 Think tech away, civil engagement lives here. Ladies and gentlemen, welcome back to the Prince of investment coming to you guys and girls all the way live from the beautiful state of Denver, Colorado, feel the beautiful state of Haluula, Hawaii. As always, don't forget to hit the like, subscribe, comment, and share button. I truly want to say thank you for tuning in for another great episode. But as always, I don't have a lot of time, and I definitely know you guys and girls will have a lot of time, so we're going to jump straight into it. So today's video or podcast, or have you made checks this around the globe, it's going to be about what a tariff, right? We're going to talk about what a tariff, how do they work, advantages and disadvantages, how they affect you, and we also want to talk about current tariff. Because if you're going to follow anything in the news, every day you wake up, you'll be hearing about, oh, President Trump is posing a tariff, and China comes back with a tariff, and this is going on with a tariff. You've probably seen this scratching your head, a lot, you know, like many people are doing, but I kind of want to give you a basis in this video or this podcast about what a tariff and what you kind of look for, how it can affect you. So the first step, we're going to talk about what a tariff. Tariffs are essentially a tax, right? Let's draw a whole picture about why someone will use a tariff, all that stuff like that. So let's say, you know, here in America, we make T-shirts, or we make shoes, whatever you want to say that we make, let's say we make shoes, right? You go into a store, you see a pair of shoes that are made in China, they cost $100. But you may have another, you may have a pair of Nike, made in China, cost $100, or you may have a pair of Reebok that's made in America that may cost $150, right? So essentially, let's say the Nike shoes are made in China, and they ship them over here, they sell them to us, right? You know, that's what America will do, that's what America will wait. We buy a lot of things, we don't make that much. That's why we're working in a deficit call of time, right? Because we import more than we export. So, which means that we buy more than we make, we're more consumers than producers versus China, who's the leading manufacturer in the world, where they make a whole lot of things and they don't import as much. So, that's what you hear people say, hey, you're trading in a deficit, or surplus, a deficit is, right? And I'll personalize, we are spending more than we make. We're putting out more than we're bringing in, right? That's a deficit, that means, you know, you are not in a very good state, right? But anyway, the thing is, when a country sends things over here, let's say China, who's the king of manufacturers, who can have cheap labor, you know, we all see the stories, heard the stories of the labor laws in China, which are very relaxed, where people are using, you know, people are working, and I won't say a sweatshop, but they're working 12, 13-hour days, seven days a week, so they can put out a lot of things a whole lot faster and they're pretty good at it. They pretty much can copy anything, they pretty much can quote-unquote bootleg anything they want to bootleg. So, they can send things, they can get a lot of cheap labor. When you have cheap labor, you also make your product cheaper. So, for example, when you bring up, let's say if a product costs $5 a make, if it costs $5 a make with the labor cost, because you got a piece on the make-it, all that stuff like that, it may only cost you $10 a sell-it to make a product in America. But here in America, you know how we are. We like to get a whole lot by doing less. For a prime example, we barely want to work 40-hour a week in those cases. We want sick figures, we want benefits, we want holidays all, we want sick time, vacation time, all the other great stuff. I'm not playing the blame because I want it to, right? So, we like to do and make a lot. So, for a prime example, we're not going to work for pennies on a dollar, we want to make sick figures, we want to make a night salary, and we don't want to work that much time. First, you look at the labor laws in China when people, they work a lot of hours and they have low pay. So, when someone works many hours and they're low pay, then they can put out more product for cheaper. In America, we don't want to work, we don't want to work no weekend, right? We barely want to do a 40-hour week, 30-hour week verbally. So, when your production costs more, because you're going to cost more to hire me because I want 25, 30, 40 hours an hour in America, versus someone in China, they can do it for five to 10 dollars. If that, pennies on a dollar for their labor cost, so they can make that product cheaper to turn around and make a profit from. So, well, I'm going through that and kind of give you a little background of kind of how things go, right? So, here in America, it's to make our products that cost more. So, if you walk into a store and you see a pair of shoes that cost $100, versus another pair of shoes that cost $150, most people, I think shoes are probably not a