The idea of bringing all manufacturing back to the USA is both laudable and laughable at the same time. It would make so much more sense to identify products, mainly made in China and Taiwan, that impact national security, and bring them back to this country first. I think the Chips Act was intended to start that process and several large semiconductor companies have already announced their intentions to build manufacturing facilities in the US. Frankly I’d rather we concentrate on chips and not worry too much about where blue jeans are made.
bobd, my reply was not aimed at you but at the group as a whole. Folks are still crying about tariffs that are at 50% or less than those imposed upon us. I would have replied sooner but I was OUT FLYING MY CESSNA-180K. Something a lot of the pundits on this site should try instead of whining about the current administration.
Oh, and, though retired, I’m not hurting as raf wants to apply to all of us.
Why “I’m Fine” Isn’t the Full Picture
A quick but important point for those saying, “I’m not hurting”: Let’s say tariffs raise costs by 10 percent. That’s not where the impact ends. Businesses don’t just absorb that cost. They add their usual markup, maybe 30, 40 percent or more, and every step in the supply chain does the same. So a 10 percent tariff at the port can turn into a 20 to 60 percent price increase by the time it hits the shelf.
For people living on fixed incomes, that hits even harder. And yes, there’s COLA, but it moves slowly, comes later, and is based on broad averages. It often misses the sharper price spikes in food, energy, and everyday essentials. So even those who get adjustments are still falling behind.
If you’re not feeling it yet, that’s good, enjoy the ride, but it’s not proof the policy is working. It’s just your distance from the blast radiu$.
Now add this, we’re not just talking about people on the margins sounding the alarm. The CEOs of JPMorgan, BlackRock, Pershing Square, and even Stanley Druckenmiller are publicly warning that these tariffs are reckless, inflationary, and risking a full-blown recession.
They’re not liberals or internet pundits, hey’re the backbone of U.S. capital markets. When people like Jamie Dimon, Larry Fink, and Bill Ackman break ranks and speak out, it’s because the policy is doing damage even they can’t hedge away from.
And if Mr. T continues to ignore it that doesn’t mean the policy is “tough” or “working.” It just means the blast radius hasn’t reached your side of the runway yet.
UPDATE: By the numbers.
What the April 2025 Tariffs Are Doing to U.S. Airlines
1.- On April 2, 2025–T Day–the White House slapped a 10% tariff on all imports. No exemptions, no ramp-up. For the airline industry, it hit like a crosswind on short final.
2.- Within hours, costs started climbing, stocks started wobbling, and folks began rethinking those big international summer plans.
3.- By T+6 (April 8), every major U.S. carrier has felt the heat:
- Delta, United, and American got hammered—earnings cut, international bookings down.
- Alaska and Southwest? Mostly domestic, but even they’re watching costs spike.
- JetBlue and Hawaiian? Caught between fuel, labor, and long-haul demand drop-offs.
- Spirit and Frontier? Low-cost flyers are already flinching at fare hikes.
4.- Then came the kicker: no more duty-free aircraft parts. That’s maintenance budgets blown, timelines thrown off, and parts supply chains jammed up.
5.- Boeing’s stock dropped hard. Howmet, a major supplier, sent up warning flares. Airlines are now redrawing summer routes, cutting fat, and bracing for impact.
6.- And passengers? They’re watching. “Cancel international trip” became a top Google search. Domestic travel searches are up—but uncertainty is higher.
7.- No policy relief in sight. Fuel’s up. Parts are up. Labor’s tight. And the industry? Running leaner than it has in years.
8.- We’re not just flying into headwinds—we’re already at low power, with rising temps and nowhere to climb.
9.- Status of the U.S. Airline Industry: BAD.
We might get an opportunity to reduce our debt, if, that is, our economy isn’t ruined by a reckless and half-baked trade “policy.”
Thanks, Raf. Appreciate all the research and updated info. Wasn’t sure how duty-free parts would be affected but seems at least by 10% then, maybe more.
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