroceries, household goods,
things you buy regularly online.
Speaker 1 (17:26):
Keep a list.
Speaker 2 (17:27):
Yeah, or just be more mindful week to week.
It helps you spot those upwardtrends early, see where the
impact is hitting your personalbudget the hardest, gives you
real data.
Speaker 1 (17:35):
That makes sense.
And what about?
Like quality, could companiescut corners to keep prices down?
Speaker 2 (17:41):
That's definitely something to watch for.
As input costs rise due totariffs, some companies might
try to maintain familiar pricepoints by subtly reducing the
quality, maybe using cheaperingredients or materials,
especially in store brands orless prominent lines.
Speaker 1 (17:57):
So be a discerning shopper.
Speaker 2 (17:59):
Be a more discerning shopper.
Absolutely Compare products,read labels, notice if things
seem different.
Speaker 1 (18:05):
Okay, what else?
We talked about the Fed andinterest rates.
Speaker 2 (18:09):
Right.
Stay aware of what the FederalReserve is saying.
Are they talking aboutinflation picking up again?
Are they hinting at more ratehikes?
Speaker 1 (18:16):
Why does that matter day to day?
Speaker 2 (18:17):
Because if rates go up again, your credit card
interest will likely climb.
Mortgage rates could tick upfurther, Car loans get pricier.
Knowing that possibility helpsyou manage your debt.
Maybe prioritize paying downvariable rate debt if you can.
Speaker 1 (18:31):
Good point.
And the job market Should we be?
Speaker 2 (18:34):
worried.
It's wise to be aware, considerthe possibility of a cooling
job market, especially insectors really exposed to
international trade or sensitiveto economic slowdowns.
Speaker 1 (18:44):
So maybe update the resume.
Keep an eye on openings in yourfield.
Speaker 2 (18:48):
Couldn't hurt.
Just staying informed aboutyour industry's health and the
broader employment picture helpsyou prepare mentally, with
nothing else.
Speaker 1 (18:55):
What about managing money day to day?
Any tips there?
Speaker 2 (18:59):
Well, classic advice, but maybe more relevant now.
Take a hard look at yourspending.
Are there non-essential thingsyou could cut back on, at least
temporarily?
Speaker 1 (19:09):
Build up a buffer.
Speaker 2 (19:10):
Exactly.
Building up savings now givesyou a cushion if prices do spike
again or if your income takes ahit.
Every little bit helps createthat financial buffer.
Speaker 1 (19:20):
And maybe locking in costs.
Speaker 2 (19:22):
Yeah, where possible.
If you can lock in a fixed rentfor another year or maybe
switch variable ratesubscriptions to fixed ones,
that adds some predictability toyour budget in an uncertain
time.
Speaker 1 (19:31):
Okay, what if someone listening runs a small business
or relies on imported stuff fora side hustle?
Speaker 2 (19:38):
That's tougher but crucial.
Now is absolutely the time toresearch diversifying your
suppliers.
Speaker 1 (19:43):
Don't put all your eggs in one basket.
Speaker 2 (19:45):
Precisely.
Look for alternative suppliersin countries not directly caught
up in the US-China crossfire.
It might take effort, mighteven cost a bit more initially,
but it reduces your riskdramatically if tariffs escalate
further or supply chains getdisrupted.
Know where your stuff comesfrom.
Speaker 1 (20:02):
And for everyone, that emergency fund seems pretty
key.
Speaker 2 (20:05):
More critical than ever.
An emergency fund is yoursafety net Three to six months
of essential living expenses.
Ideally, it cushions youagainst job loss, unexpected
bills or just the strain ofeverything costing more.
Speaker 1 (20:18):
And just generally staying informed right.
Speaker 2 (20:20):
Absolutely paramount.
Follow reliable business news.
Read different analyses of thetrade situation, understand
what's developing.
The more informed you are, theless likely you are to be caught
completely off guard.
Speaker 1 (20:31):
Financial literacy too.
Keep learning.
Speaker 2 (20:33):
Keep learning.
Follow reputable financialcreators.
Understand basic economics.
Know how these big shifts canimpact your personal situation.
Education empowers you to makebetter decisions.
Speaker 1 (20:44):
What about skills?
Is it worth focusing on certaintypes of work?