good idea because shoes can have a taste, what they like, apparel, stuff like that. Let's say some plain t-shirts. Some plain t-shirts cost $150, versus a t-shirt that costs $100. I think that's a crazy price. This is just bear with me, this is just for an example. So, more people want to buy the cheaper product, right? Hey, well, these t-shirts cost $100. So, now the Chinese companies, you know, which is great for them because their companies make a lot of money. So, people don't buy as many of the American-made products because the American-made products are usually more expensive. In most cases, they're more expensive because it just costs more to make in America because of this kind of tool, especially with our labor laws, we want to do a little for a lot, right? So, it costs more to make. So, now the Chinese companies, they're doing great. They are selling a lot of products in America. The American products are not really selling that well, which means that they have to lay off some people, which means that they have to lay off some people that mean they're not hiring, that mean the company may go out of business or whatever the case can be. This is when tears come into play, right? Tears come into place because now the government can, the government can now benefit, I'm not benefit, but the government can now give domestic companies an advantage over a foreign company. So, we spoke about that story of the American company is selling this t-shirt for $150. We all know when price goes up, the demand comes down because people, it costs more. So, now, because they're going to achieve a product. So, now the government can step in and bring in what we're talking about on top of the day. Tears, they can bring in a tear. And a tear for a tear can do is it can go out and it can say, hey, if you're bringing something here from a foreign country, we're gonna charge a 15% tax, a 20% tax, right? So, now the product that China was selling here in America and they was only charging 100 bucks and they was making a nice profit. Now the government can say, hey, here's the tax if you're a foreign company selling in America. If you're a foreign company and you're selling in America, now you have to pay this tax, when a company has to pay a tax, that has to increase the price, that increase the price of productivity. Meaning that, hey, well, now I have to pay, let's break it down to some, let's say in that case the t-shirt, I was selling t-shirts for $100, so now I have to pay these import tax to America, to the government, and now I'm gonna pass that on to the consumer. So now that may take my price up to $160, right? So now my t-shirts that I was selling at $100 are now costing $160. Now the American product t-shirts that was selling for $150, now they have a competitive advantage because they can sell a little bit cheaper than China. So in most cases, people will start buying the $150 t-shirt. When people buy the $150 t-shirts, they buy more and the more they buy, that means the more they produce, the more they produce, means the more people they hire, the more people they hire, that means the more people they have jobs. When people have jobs, they spend money, now they may go to movies, they may go buy a new car, they may go buy a house, things like that to boost the economy, to get money moving, because money is made to move, it's made to be spent, it's a currency, right? A currency is made to move, that's the way that we just gotta think about it. Another person's spending is someone else's income. If nobody's spending, I don't have an income. So I need people to spend. So what people spend is that they have an income. So it kind of goes in a nice little circle of whatever it can be. So that's the way to boost the economy where they initiate tear. So that's what our tears, right? How do they work? How do they work is like you probably heard President Trump say, you know, personally, very first came out, he talked about steel and aluminum, industry, hey, you know, we want to bring back, making steel, put steel workers back to work in America. So, but America could not compete because of its prices. Plus we don't make that much. China was like the number one steel producer in the world that no one made factor in it. So to give us a competitive advantage, it put a tear on the aluminum and steel. When they put the tear on the aluminum and steel, it actually raised the price and not raise the price. It shot up the stock, all the new stocks and steel stock shot up in price. Why would they shoot up in price? They shoot up in price because of the possibility of getting new business. Now they have a competitive advantage on the market that the government has given them. So that's essentially how they work. They essentially have made to boost the economy by giving American economy a competitive advantage in the marketplace. In most cases when they feel they don't have a competitive advantage. Now with everything, you know, who's going to talk about who's the benefit? One of the biggest benefits are the government because now it's making money off of tax, right? China has to pay import tax or Australia or Europe, whatever company that