Tariffs act as a tax on imported goods, making them more expensive. This increased cost can reduce consumer purchasing power, possibly leading to companies cutting back on investment and even reducing its workforce leading to higher levels of unemployment.
Donald Trump's tough tariffs may trigger retaliatory measures and cause a ripple effect where global supply chains are disrupted, trade volumes decline and business confidence takes a big hit. The global economy faces a double whammy - higher costs domestically with lower demand and reduced exports internationally.
This may trigger a recession.
Investing in a Bear Market calls for a thoughtful disciplined approach on capital preservation, quality assets and to seek out opportunities to buy stocks that are on sale.
Let's hope that US & China can resolve the tariffs issue soon, the consequences of not doing so can result in severe economic strife.
@Tiger_comments @TigerStars @Tiger_SG @CaptainTiger
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