Speaker 2 (20:48):
It could be strategic .
Yeah, if you're thinking aboutcareer moves or adding income
streams, maybe focus on skillsless tied to physical goods,
moving across borders, like what?
Tech Things like coding,digital marketing, maybe sales,
content creation Fields wherethe primary asset is knowledge
or service, which are lessvulnerable to supply chain chaos
(21:09):
than manufacturing, forinstance.
High skill, less geographicallydependent work.
Speaker 1 (21:14):
And for investors?
Just brace for bumps.
Speaker 2 (21:17):
Be aware of international news.
Definitely, market volatilityis likely to continue as long as
these trade tensions exist.
Diversification is key, asalways, and maybe understand
which sectors are more exposed.
Speaker 1 (21:28):
And job seekers.
Speaker 2 (21:29):
Maybe target industries that tend to be more
resilient during economicuncertainty Healthcare,
essential services, things likethat so the industries that tend
to be more resilient duringeconomic uncertainty, health
care, essential services, thingslike that.
Speaker 1 (21:37):
So the big takeaway seems to be yeah, be flexible,
stay informed and be ready toadjust.
Speaker 2 (21:42):
That really sums it up.
This is a dynamic situation.
Things change.
Your ability to adapt yourplans, your budget, maybe even
your career focus, is going tobe crucial.
Speaker 1 (21:52):
Right, because these huge global economic shifts,
these trade wars, they mightseem distant, like something
happening way over there.
Speaker 2 (21:59):
Yeah, abstract stuff.
Speaker 1 (22:01):
But it's vital to remember, as we've hopefully
shown, they have incredibly real, tangible effects on your daily
life, on your financialsecurity.
Speaker 2 (22:09):
Absolutely, it hits home.
Speaker 1 (22:11):
So here's maybe a final thought to leave you with
as you navigate things.
This interconnected globaleconomy means these big power
moves between countries.
They don't just affect theplayers involved.
Speaker 2 (22:25):
No, the ripples spread wide.
Speaker 1 (22:26):
They create ripples felt by literally everyone,
everywhere, understanding thosedynamics, seeing how a tariff
decision in Washington orBeijing can eventually affect
the price of milk or your jobprospects.
That understanding is power.
It's crucial for navigating notjust today but the economic
future we're all heading into.
Speaker 2 (22:43):
Couldn't agree more.
We really hope this deep divehas given you a clearer picture,
a framework for thinking aboutthe US-China trade war, and
maybe empowers you to keepasking questions and stay
engaged as this whole situationkeeps evolving.
Speaker 1 (22:55):
Thanks for diving deep with us.
Imagine walking into a store and suddenly the price
tags have jumped like 30, 50,maybe even 100 percent higher on
some things.
Speaker 2 (00:09):
Yeah.
Speaker 1 (00:09):
Feels pretty strange, right, but that's actually the
real impact of this hugeeconomic game going on right now
the US-China trade war.
Speaker 2 (00:18):
Exactly, and we're talking serious numbers here.
Tariffs these taxes arereaching levels like what?
145 percent on some US importsfrom China.
Speaker 1 (00:27):
And 125 percent the other way around on certain
Chinese goods coming into the US.
It's like a punch to the wallet.
Speaker 2 (00:33):
It really is, and it's easy to sort of tune out.
When you hear trade war tariffs, it sounds distant.
Speaker 1 (00:40):
Right.
Speaker 2 (00:40):
But the key thing, the really crucial thing, is
understanding this isn't justboardroom stuff.
A tariff is just a tax onimported goods.
Speaker 1 (00:47):
Simple as that.
Speaker 2 (00:48):
Simple as that, and what's fascinating, and maybe a
bit worrying, is how directlythat tax hits the price you pay
for well, almost everything yourphone, your furniture, you name
it.
Speaker 1 (00:58):
Okay, so that's exactly what we're doing in this
deep dive.
Our mission is clear we'regoing to take apart this ongoing
US-China trade war and explainexactly what it means for you
listening right now, in 2025.
We want to cut through thepolitics, the corporate speak.
Speaker 2 (01:13):
Yeah, get to the real world stuff.
Speaker 1 (01:15):
Exactly?
How does it affect yourshopping budget, your job, maybe
even your investments?
Speaker 2 (01:21):
And it's definitely confusing out there.
