Permanent Irreversible Damage to the US Economy

If I could snap my fingers right now and return our tariff arrangements back to the status quo, would our economy and our markets return to normal? No they won't.

While the tariffs and markets make front page news, there are many actions by the republican administration that have inflicted incredible economic damage to the United States, damage that will take generations to repair if ever.

Canadians flock to the US at the height of winter to get out of the snow and cold. From the snowbirds who spend six months a year in our warmer climate to students coming for spring break, Canadians spent 16.4 billion in 2018 making Canada our largest source of tourism revenue. Given republican rhetoric about making Canada the 51st state, calling their Prime Minister a Governor, imposing tariffs based on misinformation and repeatedly ripping up previously signed treaties...Canada's shackles are up. While Canada may only have 10% of the population the US has. It still packs a powerful punch being the 10th largest economy in the world and having a tremendous amount of goodwill worldwide. U.S. tourism is down by 11% in 2025 with many Canadians now choosing to go to Mexico, Spain and other destinations spending money that would have previously flowed into the pockets of U.S. businesses. And it isn't only Canada, worldwide tourists are avoiding the United States as a destination seeking friendlier countries to enjoy their leisure. Countries with less guns, less violence, less racism and more acceptance for those who choose an alternative lifestyle. Tourism contributes almost 3% to the U.S. GDP and supports millions of jobs. This will decline.

In states like Florida, some estimates have put 40% of the agricultural workforce as undocumented. Republican crackdown on undocumented persons, even those who have lived in the US for decades without a criminal record have sent many immigrants into the shadows. Florida farmers now desperate for labor, turned to the government for solutions. Laws for child labor in Florida have been loosened in an effort to address this need. Teenagers 14 to 16 can now work unlimited hours to try and make up the labor shortfall. But there are concerns about exploitation and the youth will not have enough rest or time for studies. American citizens will never do these jobs for the same rate. Farmers will pass this increase along to consumers.

The republican crackdown on student visas will devastate many U.S. universities and colleges. Foreign students at Florida State for example, pay $30K per year for tuition where in state students pay $6K. There are a million international students in the U.S. providing much of a universities revenue and contributing vast amounts of money to the communities they live in. These students are now being targeted for having a political viewpoint not in line with the administration and having their visas revoked without any due process. This has put a chilling effect on foreign students enrolling in U.S. universities. In Trumps first term international student applicants dropped by 2.2% for undergraduates and 5.5% for graduate students. There has been an 11% drop in the last 12 months. China has now issued warnings to its citizens about seeking education in the U.S., China has the most U.S. international students. Where are these students going now? Countries like Canada. Canada has even seen an increase in American student applications. And these students are bringing their money with them.

As Republicans play red light green light with tariffs. Our frustrated trading partners have started to get creative creating new markets and strengthening existing relationships with each other. As I write this article, Canada signs a deal with China to provide 890K barrels a day of Canadian crude, oil that would have flowed to U.S. refineries in the south. And as China buys more oil from countries like Canada, China's purchases of U.S. oil have shriveled up from 29 million barrels a month last summer to 3 million now. 97% of Canadian oil went to the US in 2023, this will drop as Canada starts to sell more oil to China and Japan. With Canadian frustration over tariffs, the threats to its sovereignty and the feeling of betrayal from its closest friend and ally, one will expect less oil flowing from Canada to U.S. refineries. This will put upward pressure on gasoline prices. It will be very unlikely that this trend will reverse any time soon.

As the world watches the U.S. cozy up to Putin and withdrawing from agreements like Paris Climate accord. The United States no longer viewed with envy. Destroying USAID has killed an estimated 140,000 children who relied on food and medicine from the agency. Americans are being viewed as heartless and uncaring with no empathy only greed. Our reputation and goodwill severely tarnished.

According to CNBC, consumer sentiment is at 50.8, the second lowest score since 1952 when tracking began. At 34.2% lower than a year ago, we race to a self inflicted round of inflation and recession. One must ask oneself how all this could possibly be good for Americans.

Here's a thought experiment. You are a foreign agent that has infiltrated the upper levels of the U.S. government and have now become President. What would you do to bring the U.S. down? Blow up NATO perhaps. Poke a stick in the eye of your closest allies. Cause a worldwide trade war and cause the stock market to crash. Tear up existing agreements with allies. Threaten to take over sovereign nations. Tear down government establishments, upend the rule of law. Attack DEI inflaming race relations. Cutting all safety nets for the population. Weaponize the DOJ. All this starting to sound familiar????