What it is: The United States has proposed a “temporary” tariff of 25% levied on goods manufactured in China, Mexico, and other countries. This action marks a radical policy departure. In fact, every President since the New Deal has backed efforts to minimize or to eliminate trade barriers. This action has effectively promoted economic prosperity as well as has contributed to improved relations between nations.

What brought it about: Economists seem to generally agree that these trade agreements or disagreements are a long shot attempt to strengthen U.S.-based manufacturers. It is viewed as a forced attempt for Americans to buy American. This scheme is actually short-sighted as many manufacturers, such as those in the automotive industry, send raw materials for steel manufacture to Asian countries. Detroit’s automakers then buy the finished, foreign-made auto parts to assemble their vehicles. This process sounds convoluted but in truth is far less expensive than it would cost if those same parts had been made in the U.S.

Look closely at that Subaru you drive. See the little decal in the back side window? Yup. It is assembled in Oklahoma, U.S. A. from parts, some of which have been manufactured abroad to keep the vehicle’s sticker costs down. The only question that remains: Will an Outback that costs 15% more still be attractive to American drivers? Can hardcore Asian-import drivers turn to GM? And just what percentage of the vehicles manufactured in Detroit are actually fully American-made?

What it brought about: Tit for tat on a global scale. No sooner had the levy been announced than opposing nations levied similar tariffs on American-made goods. Gentlemen, it would appear the U.S. has sparked an international trade war.

What it means to U.S. Consumers and Businesses: Basically, for the duration, or until these tariffs are lifted or reduced, everyone is going to have to ante up for roughly 15% more than they would have paid for the same goods prior to these restrictions being imposed. That is because even though the tariffs have been raised to 25% for imported goods, the U.S. had already been charging 10% for goods imported into the country.

Items are going to increase in cost, but not value. It will have multiple effects: fewer new imported cars will be sold, and quality used vehicles will increase in value. And we will all receive an economics lesson when we learn just how many products that Americans cannot do without are manufactured in Asia: Here is a partial list:

• Electronics- computers, audio systems, cell phones, home security systems, lawn mowers, we already covered automotive, but let’s not forget trucks, especially long distance trucking vehicles.
• Clothing and apparel, footwear.
• Household goods such as beds and bedding, furniture, appliances, vacuum cleaners, decor, luggage, tools, and recreational equipment.
• Food: According to Fortune, 70% of our vegetables, and 40% of our fruits are imported from Mexico. Fresh food will cost consumers more at the checkout counter. A possible solution would be to establish a victory garden and grow one’s own food, or to support local farmers and, just like our ancestors, can, preserve and store food for the non-growing season.

Who is most likely to be impacted? Big box stores that maintain 40K worth of different products. These source most of their inventory from China. Since these stores are known for the relative quality of their products for the price, raising prices might cause their consumer base to turn elsewhere.

Small manufacturing businesses. American manufacturing is also its economic backbone. However, in just about every town there are small businesses that create parts that combined with parts by other manufacturers around the country, are purchased by major manufacturers for use in machinery as well as on production assembly lines. The range is varied and includes: drill presses, gauges and calibration equipment, construction equipment such as backhoes, and excavators, equipment used in materials manufacture such as extruders, and polishers, etc. These need to be manufactured and maintained and for that one needs new and used parts.

Consumers: As for consumers, economists dismiss that China will be paying for the imposed tariffs. Instead, they claim that U.S. taxpayers will foot the bill by paying higher prices for the products and services they need. Buying will become more needs-based, with far less impulse buying that accounts for a percentage of overall consumer sales. There is already a trend towards buying used clothing and accessories. Not only does it bring that designer handbag within reach, but the movement is a step towards decluttering landfills, said to be almost entirely composed of used textiles. Consumers will consider leasing their vehicles. Some who are committed to car ownership will hold on to their cars longer, and learn to bypass the dealership for OEM replacement components turning instead to secondary markets and quality used automotive parts when their vehicles need repairs.

What are the Benefits? Long term, will the tariffs increase sales for American-made goods and services? Possibly, but only if the quality can justify the spend. Also, as implied previously, due to trade agreements, many U.S. manufacturers collaborate with foreign firms to create products that are sold in the U.S. if not wholly manufactured Stateside. Will the tariffs create more jobs in the U.S.? That remains to be seen, but is a possibility, however remote at this time.