You see headlines, you knowinflation seems to be cooling
off a bit, which sounds likegood news.
Speaker 1 (01:28):
A little bit of relief, yeah.
Speaker 2 (01:29):
But then these very trade moves we're talking about,
they carry this very real riskof pushing inflation right back
up again.
Speaker 1 (01:37):
So how do we square that?
That's the big question we wantto tackle how do you make sense
of these mixed signals andfigure out where things are
actually heading Right?
And to do that we've pulledtogether a lot of different
sources.
Speaker 2 (01:50):
Yeah, we've looked at news reports detailed economic
analyses, and even there wasthat interesting mathematical
breakdown kind of looking at howsome of these tariffs were
first calculated.
Speaker 1 (01:57):
Our goal really is just to give you a clear, solid
understanding based on all thisresearch.
Speaker 2 (02:01):
OK, let's dive in then.
First things first.
What exactly is a tariff, andhow does it hit our wallet
straight away?
Speaker 1 (02:08):
Okay.
So, like we said, at its heart,a tariff is just a tax.
It's imposed on goods whenthey're brought into a country
from somewhere else, got it?
The immediate, most obviousimpact the price of those
imported goods goes up for theperson buying them, the consumer
Right.
So goes up for the personbuying them, the consumer Right.
So think about it like this Anitem costs $100 to import.
Suddenly there's a 30% tariffslapped on it.
(02:30):
Okay, now the import cost is$130.
And by the time that item getsto the store, that $30 increase,
maybe even a bit more to coverhassle, often gets passed
straight on to you.
Speaker 2 (02:42):
And with tariffs hitting those really high
numbers we mentioned Edison 30%,sometimes way over 100%.
Speaker 1 (02:46):
Yeah, that $100 item could easily end up costing you
$130, $160, maybe even $245 ormore in some extreme cases.
The price jump can be reallysubstantial.
Speaker 2 (02:57):
And we're not just talking about, like fancy luxury
goods.
Here are we.
This affects everyday stuff.
Oh, absolutely.
It's hitting things we all useconstantly.
You know the tech gear phones,laptops, the clothes we wear,
appliances for the kitchen.
Even food, even a growingamount of food products.
Yeah, tariffs are sort ofquietly adding costs across the
(03:18):
board.
So bottom line, your purchasingpower goes down, your money
just doesn't stretch as far.
Speaker 1 (03:24):
OK, and what about say small businesses or people
doing side hustles, maybeselling things online?
A lot of them rely on gettinggoods from overseas, right?
Speaker 2 (03:33):
Precisely, and that's a huge ripple effect.
These entrepreneurs, thesesmall operations, often depend
on sourcing internationally orusing suppliers abroad.
Right these tariffs, they actlike a sudden major cost
increase.
It squeezes their profitmargins, which are often pretty
tight to begin with.
Speaker 1 (03:50):
So what do they do?
Speaker 2 (03:51):
Well, they face tough choices.
Do they raise their prices?
That might drive customers away?
Do they just eat the costthemselves that hits their own
income?
Speaker 1 (03:58):
Or try and find someone else to buy from.
Speaker 2 (04:00):
Exactly Scramble to find alternative suppliers, but
that takes time, effort andmaybe the quality isn't the same
or the supply isn't as reliable.
It really puts a damper onsmall business growth and, you
know, innovation.
Speaker 1 (04:12):
And this leads to bigger picture stuff too.
Right, because these costsdon't just stop with the small
guys or the consumers.
Big companies feel this too.
Speaker 2 (04:19):
Absolutely.
When large companies facesignificantly higher costs for
components they import or evenfinished goods, they have to
make some big strategic calls.
Speaker 1 (04:28):
Like what Less hiring ?
Speaker 2 (04:30):
That's one possibility.
Yeah, A slowdown in hiring tomanage costs or, in tougher
situations, maybe even layoffsas they try to cut labor
expenses.
Speaker 1 (04:39):
Automation too, I guess, if labor costs or
imported parts costs go up.
Speaker 2 (04:43):
Automation definitely becomes more attractive.
It's a way to potentiallybypass some costs.
And then there's the really bigone long term shifting
production.
Moving factories, movingfactories, deciding to shift
manufacturing out of countrieshit by high tariffs like China
and moving to places like, say,vietnam or Mexico or India.
