The PROOF Has Arrived: YOU and U.S. Businesses Are Paying Entirely for the Trump Tariffs
From CPI inflation earlier this week to skyrocketing producer inflation yesterday to stark proof today that foreign businesses are NOT compensating one bit for tariffs, YOU are the one getting stung!
As I work on this weekend’s Deeper Dive that goes to those who feel they get enough out of my work that they support me by paying for what they get, I’m going to give everyone a few headlines and videos today and take this opportunity to point out two articles that are also about the impact of tariffs. One is practically hilarious, while the other provides solid proof that Donald Trump and all his team were lying through their teeth when they said the nations whose products Trump is tariffing are paying the tariffs.
Both stories are really about people being duped by the Don on things they should have known better than to believe. The first story in MarketWatch came with a headline that I share below just for what it tells you from this very pro-stock site, even though the story cannot be accessed without a subscription. MarketWatch says “Investors were blindsided by July’s hot PPI inflation reading” or, as I called it “a summer scorcher.” In other words, duped. They were duped by their own greed, which enabled them to be easily led along by President Trump’s lie that tariffs will not and are not causing inflation. Most people believe what they want to believe.
What a laugh! How on earth could investors possibly be blindsided by something so obvious? The sting of tariffs through soaring inflation could be seen coming—if you read in the right places and use your own common sense—for the entire year! It just wasn’t seen by those who don’t want to see it either because 1) they want to keep gambling on stocks and making the big bucks and seek to feed a narrative that says those dream plays will keep working for them or 2) because they desperately want to believe in President Trump, which is understandable since Biden was no picnic for many of us (firing me as he did for not getting a vaccine and then sharply censoring many of my articles every time I turned around), sounding like a mumbling and clown the whole time.
The simple truth is investors believed the lie because they wanted to. Hopefully no one reading The Daily Doom has believed the lie, as I’ve done my best to dissuade everyone. I’ve given numerous explanations and dug deep into the numbers to show how it is not true that other nations will pay Trump’s tariffs and how the tariffs will impact you so you can prepare for the price hikes and possible shortages to come from tariffs. It is not even in the least bit true, and believing it may cost our nation just about everything as the economic collapse I’ve been writing about gains momentum under the destruction of tariffs and a president blindly stomping us into the dust of our own defeat. (And we had strong clues from the history of the 30s as to how destructive those tariffs can be.)
The next headline I’m going to cover here proves the lie in clear terms with solid evidence. There is only one way that other nations can pay US tariffs—since the US government has no power to tax anyone (or any business) who is not a US citizen who lives and runs his or her business outside this nation—and that is if businesses in other nations lower the prices of their products and services by enough to compensate completely for the tariff that will be added to those prices when the product enters the US. That way, they’ve absorbed the cost in advance of shipment to where American businesses and consumers pay no more after the tariff gets added than they have been paying all along.
The truth about tariffs—who pays—is in
Today, we learned what people who are selling products and services into the US are charging. The truth has been out there, but I haven’t published anything on it until now because we needed to wait long enough to know we have a solid collection of evidence from a sufficient time period under tariffs.
NOW we are enough months into this chaotic mess that we have just seen that US producer prices are rising substantially as products and services are sold by warehouses that import from outside the country to US retailers and as foreign services are sold to US businesses that provide direct services to individual US consumers. Those rises in the prices that businesses are charging at the wholesale level gave us a strong hint, as I pointed out yesterday, that the US producer’s own costs must have been rising due to the tariffs that are getting added to the prices of the goods they import and services they outsource to other nations, forcing them to raise their prices A LOT. Today, we got proof of what is happening.
Though import prices do not include tariffs, the elevated readings suggested exporting nations are not cutting prices to offset the impact of higher costs from duties on consumers.
In the 12 months through July, import prices slipped 0.2% after falling 0.5% in June.
In other words, there was, year-on-year, a half a percent price drop in June, which, when measured again year-on-year in July, has gone back up enough that the YoY price drop in July is only 0.2%. There was, in other words, initially a minuscule move down of half a percent by foreign producers to reduce prices as US businesses negotiated with them but far less of a move than what the tariffs cost. You can be sure US businesses negotiated as hard as they could, as many like Walmart told you they would, in order to keep their own prices down; but already foreign producers are less willing to make any deductions in their regular pricing so are budging even less than they did in June (only 0.2% below that they charged a year ago).