a tariff is placed against, when they pay that money, it's coming to the government. So good on the government, they're making money. The second thing is just good for an American company in that industry. If I was a steel maker and now China, my competitors prices have been jacked up. Now that gives me a competitive advantage. So hey, when I have a competitive advantage, that means more profits for me. And usually when I make more profits, that means I can make more stuff and usually I would hire more people. That means a lot of American workers can now have jobs if they're working in that particular field. Also, who stands to benefit? It's usually the stock price, right? Usually when the stocks go off, usually the steel stocks go off. But people are just getting hired and the industry is starting to take a turnaround because they're making pretty good money. They can hire more people, all the great stuff like that. Those are the people to benefit. Now we're going to talk about the advantages and disadvantages. Now, we've kind of hit on a lot of the advantages. We talked about the competitive advantage. We talked about the government making more money from foreign governments. We talked about people getting more, should be getting more jobs, that American companies making more money, their stocks doing well, things like that. Because most stock prices move off with a future, a projected future. While these guys are going to make more money than usual, the prices start to increase. Now, some of the disadvantages, some of the disadvantages is that now people may just, for a prime example, which you always should already have seen with China. One of the things they said is that, oh, okay, if you want to put tariffs on us, we're going to put tariffs on you. So if you're making us pay a tariff tax to sell in your country, we're going to put a tariff tax for your company, your American companies, your domestic companies, to be able to pay a tax on us. Now it's a reverse effect. Now you put a tariff on my company. Now my companies, they don't have a competitive, now they're losing their competitive advantage in China. Now that they are, they lose their competitive advantage, that means there's less profits, when there's less profits, that means there's less people being hired, when there's people being hired, that means there's less jobs, when there's less jobs, that means there's less money, and it kind of goes on from there, right? Less jobs, less money, things like that, or whatever, right? So now people are having the issue with paying, so that's one of the big disadvantage. It turns them into like a trade war. That's the term you've always been saying. Trade war, too. That's how trade war happens. You say, hey, I'm going to charge you 20% shares on all your aluminum. You say, okay, cool, I'm going to charge you 20% shares on all your rice, right? I'm just throwing it out there. I'm not saying that's a product that we were big that we still have China, we're just hypothetical people putting it out there. So you want to hurt my companies? I'm going to hurt your company. Then someone will say, well, I'm going to hurt you more. And now my thing is, if a trade war breaks out, my personal belief of what I've known, what I've seen, my personal opinion, I think that America will win. Why? Because America spends, but America buys more than what it makes. So for a prime example, we don't produce that much. We buy everything. So if we're going to war in Sweden, we don't buy that much anyway. I mean, not that we don't buy that much. We don't make that much stuff anyway. So how much stuff is China really buying from us versus what we're buying from China? So how much stuff are we buying from China versus how much stuff they're buying from us, right? We buy a lot of stuff. We buy many things from them and they're a big manufacturer. They're a big producer. If they have to pay an export to the biggest customer versus us, I think that we might have a little leverage there. I think that's why Trump is being so boastful about, oh, every day you turn TV on, oh, a new tariff and $200 million tariff over here, $500 million tariff over here. So those are the things that kind of leads them to a trade war, to they have to sit down and have a meeting of what it is going to be. Now we're going to talk about, now we're going to talk about how do they affect me? The regular, everyday print that's cool, now that I know what tariff are, now I know what they're used for, now I know all the great stuff about them. The question is now, what does that have to do with me? How does that affect me? Now, the first way it affects you is, usually when a trade war happens, but when trade war starts going down, it drags the whole economy. For prime example, we've seen that Dow Jones has seen the major indexes. Every time these tariffs come up, they put fear to the market, stocks go down. Every time any other country rebuttals with their own tariffs, stocks go down. Because people look at, when a tariff is raised by another company, I'm going to buy another country, it's going to affect somebody's profit. Somebody got to pay that tax. That's going to come