Speaker 1 (05:03):
That creates huge shifts right Reshuffles the
whole global supply chain.
Speaker 2 (05:07):
It does, and that can lead to job instability, both
in the country losing theproduction and potentially even
in the country gaining it asthings readjust.
It's a massive undertaking.
Speaker 1 (05:16):
So, zooming out even further, it feels like this is
way bigger than just economics,doesn't it?
It's more like a well, a globalchess match.
Speaker 2 (05:28):
That's a perfect way to put it.
It's absolutely more than justdollars and cents.
Speaker 1 (05:30):
It's a fundamental geopolitical contest Between the
US and China.
Speaker 2 (05:32):
Primarily, yes.
A contest for leadership incritical industries, technology,
energy and for overall globalinfluence.
The tariffs are just one of themain weapons being used in this
broader fight.
Speaker 1 (05:45):
Okay, so let's look at the specifics.
The US tariffs on Chinese goods.
What are they targeting mainly?
Speaker 2 (05:50):
The US has been pretty strategic, targeting
sectors like electric vehicles,ev batteries, solar panels
things seen as key to the futureeconomy.
Speaker 1 (05:58):
And materials too.
Speaker 2 (05:59):
And certain steel and aluminum products.
Yeah, the clear goal is to tryand boost US domestic industries
in these areas and cut down thereliance on China.
Speaker 1 (06:08):
And China's response.
They hit back with tariffs too.
Speaker 2 (06:12):
Oh yeah, definitely Retaliation was expected, and it
came.
China imposed its own tariffson a range of US goods.
Things like agriculturalproducts soybeans, for example
were big targets.
What else Certain chemicals,specific tech components too.
It's a tit-for-tat escalationreally designed to put pressure
back on the US economy, hittingbusinesses and consumers there
(06:34):
as well.
Speaker 1 (06:34):
But China has another card to play, doesn't it
Something pretty unique the rareearth materials.
Speaker 2 (06:40):
Ah, yes, that's a huge factor Rare earths for
anyone listening who isn'tfamiliar, these aren't actually
that rare, but they're difficultto mine and process cleanly.
Speaker 1 (06:48):
And crucial for modern tech.
Speaker 2 (06:50):
Absolutely essential.
They're in our smartphonescreens, ev batteries, wind
turbines, even sophisticatedmilitary technology, and China.
They dominate the globalprocessing of these materials,
so they control the supply To avery large extent, yes, and that
gives them immense leverage.
By threatening to restrictexports, or actually doing it,
they can put serious pressure onUS industries that absolutely
(07:13):
depend on these materials.
Speaker 1 (07:14):
That sounds like a major vulnerability for the US
it is.
Speaker 2 (07:17):
It highlights just how tangled up these global
supply chains are and howdependencies can become
strategic weaknesses.
Speaker 1 (07:24):
So, faced with that and the broader trade war,
what's the US strategy?
We hear terms like reshoringand decoupling.
Speaker 2 (07:32):
Right Reshoring is the idea of bringing
manufacturing back to the US.
Decoupling or maybe de-riskingis the newer term is about
reducing reliance on Chinaspecifically, often by
strengthening supply chains withallied countries.
Speaker 1 (07:47):
And there's government money involved too.
Right Like that big push forsemiconductors.
Speaker 2 (07:50):
Exactly that.
$50 billion in subsidies for USsemiconductor production is a
prime example.
The government is activelytrimmed to incentivize companies
financially to build updomestic capacity and reduce
dependence on potentiallyadversarial supply chains.
Speaker 1 (08:06):
Are we seeing companies actually do this, make
these shifts?
Speaker 2 (08:09):
We are starting to see it.
Yes, it's a slow process, butthere are concrete examples.
Apple moving some iPhoneproduction to India is probably
the most high-profile one.
It shows companies are activelyadapting their global
manufacturing footprint inresponse to these trade tensions
and incentives.
But again, rebuilding supplychains takes years, it's complex
(08:29):
and it often involves highercosts initially.
Speaker 1 (08:36):
OK, now let's get back to that inflation puzzle.
Yeah, because it really isconfusing.
Speaker 2 (08:39):
We see some signs inflation is easing off, which
is good news definitely.
