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wtf is happening with tariffs
let's talk after a day of volatile headlines
Sneha Rampalli
April 09, 2025
Hi lil bees! If you’re feeling overwhelmed by the news, doom scrolling, or just avoiding the news at all costs, know that all of these feelings are relatable.
News has become super clickbait-y and sensationalized; but frankly, it feels warranted when it feels like we’re living in an alternate universe.
There are so many headlines flying around literally in the span of today, so I thought I’d take some time to break down a few of them.
Here were some of the top stories today. Stock market, Tariffs, China, retaliation.
Something that helps me feel sane in times like this is having a baseline level of awareness, but not digging too deep to instill panic.
This is what I’ve learned, and what I’ll pass on to you:
Wtf are tariffs and what they mean for your wallet
What you can do to feel like you’re not going crazy in this economy
Table of Contents
We all rely on each other, whether you like it or not
When I wake up, I turn my alarm off, take a poo, eat a banana and drink my coffee, put on my workout clothing, and head to the gym. Electronics, bananas, and coffee.
All things that the U.S. relies on, aka imports. Yes, we may produce these things, but some of these things are just not available here.
For example, bananas need a warm & tropical climate to grow. China has a highly skilled workforce that produces miniature computers known as iPhones for our daily consumption. Let’s not forget cheaper labor. And coffee is primarily grown in the "Coffee Belt" around the equator, encompassing regions in Africa, Asia, and Latin America.
If you remember your high school economics class, you may recall comparative advantage. It’s the ability to produce a good or service at a lower cost than another producer, a key principle in economics that can lead to mutually beneficial trade.
Basically, what allows us to drink that good coffee.
TL;DR: the things we rely on in our daily life are just a small part of an extremely complex global supply chain.
Wtf are tariffs
Tariffs are taxes that countries place on imported goods.
Imagine the US government places a 10% tariff on imported Chinese televisions. This means that when a company imports a $400 TV from China, they have to pay the US government an extra $40 (10% of $400).
This leads to higher cost of goods sold (COGS) for companies, and therefore, can lead to higher prices for consumers. Feels like this restricts trade across the globe? Ding ding ding.
So why impose a tariff? Common arguments are:
Protect domestic companies
Raise government revenue
Participate in high-stakes negotiations.
Except when these high-stakes negotiations become a full-out trade war, like the headlines we’re seeing now. And these are the highest tariffs we’ve seen since 1909.
So how does this affect you
You have an iPhone or a Macbook? Yes, Apple prices will be heavily impacted by tariffs. The Wall Street Journal wrote about this and showcased a great diagram of how tariffs will impact its price.
Apple would be deeply affected by this situation, since their hardware has a deep reliance on China. I listened to the Intelligence from the Economist “Pulp Friction: the trade war bites Apple” and it sounds like Apple flew five planes full of iPhones and other products from India and China “in just three days during the final week of March. Yikes.
You may remember the signing of the CHIPS & Science Act…
Ah yes, the law signed by Biden to incentivize domestic research and manufacturing of semiconductors in the U.S. It was considered a smart move by many because it addressed supply chain vulnerabilities without flat out imposing tariffs.
And as I write this, Trump announced a 90 day pause on tariffs
But he announced plans to increase the tariffs on China to 125%. Andddd we saw the S&P 500 ETF soar $42 today once the news broke 🙂
Goes to show how it’s sometimes better to stay away from the news, the way you stay off your phone to avoid a volatile ex 🤪
Despite what happens, here’s what you can do to feel secure in this economy
I was reading Kyla Scanlon’s newsletter this morning to get the debrief on the current tariff situation. If you want a deeper dive into this, here’s the substack. But something I really wanted to bring here was what you can do to feel safe in this economy:
I’m not going to bullsh!t you and say everything is A-OK.
Governments and money move by the decisions of powerful people. Remember, people are not inherently logical but rather quite irrational and erratic beings. So anytime people say money isn’t emotional… 😈
Closing thoughts…
I wanted to do a quick shoutout for the founder of Diaspora Co., a company on a mission to build a spice trade that's equitable, climate-resilient, and undeniably delicious.
I received an email this afternoon “About the tariffs…”
I’m aware that running a mission-driven company and making money is no easy feat, especially to avoid sacrificing fair wages & consumer pricing. So I wanted to do my small part in helping spread the message to buy their spices :) This is not a sponsored message, just someone who admires a mission-driven entrepreneur.
Can confirm they’re undeniably delicious 😋
Ending on some more hilarious news…
I did learn that avocados are exempt from tariffs, protected by the US-Mexico-Canada Agreement (USMCA), for now. So I hope your chipotle bowls are not affected.
Loved this? Share it with a friend and start a conversation!
With 💛 & until the next 🐝,
Sneha
Disclaimer: this content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice. There's inherent risk involved with financial decisions and the website owner will not be held liable for decisions others make.
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