True but I haven't seen signs of the american consumer backing away from anything. And how is the consumer backing away going to strengthen the economy?
New car prices are to high, consumers are forcing the prices lower because it's insane to borrow at 10% to make $1000 monthly payments. Consumers will find alternatives or go broke. Cut both taxes and gov't spending at the same time.
tarffs raise prices and consumers back away. But the tariffs are not demand driven. If the tariffs are higher than the natural price at the lower demand then you have inflation and lower demand. It’s called stagflation and it was the hallmark of jimmy carters presidency and it will likely be the hallmark of trumps (aside from killing 500,000 Americans with covid)
This is nonsense you learned from your left wing professors. Money in circulation + velocity of money (turnover of money) = changes in price level. The rest is nonsense to pay economists for their far from reality bs.
Lower sales except for items that you need like electricity, potash, oil, and some metals. Oh wait, you get a lot of that stuff from Canada . Oh no what we will we do if we have to delay purchasing services from the US ? And cars well some people need them or they ratchet up used car prices like during Covid. So many people spent far too much money on used cars because they had to ( the new cars weren't even in stock here except certain premium models at hiked up prices with all sorts of options attached ). Few of you have thought this through very well. Even if there was some need to address trade with China, there was never any need to disrupt trade with Canada ( and probably others like the EU as well I haven't looked into it ). Trade with Canada was a sweetheart deal for Americans contrary to the bs Trump says. The China thing was grossly mismanaged as well there just isn't any diplomacy or cooperation with a Trump administration.
There remains excess lagging demand from Covid and a few really strong years on markets. However, price inflation is going to test this. Well off people can take the heat but poor/middle class with cash flow issues are going to have to hunker down and hope the insanity ends before their cash or credit runs out. Trump of course cannot relate to any of this he inherited his wealth blew all of it then got extended massive loans and a fortunate break in TV. We'll see the worst outcomes seep in very soon. The auto sector first. Farmers next. I do worry about health care costs both sides of our border concerning products ( we are somewhat dependent on US suppliers ). Trump is going to try to cancel his programs on the fly as he sees the problems evolve. But it will be too late in some cases, the projects are already being cancelled and people laid off. Carney says if elected he'll tariff the US where it hurts the most and funnel the proceeds to help those hurt by the trade war. In general, Canada does support our lower classes well. Trump is making hints of doing the same but I'll believe it when I see it ( since when have Republicans ever helped in this regard ? ).