Speaker 1 (08:40):
But then we have these ongoing trade issues,
these high tariffs.
How do they fit together?
Is there a real danger?
They could just, you know, pushinflation back up again.
Speaker 2 (08:49):
There is absolutely a tangible risk yes, A direct
risk of renewed inflationarypressure coming straight from
these trade policies.
Speaker 1 (08:56):
Oh direct.
Speaker 2 (08:57):
Well, the tariffs currently in place, plus the
possibility of more tariffs orfurther escalation, inherently
increase the cost of importedgoods.
It's simple math.
Speaker 1 (09:06):
And businesses pass that cost on.
Speaker 2 (09:07):
Often, yes.
In competitive markets,businesses usually have to pass
on most, if not all, of thatincreased cost to consumers to
protect their margins, if thathappens widely across many
imported goods.
Speaker 1 (09:19):
I could stop inflation from falling or even
reverse it.
Speaker 2 (09:22):
Precisely.
It could halt that recentcooling trend or, worse, start
pushing the numbers back up.
So, while lots of things affectinflation, tareks act like a
direct upward force on prices.
That's crucial to grasp.
Speaker 1 (09:36):
And if inflation does start climbing again because of
this, that potentially bringsthe Federal Reserve back into
the picture, right With interestrate hikes.
Speaker 2 (09:44):
That's the standard playbook.
Yes, if inflation looks likeit's getting sticky or heading
upwards again, the Fed's primarytool is to raise interest rates
to cool down the economy.
Speaker 1 (09:54):
And that has knock on effects for everyone.
Speaker 2 (09:56):
Oh, absolutely.
Higher interest rates meanhigher costs for borrowing money
.
That affect your credit cardrates, makes mortgages more
expensive, raises the cost ofcar loans, business loans,
everything.
Speaker 1 (10:07):
Which can then slow down the whole economy.
Speaker 2 (10:09):
Exactly.
It makes borrowing andinvesting more expensive, which
can dampen economic activity,potentially leading to slower
growth or even recession ifhikes are aggressive.
It's a really delicatebalancing act.
Speaker 1 (10:20):
So monitoring how these trade policies are feeding
into inflation is critical forfiguring out the economic
forecast.
Speaker 2 (10:28):
Absolutely vital.
It connects directly topotential Fed actions and the
overall health of the economy.
Speaker 1 (10:34):
OK, so we've covered the basics of tariffs, the
geopolitical game, the inflationlink.
Let's dig into some of theexpert views and maybe some of
the nuances here that stand up.
Maths analysis you mentionedsounded really interesting.
Speaker 2 (10:51):
What did they find?
Yeah, it was fascinating.
They basically took the Trumpadministration's own formula,
the one they apparently used tofigure out tariff levels and
plugged in the administration'sown data, and what was striking
was that the formula itself,using their numbers, predicted
that these tariffs could lead toover 10% inflation on all goods
imported into the US.
Speaker 1 (11:08):
Wow, based on their own math.
Speaker 2 (11:09):
Based on their own math and the implication was
clear that cost increase wouldultimately land on US consumers.
Their own calculations pointedto a pretty significant
inflationary hit.
Speaker 1 (11:19):
And the analysis also suggested the formula itself
was maybe a bit simplistic.
Speaker 2 (11:23):
That was a key point.
Yes, the stand-up maths teamreally highlighted how the
formula seemed designed just toachieve a trade balance aiming
for exports to equal imports.
Speaker 1 (11:33):
But economics is more complicated than that.
Speaker 2 (11:36):
Way more complicated.
It didn't seem to properlyfactor in things like elasticity
of demand, basically how muchpeople stop buying something
when the price goes up.
Speaker 1 (11:45):
Right.
If the price of somethingdoubles, maybe you just stop
buying it or buy less.
Speaker 2 (11:50):
Exactly?
Or the idea of price passedthrough.
How much of the tariff costactually gets passed on to the
final consumer, versus beingabsorbed by the importer or
exporter?
It seemed to ignore thesecrucial real world economic
factors.
Speaker 1 (12:04):
So an oversimplification.
Speaker 2 (12:05):
A significant oversimplification of a very
complex system.
Speaker 1 (12:09):
And didn't they find some weird quirks in it too?