off somebody's balance sheet. So that's not a good thing. So let's say, if you hold a stock, if you work in those particular industries, let's say if I work in the steel industry and all of a sudden, now they have a tariff to benefit, they have tariffs on other, my thing is competitive. Competitor, now it can open up jobs. If I can have jobs, so your industry may start to see an update and maybe hiring a profit, but maybe you may have opportunities to move up, things like that. Another way, if you are a stockholder in a particular aluminum industry or maybe some type of commodity, whatever industry that's in question, you may see an update. You may see that the effect, you may see the uptake or downtake, depending on what's going on, the latest and greatest with the particular tariff. Because just because tariffs are announced, another country can announce tariffs on your particular company that can hurt your company's earnings, right? Because nobody wants to pay more tax. So that's a good way to gauge it as well. When you look at who's going to pay the particular tariff. Now, when you do the particular tariff, not when you do the particular tariff, when you're talking about particular tariff how it affects you, we just went over there, it's going to affect maybe a stock, employee pensions and overall stock market itself. Because it's being agreed, when someone faces a tariff, when Trump says it, sometimes the market may run up because we're like, oh, wow, our companies, American companies, now having it managed. Then when China says it, then it's like, oh, no, we don't like that because the market moves off of that. Now the fifth thing you want to get into is current tariffs. Current tariffs, I can't even keep up with the current tariffs. Every time I turn around, Trump says, oh, I want to put a tariff on this and China comes back, oh, I want to do this. Then they're like, oh, we're going to have a trade meeting. Then they have a trade meeting and they're like, oh, we're going to pull it back. And then China is saying, hey, we're going to pull it back. And then next week, just this, on Mexico and Canada and whatever the case may be, then the same thing when it happens to China. So it's just, right now, it's kind of hard to say who's going to be what. It seems like it's some type of back and forth tennis match or who's going to do what. So it's kind of hard for me to just sit there and pay attention to every single day unless I was in that industry. If I work in the steel industry, I'm going to firmly believe it. If you work at a company for five, 10, 15, 20 years, look into investment to the company that you work at because the companies that you work at try to get some stock options. If you can opt in to get stock options in the company that you're working in, try to get some stock options. So you know more about the steel industry, the aluminum industry, all the particular industries that's going on back up, both with the whole care thing. You know more about them than I do. So I don't try to like get in and out every next week really about every single thing. Stay in your realm because you work at the company every day. You know who's been hired to find who's doing land off. You know a projection of the company. You know you guys behind more people, making more things, working longer hours, getting overtime. You know those things more so than someone like me who's sitting there dealing with Colorado, nowhere in the industry that has pulled an open book and trying to read about it or newspapers and trying to read about it. You're actually in there, right? Just kind of sidebar here. It reminded me of a story of, I was doing an interview on our show and the guy was arguing with me. One more said arguing. He was disagreeing with me on something that he had read and he was telling me about something that I was, I had been through. Like what prime example imagine that someone who's never been to Wall Street, who's never been inside of a bank on Wall Street and they're telling you about a bank on Wall Street that you've been inside of that you were closer to the source. Like I don't think it works that way because I was in there. I know people there, I've met people there. I was spending time there versus someone who was like, well, I read in a book that this is what happened. You know, whatever the case may be, which could be true, but you're like, well, I'm closer to the source than you are. And that's the case with many of you. They just adjourn right there. So anyway, we spoke about it. We spoke about what are tears? How do they work? The advantages and disadvantages, how they affect you and the crazy climate right now, what tears are going through. So I hope that helps you guys out. Don't forget, I'm gonna go ahead and close this out. That's gonna conclude today's episode. Hopefully it makes more sense to you and that's just, now we see it pop up about tears. Do you know something about it? Don't forget to hit that like, subscribe, comment and share button. Thank you guys for tuning in. Until the next video, podcast, cartoon or whatever you see me do, crazy around the globe. Peace, be safe, I'm out and thank you.