*As we follow US tariff newsflow, remember:* ‼️ *If the US puts blanket high import tariffs on all its major suppliers, who ultimately pays this tariff?* Experts and Economic studies say- - If the increased duties are passed on in the final price of the product: *US consumers pay in terms of higher inflation* - If some part is borne by the US corporates who are importing: *Those US corporate profits take a hit and those companies reduce labour and/or investments.* Also, some inflation for US consumer” - If the tariffs are passed on and lead to fall in consumer demand: *US economy and US investors (in those companies who have international supply chains) take a hit. Exporting nation also suffers* - If these tariffs lead to trade wars: global trade slows, economies slow and inflation rises leading to *stagflation*. Only very selective tariffs or low rates, protect domestic industry, save jobs and generate income. Infact, *the recent to and fro on tariff implementation will discourage US corporates from capex as they are uncertain of future policy*. ✨