Like it would suggest tariffseven when the US was selling
more to a country than buyingfrom it.
Speaker 2 (12:16):
That was another puzzling aspect.
Yeah, even in cases of a UStrade surplus with a country,
the formula sometimes still spatout a need for tariffs.
Speaker 1 (12:25):
That doesn't make intuitive sense.
Speaker 2 (12:26):
Not really.
And there was this odd halvingthing applied sometimes and
always a minimum 10 percenttariff suggested.
It lacked a consistent, cleareconomic logic in those
instances.
Speaker 1 (12:36):
Which highlights a bigger point.
They made right that the wholeidea of trade deficit, bad,
trade surplus good is just toosimple.
Speaker 2 (12:43):
Exactly.
That was a really crucialtakeaway from their analysis.
Just looking at the dollarvalue of imports versus exports
misses the whole picture.
Speaker 1 (12:51):
What matters more.
Speaker 2 (12:52):
Well, what are you trading?
Are you importing cheapconsumer goods and exporting
high-value technology, or theother way around?
What's the overall health ofthe economies?
What's the geopoliticalsituation?
Speaker 1 (13:05):
Like the example they used importing wine from New
Zealand while exportingairplanes somewhere else.
Speaker 2 (13:10):
Right.
That's a totally differenteconomic reality than just
saying, oh, there's an imbalanceof X billion dollars.
It's far more nuanced.
Speaker 1 (13:17):
OK, beyond inflation math, what other impacts are
experts pointing to?
You mentioned potential joblosses.
Speaker 2 (13:23):
Yes, the Yale Budget Lab, among others, put out
estimates suggesting potentialjob losses in the US
specifically linked to theeffects of these tariffs
increased costs, productionshifts, that sort of thing.
Speaker 1 (13:34):
And global trade overall?
Is it slowing down?
Speaker 2 (13:37):
The World Trade Organization projected a
noticeable slowdown.
Yeah, I think their estimatewas around a 1.5 percent
shrinkage in global trade growthfor this year, directly linking
it to these kinds of tradetensions and tariffs popping up
around the world.
It shows the interconnectednesstrade friction in one place
slows things down globally.
Speaker 1 (13:56):
And the direct cost to families.
I saw a figure over $1,200 perhousehold.
Speaker 2 (14:02):
Yeah, various analyses have tried to quantify
the direct impact oftariff-related price hikes on
household budgets.
Figures like $1,200 or more peryear on average have been
estimated.
That's a real hit for mostpeople.
Speaker 1 (14:14):
Definitely.
Now, looking at the US versusChina dynamic, who gets hurt
more by this?
Theoretically?
Speaker 2 (14:20):
Well, that's debated.
Some analysts argue China ismaybe more vulnerable if trade
were to stop completely becauseexports are such a big driver of
their economy.
But on the other hand, the USimports a huge amount from China
consumer goods, vitalcomponents so that reliance
gives China leverage too.
If those imports get disruptedor much more expensive, it
(14:40):
causes immediate pain for USconsumers and businesses.
Speaker 1 (14:44):
Like mutually assured disruption.
Speaker 2 (14:45):
Kind of yeah, and you see this reflected in US policy
.
Actually, They've strategicallyexempted certain key tech
products from the highesttariffs.
Speaker 1 (14:53):
Like smartphones.
Semiconductors.
Speaker 2 (14:55):
Exactly Things where the US is still heavily reliant
on Chinese supply chains.
It shows a pragmatic need tokeep those goods flowing, even
if it slightly undermines thebigger decoupling goal.
It reveals that dependency.
Speaker 1 (15:08):
There's also a political difference, isn't
there, in how each country canhandle the economic pain.
Speaker 2 (15:13):
That's a really sharp point.
China's political system, beingmore centralized and
authoritarian, might be betterable to absorb economic hardship
or push through long-term planswithout facing immediate public
backlash.
Speaker 1 (15:26):
Whereas in the US.
Speaker 2 (15:27):
In the US with a more divided political landscape.
Rising prices hit votersdirectly and that can translate
very quickly into politicalpressure on leaders to change
course.
There's less tolerance, perhaps, for prolonged economic pain
caused by policy.
Speaker 1 (15:41):
We see this playing out in markets too.
Speaker 2 (15:43):
right the volatility oh definitely Global financial
markets react strongly to tradewar news.
