QUOTE(ipohps3 @ Apr 7 2025, 11:55 PM)
it will increase everywhere. nowadays supply chain is interconnected among multiple countries. cannot escape the tarrif or counter tarrif.
Indeed but some still thinks we wont kena. Well here is what ChatGPT says:
Will trump tariff affect goods prices in other countries?
ChatGPT said:
Yes, Trump's tariffs can affect the prices of goods in other countries, even though the tariffs are applied to imports into the U.S. When the U.S. imposes tariffs on goods from other countries, several things can happen that impact global prices:
Increased Prices in Other Countries: If other countries face higher tariffs on their exports to the U.S., they may raise their prices to account for the added cost of the tariff. This could affect consumers in other countries as well, especially if the goods are integral to their local economy.
Global Supply Chains: Many products are part of global supply chains, where parts or raw materials come from various countries. If tariffs are applied on these goods, it can disrupt the production processes and raise costs for manufacturers in other countries. These increased production costs might eventually be passed on to consumers in other countries.
Trade Diversion: If the U.S. raises tariffs on goods from certain countries, those countries might seek to increase exports to other markets to compensate for lost sales in the U.S. This could shift the global flow of goods and impact supply and demand in other countries, which might influence local prices.
Inflationary Effects: Countries that rely heavily on imports from the U.S. or face higher tariffs may experience inflation, as goods become more expensive due to the added tariff costs. This could lead to higher prices for consumers in those countries.
In summary, while tariffs are primarily imposed on U.S. imports, they can have ripple effects across the globe, influencing prices in other countries depending on the structure of trade, production, and consumption.