The post A Tale of Trade Tariffs: What These Sanctions Mean for U.S. Businesses and Consumers appeared first on Newton Search.

Back in the 1950s, Rachel Carson, a scientist, warned us about pollution risks to our health and to the environment in her landmark book: ‘Silent Spring’. Her work set off worldwide awareness of industrial plant waste violations, and the trickle down effect that toxic chemicals have to living organisms throughout the food chain and even our life cycles. As a result, many environmental agencies, both government-controlled and in the private sector emerged. These groups serve as both watchdogs and legislators to ensure that industries are run as green (non-polluting) as possible, and that any transgressions are swiftly identified and remediated.

Most of us have little time in our lives to become activists, however, at the same time there are many ways we can live greener lives and help ourselves and our environment. Here’s a brief list:

1. Buy second-hand clothing. You might think that paper or plastics comprise the bulk of our landfills. Nope. It is fabric. One way to reduce fiber waste is by purchasing our clothing, or partially wardrobing from brick and mortar or online thrift shops. Not only will you save money, but many of these items are unworn and with their original tags. This is also an ideal way to own a coveted luxury item such as a designer handbag without buyer’s remorse when you receive your credit card statement.
2. Speaking of paper, try to eliminate catalogs and 2nd class adverts in your mailbox by unsubscribing online. At work, troll your office printers where forgotten or outdated printouts are abandoned. Tear these into scraps and use as note paper. Save on toner by squeezing every print possible from each cartridge. When printouts are faded, remove and shake the toner cartridge then replace it in its holster. You’ll reap an additional 15% more prints using this method.
3. Many states are mandating that grocers charge for plastic bags. Accordingly, multi-use bags made from recycled materials have become a popular choice as we now bring our own bags from home. If you must purchase plastic bags, reuse them the next time you shop or repurpose them for leftovers or as a lunch bag.
4. Kill a Watt Not: Turn off the lights when you leave a room. Do not leave your TV/AC/Heat on if no one is in the room. Wear a sweater. Hang your clothes out to dry. LED bulbs. Buy them. Use them. That’s all we have to say on the matter.
5. Save water. Fewer baths, shorter showers, turning off the tap when you brush your teeth, wash clothes in cold water, use (recycled) paper dishes and plastic cutlery, etc.
6. Carpool: there are online sites across the country to help commuters get to and from work via jitney services. If you work for a large company, get to know others who live near you and save gas, wear and tear on your car, and make time spent in traffic more enjoyable. Reduced emissions are the gains here.
7. Eat less meat and dairy. Some farmers are not going to like this, but there is a movement to reduce or eliminate red meat and dairy from our diets. Arguments include the greenhouse emissions associated with raising livestock over plant crops, and the effect the animal byproducts have on our health. Don’t. Kill. The. Messenger.
8. One of the ways we can preserve our waterways and the aquifer is by responsible recreational boating practices. In fact, many lakeside communities mandate the sole use of electric boat motors for all water-going craft. Not only does this practice reduce noise pollution, but it also maintains an excellent habitat for most marine life including plant life that oxygenates our waterways. Another plus: fishermen know that a quiet-running trolling motor is ideal for sneaking up on a schools of trout, bass, and other tasty aquatic life!
9. Go to the car wash. You may think by washing your car at home that you are saving money. Not only are you being wasteful with water usage, but also car wash facilities have responsible recycling procedures in place. Also homeowners may be poisoning their own landscaping with run off from cleaning products and polishes formulated to clean and maintain your car’s finish, not your lawn.
10. Download software. Buying software online reduces packaging waste and has one very positive benefit: those seamless automatic updates!

We should have all learned from impactful events such as Chernobyl (a once, pastoral location in Russia now forever associated with a nuclear plant accident and subsequent resident health ailments) that preserving our environment is of paramount importance to ours and future generations. As stated previously, we do not have to join marches or petition our legislators to be involved in environmental preservation. Just integrate some of the practices listed into your daily life and you’ll be making an immediate contribution to keeping our planet green.

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