You see stock markets like theNICI dip on tariff announcements
.
You see investors movingtowards safer assets like gold.
It all reflects the uncertaintythis conflict creates.
Speaker 1 (16:00):
And China's not just sitting there right.
They're making other moves,building alliances.
Speaker 2 (16:04):
Absolutely.
China is actively working tostrengthen economic ties in
Southeast Asia throughinitiatives like Ashen, trying
to build alternative markets andpartnerships, and their
relationship with Europe is alsocomplex and constantly shifting
in response to US actions.
It's a global realignment.
Speaker 1 (16:22):
So the expert consensus seems to be this isn't
just a temporary spat.
It could fundamentally changethings long term.
Speaker 2 (16:28):
Many experts believe so, yes, that these trade shifts
could lead to a major reshapingof geopolitics, potentially a
relative weakening of the USeconomic position and maybe an
acceleration of Asia's owneconomic integration, centered
more around China.
It's potentially a veryprofound shift playing out.
Speaker 1 (16:45):
OK, so let's bring this all back home For everyone
listening.
It's crystal clear this isn'tjust news headlines.
This US-China trade war ishitting our wallets, potentially
our jobs, definitely ourinvestments, without a doubt.
So the million dollar questionwhat can people actually do
about it?
What practical steps can wetake right now to navigate this?
Speaker 2 (17:08):
Right, you can't personally change tariff policy,
obviously, but you absolutelycan take proactive steps to
protect your own finances.
Speaker 1 (17:15):
Like what, what's step one?
Speaker 2 (17:16):
Step one may be the most immediate thing Start
paying closer attention toprices.
Really track what you spend ongroceries, household goods,
things you buy regularly online.
Speaker 1 (17:26):
Keep a list.
Speaker 2 (17:27):
Yeah, or just be more mindful week to week.
It helps you spot those upwardtrends early, see where the
impact is hitting your personalbudget the hardest, gives you
real data.
Speaker 1 (17:35):
That makes sense.
And what about?
Like quality, could companiescut corners to keep prices down?
Speaker 2 (17:41):
That's definitely something to watch for.
As input costs rise due totariffs, some companies might
try to maintain familiar pricepoints by subtly reducing the
quality, maybe using cheaperingredients or materials,
especially in store brands orless prominent lines.
Speaker 1 (17:57):
So be a discerning shopper.
Speaker 2 (17:59):
Be a more discerning shopper.
Absolutely Compare products,read labels, notice if things
seem different.
Speaker 1 (18:05):
Okay, what else?
We talked about the Fed andinterest rates.
Speaker 2 (18:09):
Right.
Stay aware of what the FederalReserve is saying.
Are they talking aboutinflation picking up again?
Are they hinting at more ratehikes?
Speaker 1 (18:16):
Why does that matter day to day?
Speaker 2 (18:17):
Because if rates go up again, your credit card
interest will likely climb.
Mortgage rates could tick upfurther, Car loans get pricier.
Knowing that possibility helpsyou manage your debt.
Maybe prioritize paying downvariable rate debt if you can.
Speaker 1 (18:31):
Good point.
And the job market Should we be?
Speaker 2 (18:34):
worried.
It's wise to be aware, considerthe possibility of a cooling
job market, especially insectors really exposed to
international trade or sensitiveto economic slowdowns.
Speaker 1 (18:44):
So maybe update the resume.
Keep an eye on openings in yourfield.
Speaker 2 (18:48):
Couldn't hurt.
Just staying informed aboutyour industry's health and the
broader employment picture helpsyou prepare mentally, with
nothing else.
Speaker 1 (18:55):
What about managing money day to day?
Any tips there?
Speaker 2 (18:59):
Well, classic advice, but maybe more relevant now.
Take a hard look at yourspending.
Are there non-essential thingsyou could cut back on, at least
temporarily?
Speaker 1 (19:09):
Build up a buffer.
Speaker 2 (19:10):
Exactly.
Building up savings now givesyou a cushion if prices do spike
again or if your income takes ahit.
Every little bit helps createthat financial buffer.
Speaker 1 (19:20):
And maybe locking in costs.
Speaker 2 (19:22):
Yeah, where possible.
