The burden of Trump's tariffs falls entirely on US consumers. We are about to witness the largest single transfer of wealth from labour to capital in US history as trade-exposed import-competing industrial companies get a 25% boost in prices on goods sold.
When Trump's blue-collar MAGA base realises he has made their lives more expensive and gifted this to business, their existing disgust and disenchantment with government will be complete and extend to the Republican Party as well.
If the rest of the world uses reason and logic and sticks to free(ish) trade with each other, this giant economic spasm will be contained to the USA and hurt only them. Imposing tit-for-tat tariffs is to stand on a land mine and should be avoided.
S32's major immediate expansion projects, Hermosa and the Arctic and Bornite JV with Trilogy, can happily proceed behind Trump's tariff wall. Its existing operations are only modestly exposed to the USA and should emerge unscathed - provided other governments are smart enough to exercise restraint.
Ash
S32 Price at posting:
$2.81 Sentiment: Buy Disclosure: Held
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