Producer price data on Thursday showed a surge in goods prices excluding the volatile food and energy components, bolstering economists expectations that consumer inflation would accelerate in the months ahead, despite what has so far been a moderate tariff pass-through….
Making things even worse in terms of the metrics the Fed looks at when making its interest-rate decisions…
Core import prices eased 0.1% in June. In the 12 months through July, they increased 0.8%.
Rather than dropping back down, they are actually rising, as of July.
Prices for imported consumer goods excluding motor vehicles increased 0.4% last month after edging up 0.1% in June.
Those are the month-on-month figures in case you were wondering. So, up a tad in June, up more in July. Foreign businesses, in net terms, are not only not negotiating their prices down but are continuing to increase their prices at a faster rate to compensate themselves for the falling value of the US dollar, which has plunged:
That partly reflects dollar weakness against the currencies of the United States' main trade partners. The trade-weighted dollar is down about 6.7% this year.
OutSorosed by Trump
That looks like this:
Not a pretty picture for the value of the global currency. We’re talking foreign-exchange value, which is different than its domestic purchasing power, measured by inflation, though that will be following the same trend now that inflation, due to tariffs, is starting to price through to the consumer, as my CPI analysis in the upcoming Deeper Dive will show to be the actual truth.
We’ve gone from a strong dollar coming out of the Biden years, where the dollar had actually been rising since the start of October, to a sharply declining value. (Good, I suppose for the Trump family crypto.)
The U.S. dollar has been through some rough waters lately. It’s been rocking a decline, with the Dollar Index dropping 11% in 2025—its worst start since 1973. So, what does that mean for stablecoins, which are designed to be pegged to the dollar?
For many, stablecoins are starting to look less like a niche and more like a necessary tool. As the dollar takes a hit, it seems that stablecoins are emerging as a go-to solution for international transactions.
In countries where currencies aren't the most reliable, stablecoins act as a dependable means for storing and moving money. This utility is especially crucial for the areas of cross-border payments and remittances, where local currencies can swing wildly or inflate rapidly. When the dollar is on a downward trend, using dollar-pegged stablecoins may gain traction as they offer easier access to dollar-denominated assets.
Almost sounds like a plan, doesn’t it? Bring down the value of the dollar and start your own family of stablecoins at the same time; use the power of the president and US Treasury to sell them far and wide to the world’s biggest billionaires who gain special access to elaborate dinner parties with the president if they buy a million dollars worth of the family coins in order to cement their launch firmly in place; then keep bringing down the value the dollar with tariffs. It’s so Sorosesque. Good gig if you can get it.
Of course, if it all goes haywire (and how could that happen with Trump running it because that would be as unlikely as one of his casinos or building projects going bankrupt), then millions of US citizens may lose all they’ve put into the family money and maybe, being attached to the dollar in such huge quantities, they might crash the dollar, too. I’m sure the plan is, however, that, as the dollar goes down, $TrumpCoin and MelaniaMoney go up.
At any rate, the dollar has gone down, down DOWN, while $Trump crypto has shot to the moon with far less wreckage than any of Elon’s erectiley dysfunctional rockets, and, YES, you are paying for the tariffs that are the primary driver of damage to the global currency (because, as I’ve said repeatedly, who needs a US-based global currency when there is no global trade with the US)!
Producers in other nations are not only NOT lowering their prices in order to pay for the tariffs ahead of shipment, but they are raising them to compensate for the falling dollar, which is falling on foreign exchanges because far fewer will be needed as global trade with the US dies down.
Predictions of The Daily Doom for 2025 land squarely on target and on schedule
So, there you have it, the full picture is now playing out exactly as I mapped it in advance for all of my supporters in those Deeper Dives at the start of the year, before Donald $Trump was even sworn in as the new national digital currency owner and US president. Every bit of it—the rise in inflation, seen, as I laid out yesterday for everyone, particularly in producer prices, but starting to trickle into CPI, too, if you look below the hood as I do in my Deeper Dive; the pass-through of tariffs; and even the takedown of the dollar—all of it is now firmly in play.