If you can lock in a fixed rentfor another year or maybe
switch variable ratesubscriptions to fixed ones,
that adds some predictability toyour budget in an uncertain
time.
Speaker 1 (19:31):
Okay, what if someone listening runs a small business
or relies on imported stuff fora side hustle?
Speaker 2 (19:38):
That's tougher but crucial.
Now is absolutely the time toresearch diversifying your
suppliers.
Speaker 1 (19:43):
Don't put all your eggs in one basket.
Speaker 2 (19:45):
Precisely.
Look for alternative suppliersin countries not directly caught
up in the US-China crossfire.
It might take effort, mighteven cost a bit more initially,
but it reduces your riskdramatically if tariffs escalate
further or supply chains getdisrupted.
Know where your stuff comesfrom.
Speaker 1 (20:02):
And for everyone, that emergency fund seems pretty
key.
Speaker 2 (20:05):
More critical than ever.
An emergency fund is yoursafety net Three to six months
of essential living expenses.
Ideally, it cushions youagainst job loss, unexpected
bills or just the strain ofeverything costing more.
Speaker 1 (20:18):
And just generally staying informed right.
Speaker 2 (20:20):
Absolutely paramount.
Follow reliable business news.
Read different analyses of thetrade situation, understand
what's developing.
The more informed you are, theless likely you are to be caught
completely off guard.
Speaker 1 (20:31):
Financial literacy too.
Keep learning.
Speaker 2 (20:33):
Keep learning.
Follow reputable financialcreators.
Understand basic economics.
Know how these big shifts canimpact your personal situation.
Education empowers you to makebetter decisions.
Speaker 1 (20:44):
What about skills?
Is it worth focusing on certaintypes of work?
Speaker 2 (20:48):
It could be strategic .
Yeah, if you're thinking aboutcareer moves or adding income
streams, maybe focus on skillsless tied to physical goods,
moving across borders, like what?
Tech Things like coding,digital marketing, maybe sales,
content creation Fields wherethe primary asset is knowledge
or service, which are lessvulnerable to supply chain chaos
(21:09):
than manufacturing, forinstance.
High skill, less geographicallydependent work.
Speaker 1 (21:14):
And for investors?
Just brace for bumps.
Speaker 2 (21:17):
Be aware of international news.
Definitely, market volatilityis likely to continue as long as
these trade tensions exist.
Diversification is key, asalways, and maybe understand
which sectors are more exposed.
Speaker 1 (21:28):
And job seekers.
Speaker 2 (21:29):
Maybe target industries that tend to be more
resilient during economicuncertainty Healthcare,
essential services, things likethat so the industries that tend
to be more resilient duringeconomic uncertainty, health
care, essential services, thingslike that.
Speaker 1 (21:37):
So the big takeaway seems to be yeah, be flexible,
stay informed and be ready toadjust.
Speaker 2 (21:42):
That really sums it up.
This is a dynamic situation.
Things change.
Your ability to adapt yourplans, your budget, maybe even
your career focus, is going tobe crucial.
Speaker 1 (21:52):
Right, because these huge global economic shifts,
these trade wars, they mightseem distant, like something
happening way over there.
Speaker 2 (21:59):
Yeah, abstract stuff.
Speaker 1 (22:01):
But it's vital to remember, as we've hopefully
shown, they have incredibly real, tangible effects on your daily
life, on your financialsecurity.
Speaker 2 (22:09):
Absolutely, it hits home.
Speaker 1 (22:11):
So here's maybe a final thought to leave you with
as you navigate things.
This interconnected globaleconomy means these big power
moves between countries.
They don't just affect theplayers involved.
Speaker 2 (22:25):
No, the ripples spread wide.
Speaker 1 (22:26):
They create ripples felt by literally everyone,
everywhere, understanding thosedynamics, seeing how a tariff
decision in Washington orBeijing can eventually affect
the price of milk or your jobprospects.
That understanding is power.
It's crucial for navigating notjust today but the economic
future we're all heading into.
Speaker 2 (22:43):
Couldn't agree more.
We really hope this deep divehas given you a clearer picture,
a framework for thinking aboutthe US-China trade war, and
maybe empowers you to keepasking questions and stay
engaged as this whole situationkeeps evolving.
Speaker 1 (22:55):
Thanks for diving deep with us.
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