Steven

They're like, oh, let's turn this dial by one degree and see what happens. And then like, oh, it blows up. Oh, I shouldn't have done that. Tariffs is like, let's hit it with a baseball bat a couple times. Let's hit it with like a crowbar and see what happens. Like the global economy is so interconnected.

And if you go to your local grocery store, Target, Walmart, whatever it might be, and go around and look at where that stuff was made. I mean, and it's all over the world. It's everywhere. And once you shut that down and put barriers on that, it can become a big problem very quickly.

And if you go to your local grocery store, Target, Walmart, whatever it might be, and go around and look at where that stuff was made. I mean, and it's all over the world. It's everywhere. And once you shut that down and put barriers on that, it can become a big problem very quickly.

One thing I've noticed in the last couple of weeks that I think is very interesting are the number of educated and smart friends that I have who send me a text or a call or an email and say, hey, Can you explain what a tariff is? I see this word, but I don't really know what it is.

One thing I've noticed in the last couple of weeks that I think is very interesting are the number of educated and smart friends that I have who send me a text or a call or an email and say, hey, Can you explain what a tariff is? I see this word, but I don't really know what it is.

And I think that's important because I don't think the average person understands what can happen to the economy if this persists for a long period of time.

And I think that's important because I don't think the average person understands what can happen to the economy if this persists for a long period of time.

First, I would say is tariffs have been used for hundreds of years. And there is, there can be a very good, useful purpose for them in the economy. I think as they're structured right now in the United States, it's a huge mistake. It has a potential to be a catastrophe. But they can be a useful thing in the economy. This is not a black and white thing.

First, I would say is tariffs have been used for hundreds of years. And there is, there can be a very good, useful purpose for them in the economy. I think as they're structured right now in the United States, it's a huge mistake. It has a potential to be a catastrophe. But they can be a useful thing in the economy. This is not a black and white thing.

What a tariff is, is, let's keep this very simple. The United States buys a bunch of computers that are made in China, a bunch of iPhones that are made in China. They're on a container ship. They ship them to the United States. When they get to the port in the United States, the importer, which is Apple, bringing the iPhones in that are made in China. An American company.

What a tariff is, is, let's keep this very simple. The United States buys a bunch of computers that are made in China, a bunch of iPhones that are made in China. They're on a container ship. They ship them to the United States. When they get to the port in the United States, the importer, which is Apple, bringing the iPhones in that are made in China. An American company.

Has to pay the tariff that's put on it. And a lot of people, and it's very understandable why they would think this, would say, well, no, in that situation, China pays the tariff. And there could be a situation where China starts discounting the iPhones. The company that's making the iPhones would discount it. There can be some offset. But the person who's paying that tax is the importer.

Has to pay the tariff that's put on it. And a lot of people, and it's very understandable why they would think this, would say, well, no, in that situation, China pays the tariff. And there could be a situation where China starts discounting the iPhones. The company that's making the iPhones would discount it. There can be some offset. But the person who's paying that tax is the importer.

The number doesn't matter because trade will eventually will just stop at those levels. It just won't happen.

The number doesn't matter because trade will eventually will just stop at those levels. It just won't happen.

Here's an example that most people will understand. Sales tax. In most states in the United States, it's 6% to 10%. If you go to the store and buy something, you add the sales tax to that.

Here's an example that most people will understand. Sales tax. In most states in the United States, it's 6% to 10%. If you go to the store and buy something, you add the sales tax to that.

Yeah, fair. Who pays that is not the store. It's the customer. So even if the tax is put on the seller, the seller passes it on to you, the customer, and it says right on your receipt. You bought something for $10, and then there's your sales tax, and here's what you're going to pay in the end. And so it's similar from that.

Yeah, fair. Who pays that is not the store. It's the customer. So even if the tax is put on the seller, the seller passes it on to you, the customer, and it says right on your receipt. You bought something for $10, and then there's your sales tax, and here's what you're going to pay in the end. And so it's similar from that.

Now, let me explain this, why there would be a very useful case for tariffs to show that this is not black and white, and this is not, oh, all tariffs are bad. This happened in the United States during COVID. We were virtually 100% reliant on masks and 95 masks that were made in China and Korea and not in the United States.