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Trump’s Trade War Can Wipe Out The Markets — The Tariff Domino Effect
I Voted For Trump, But I’m About to Regret.
6 min readApr 6, 2025
Should we expect a spring of hope or a winter of despair?
President Trump recently announced “reciprocal” tariffs for most countries in the world. I’m not going to discuss whether these tariffs are fair or not, but rather focus on the huge unknown impact they can have on the economy.
I’m talking about the second-order effects. The consequences of the consequences. The domino effect. The cascading disruptions that no one in Trump’s team can foresee.
But first…
What Does Trump Want to Achieve With the Tariffs?
In theory, tariffs are supposed to be good. Tariffs are a protectionist measure that aims to protect and boost American industry:
- Tariffs make it more expensive to buy products from other countries, incentivizing the buying of national products and stimulating national industry.
- Tariffs decrease trade deficits, limiting the amount of capital flowing out of the country to purchase foreign goods.
- Imposing tariffs on countries that have tariffs against the US will bring them to the…