Still to come are the repeat of the stock-market crash that nearly came through in the spring of this year until Trump started his TACO madness and breathed oxygen back into the suffocating market. That will likely resume as investors realize the whole “other-nations-pay-the-tariffs” narrative was a delusion, not a truth—unless, of course, AI has so completed the rigging of the stock market through algorithms, that the AIs can jockey the prices forever (but who knows if they even want to or would ultimately rather crash everyone into states of dependency). That’s a whole realm where one can go wild with speculation, so I’ll stop there for now. Suffice it to say, stocks are likely to resume their predicted 2025 crash, and recession already hit in the first quarter of 2025, but got a temporary reprieve in GDP, as I said in advance we’d see, due to front-running of tariffs that is now mostly done and gone.
Because I wound up covering PPI fairly extensively for everyone yesterday, I won’t be saying as much about that in my Deeper Dive where I was planning to cover it for paying subscribers only. That means, because I cannot afford to give absolutely everything away, I’m reserving the full Deeper Dive for my paying subscribers. So, they’ll get the coverage of CPI as their special bonus in order to see how it is actually cracking open with signs of those producer prices that we now know are rising.
It was important that I share the main thrust of all of this with everyone so that everyone knows I am not out here hating on Trump and because this all brings a considerable number of this year’s predictions into fulfillment—at least in showing that they are all clearly happening, though they have a lot more collapse still coming. These are real moves that are going to impact you whether you believe me or not, and I am compelled by everything that drives me to make the truth known to as many as possible, especially when I know the entire presidential team is either 1)incredibly stupid, or 2) deviously lying through their teeth due to their own self-interest because clearly other nations are NOT paying for the Trump Tariffs.
This week has been the first proving ground for the major predictions I made for 2025 at the start of the year, and it has arrived right when I warned you it would. So, thank you to those who have supported this hard-edged writing that pulls no punches (and I was always just as hard on Biden when he was clearly demented and shaking hands with the curtains while calling out to the dead). You supported my writing through the months when it was not yet clear how things were playing out and hung in there with me as we waited for the timing I had given. I am, as I bill myself, an equal-opportunity critic who cares only about making sure you have access to the truth and good warnings about what is coming with no care at all about what politician has to take the heat. I am no longer fond of either party. I gave up on them long ago.
Fortunately, many of you have stayed with me, even those who are Trump supporters. So, thank you for that, and I hope many others will follow suit if you’ve found the editorials I give provide you with truthful content, even if it is a bit tough to listen to. We are all better off if we take reality straight on as it comes and deal with it. So, there is no varnish here. It is all hard-hitting.
The weekend Deeper Dive for my supporters will provide substantial analysis of what really happened in CPI, possibly dig a little deeper into PPI, though I wound up actually covering that for everyone for free yesterday (a little off from plan, but it came in SO hot that I just had to adjust the plan), and it will pull in some of the other extraneous stories from this week that didn’t get covered in editorials but that round out the inflation picture.
Now, here are some headlines for everyone as I get back to writing that Deeper Dive:
You can also gain free months of a full subscription if you successfully refer a few friends here who become subscribers:
Economania (national & global economic collapse plus market news)
Investors were blindsided by July’s hot PPI inflation reading. Why stocks mostly shrugged it off. (Placed just for its headline.)
Amazon Will Be 100% Robotic by 2030
Desperate Apple Plans AI Robots, Smarter Siri and Home Devices in Bid to Regain Momentum
Real Estate Rubble (housing, commercial & global real-estate bubble trouble)
Money Matters (monetary policy, metals, cryptos, currency wars & going cashless)
How is the Weakening Dollar Impacting Stablecoins?
Fed’s Goolsbee sees ‘note of unease’ as central bank looks to next interest rate move
Inflation Factors (from too much money chasing too few goods due to weather, sanctions, tariffs, quarantines, etc.)
