Now that AI got involved it’s on topic for TechTakes I guess. Making a containment thread because there might be a lot to sneer about this.
Boring version of of the main story: https://text.npr.org/nx-s1-5345802
Skynet declares trade war on penguins: https://archive.is/Nn5MC
Reactionary news outlet celebrates 77% drop in stock price by taking everyone else down with them: https://bsky.app/profile/brianmfloyd.bsky.social/post/3lluybov3i22o
United Healthcare of all things is green though.
Can we get this thread pinned? I guess that this thread will keep on giving 🍿
If only Musk had been a Real Gamer, he would have played Vic3 (as the one person who can buy all the Paradox games + all the DLC), he could have warned them that going from free markets to tariffs is going to be a huge disaster. Instant going from Great Power to Minor Power. Hope the 50% reduction in migration attraction is worth the massive costs and being invaded by the UK again. The 125% change in interest rates is also going to really fuck the country over.
(yeah sorry im a big nerd, also just took the %es from the wiki, not sure the UK would invade, but any player prob would, I did once as the Dutch, defeating the US and getting the District of Columbia which was quite amusing (for a joke, the land itself is quite worthless ingame))
as the one person who can buy all the Paradox games + all the DLC
LOL
I did once as the Dutch, defeating the US
Niew New Amsterdam
Yeah, a big reason why I took it. Making America Dutch again. Was 100% not worth the infamy
To be fair their calculation also involves multiplying by the carefully chosen factors of 4 and 0.25. It’s a macroeconomics thing you probably wouldn’t understand. https://ustr.gov/issue-areas/reciprocal-tariff-calculations
The recent experience with U.S. tariffs on China has demonstrated that tariff passthrough to retail prices was low (Cavallo et al, 2021).
This “Cavallo” reference isn’t actually listed in their citations (gee I wonder why) but appears to be Tariff Pass-Through at the Border and at the Store: Evidence from US Trade Policy (link).
Meanwhile Cavallo et al 2021:
Chinese exporters did not lower their dollar prices by much, despite the recent appreciation of the dollar. By contrast, US exporters significantly lowered prices affected by foreign retaliatory tariffs. In US stores, the price impact is more limited, suggesting that retail margins have fallen. […] Our results imply that, so far, the tariffs’ incidence has fallen in large part on US firms.
Amazing. The government’s official position is that tariffs are OK because both US exporters and importers get less money.
I know this is going to hurt millions of regular people in and outside the US, many of them through no fault of their own. Despite that I can’t help myself.
Financial Times agrees with this analysis
