Thursday, April 3, 2025

Why would banks tend to fail because of Trump's Tariffs?

Let's start with Farmers selling soybeans to China.They needed the subsidies from the Government to grow these soybeans for China. Then Trump and Musk ended these Subsidies and cut them off.

Then Trump is putting a 54% tariff on all goods coming from China. Then China will do the same.

So, then these Soybean farmers in the U.S. go bankrupt and lose their farms because the subsidies that they needed to stay in business are gone and now the market in China for their soybeans is now gone because the revenge tariffs from China put these soybean farmers out of business and they lose their farms because of no income.

Will some of them survive?

Of course those in the best finanical positions might regroup and grow something else for people here in the U.S.

Many many of these farmers could lose everything and not be able to pay their loans to stay in business this year which will bankrupt them and they might have owned these farms for 100 years or more.

This will be repeated hundreds or thousands of times across the country in many different businesses and the non-payment of debts of loans to banks will likely start causing banks to fail from what Trump is doing within the next 2 years or sooner.

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