US import prices rebound in July on higher consumer goods costs
Wars & Rumors of War, Revolts, Hacks & Cyberattacks + AI threats
How Putin, ex-KGB officer, will seek to sway Trump at Alaska summit
Nothing is off the table as Trump and Putin set to meet
Political Pandemonium & Social Senescence (socio-political issues & events)
Five People Angling to Get Rich Off Trump’s ICE Detention Plans
Trump claims credit for fixing Social Security as it barrels to insolvency
Trump rolls back environmental rules on rockets
Calamity, Catastrophe & Climate Craziness
Why a landmark climate ruling from the world’s top court puts financial markets on notice
Doomer Humor
I shared the below message with David via email, and he very kindly said sharing my own personal testimonial in the 'hot-air boom / fundementals bust' economy may be be helpful for others, insofar as knowing they're not alone. I'll paste the full text below:
What we're feeling, seeing and experiencing on the ground is being swept under the rug elsewhere. There's a fog of narcissistic optimism in these times. Somehow, everything is fine despite every testimonial on how it is far from fine. And it's as sickening as it is upsetting. We have no voice left to us. And I thank you for being a voice which shows our experience is real. No matter the choreographed make-believe presented elsewhere, no matter the "alternative facts" or face value statistics, you show how what we're feeling is actually what is going on. I cannot stress how much it helps, amid a culture which often says "you just didn't work hard enough", to have someone validate that we are having a rough time right now.
In the real world, we're being squeezed by pressures so petty, reckless and extraordinary that it makes me sick. And we just have to suffer through it for however long it will last. The people we rely on to make it better are those that are making it worse. More than that, they're saying they're making it better and everyone else is the problem.
I was raised to believe if you worked hard you eventually succeeded, and the things you really needed would always be in reach. There will be hard times, but you can be smart, hard working, respectful and responsible and you'll make it in America. That doesn't feel true anymore.
I'm a man fast approaching middle age, and I've lost my hope in it getting better. To be honest, I've also been struggling through a crisis of faith in God, given the world as it is right now. I'm sad to say that. I have a stable middle class job with (what used to be) reasonable pay. I have a savings account with a decent amount I saved, which I am now borrowing from steadily to make it through the year. I have decent insurance. I have a car, which was luckily paid off before this all happened. That was the dream in America. I should be fine, and I'm far from it.
My rent has gone up twice just this year. It's now half of my monthly paycheck. The rest is taken up with groceries, utilities, etc. My pay went up $0.80 per hour while everything else went up far more than that could ever hope to cover. I've cut back and cut out everything I can. We're very much on the edge of being able to afford a normal life. I don't know if we can make it through another price increase, an emergency, an unexpected job loss or accident or bill.
Anything more than that feels like a pipe dream. I used to believe in America, if I worked hard and did the right things, I could get a house for my family, send my kids to a good college, and prosper. The clock is ticking away on that even starting, and precious time feels like it has gone away and it may be too late. Those hopes may just be in the past.
We've held off on getting a house. We can't afford it. We can't risk paying a mortgage, or risk having to move if we lose or have to change jobs. So we're stuck in the renting-cycle trying to save what we can. We've held off on having kids. We were going to try in the next few years but we couldn't afford them either. And honestly, I don't feel morally right bringing a child into the world as it is now. I feel like they'll have a worse life than I did. More shamefully, they'll struggle to regain what we let slip away. I couldn't burden them with that. We can't afford a second car because we couldn't afford the payments. We need one because we both work, but there's not a snowball's chance we can afford one. We've lost the ability to afford not only luxuries, but emergency needs and things we could invest in to grow. So we're stuck here in second gear, working towards nothing but staying in place.
It's like climbing up a mountain while flood water is rising, being settled on dry land for a bit and thinking this is finally over and now we can settle down and grow. And then having to climb up again because the water keeps rising. And at the top you found all the people responsible for the flood in the first place, and there's no standing room for you.
I feel like people are waiting for things to get better, and maybe that's why stocks go up despite economic warning signs, and why we keep following tinfoil messiahs looking for an answer. It's dire, and we all made it dire. We did so by pretending it's not. I know I'm waiting for it to get better.
The world's gotten needlessly uglier, and you - even in being pessimistic - are a light in that by saying the truth. If we have people care that it's bad, maybe someone will care enough to make it better. When people pretend things are ok, people like myself are ignored. But you see us.
They brought in Bessent'( soros) to kill the dollar, collapse the economy and create the chaos needed to implement the stable coin dystopia