Yesterday's stock market crash in the United States caused by Trump's tariff policy led to the billionaires in the country losing $208 billion in a single day. ​​

According to reports from Taiwan Province Commercial Times, semiconductor industry insiders analyzed that while imposing tariffs on chips imported from Taiwan may have a direct impact, taxing all goods including "servers, laptops, and other end products from Taiwan" would have a significant impact.

The report pointed out that even if TSMC's chips are produced in the United States, it may still affect the industrial chain layout. Under equal tariffs, Vietnam is taxed at 46%, Thailand at 36%, Malaysia at 24%, and Indonesia at 32%. Chips assembled in the aforementioned countries and then exported to the U.S. will still face high tariffs.

Nike's market value lost nearly $10 billion in less than an hour — because Trump imposed a 46% tariff on Vietnam, where Nike has more than 450,000 workers and 130 factories. The stock fell nearly 7%, causing panic among investors.

According to NBC News, former U.S. President Ronald Reagan commented on Trump's tariffs: When someone says "let's impose tariffs on foreign imports," they seem to be doing a patriotic act by protecting American products and jobs. Sometimes this approach works in the short term, but only briefly.

In the end, the result is: First, domestic industries begin to rely on government protection such as high tariffs. They stop competing and cease the innovation and technological transformation necessary for success in the international market.

High tariffs inevitably lead to foreign retaliation, triggering fierce trade wars, resulting in higher and higher tariffs and trade barriers, and fewer and fewer competitors.

As a result, prices are artificially inflated due to subsidies for inefficiency and poor management, and people stop buying. Then the worst happens: markets shrink and collapse, businesses and industries fail, and millions of people lose their jobs.​

Original article: https://www.toutiao.com/article/7489378942185521699/

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