There's a rising pushback against tariffs in the U.S.—a collective gasp from consumers who have grown fond of low prices and next-day delivery. The sentiment is usually the same: “Tariffs make things more expensive.”
To that, my new reply is simple:
“Tariffs will make the cost of things go up… if they're made in a third world country.”
And that's the point...
Tariffs are often misunderstood as a tool of nationalism or as a blunt instrument in economic warfare. But there's a deeper, more principled foundation to support them: tariffs are a modern rejection of exploitative labor. You could say, in today’s terms, they’re a reversion of slavery cloaked in economics.
Cheap goods often come from regions where labor and treatment standards are minimal, and workers are disposable. We tell ourselves it’s progress because it's not happening here—but it’s not really progress. It’s outsourcing suffering and poor treatment of others.
Consider the article published by Yahoo Finance titled:
Exclusive: Toyota weighs adding U.S. EV production, batteries under review
Toyota is contemplating whether to shift more EV and battery production to U.S. soil. Why? Because tariffs and domestic production incentives are starting to weigh into their calculus. That's good. That's exactly what tariffs are supposed to do: make it more economical to manufacture here, under fair labor laws, paying living wages.
This is not just an economic maneuver—it’s a moral one. And historically, the underlying motivation for abolishing slavery was not just compassion—it was economic modernization. Many of the “benevolent” slave owners once argued that owning slaves came at a cost. They had to feed and house them. It was a business expense, not a humanitarian gesture.
In many ways, our transition away from outright slavery wasn’t a moral awakening, but a monetary shift. And we never really escaped it. We just changed the labels.
Today, factories in developing nations serve as the new plantations. The difference? Corporations don’t have to directly feed or house the workers—they just move to wherever labor is cheapest. They export the cost and import the goods.
Tariffs challenge that dynamic. They say: “If you want access to our markets, play by fair rules. Pay people fairly. Don’t race to the bottom.”
And yes, tariffs might make some things more expensive. But maybe they were too cheap to begin with.
Michael’s Commentary: The Danger of Pricing in Perfection
As an investor, I believe in innovation—but I approach it with caution. I'm not here to argue whether electric vehicles (EVs) are the future. That debate is long over—and frankly, it's just a stupid one at this point. I usually end those conversations with a simple line:
“I understand—you’ve never owned an EV.”
As a 10+ year EV owner, trust me—I don’t miss gas stations. I don’t miss oil changes. I don’t miss mufflers, air filters, or waiting in garages. Even in our longer-range Tesla, sure, we charge more often—but come on. I can refuel in my driveway. That minor trade-off only shows up during rare long trips, and even then, charging infrastructure is growing steadily.
Convenience.
Cost savings.
Performance.
These aren't hypothetical perks—they're daily realities for EV owners.
But while EVs are here to stay, the investment risks around EV stocks—especially market leaders like Tesla, and to a growing extent Toyota—are worth discussing. These companies are priced for perfection. All the future growth, all the regulatory wins, all the technological breakthroughs—they’re already baked into the price.
If even one variable stumbles—production delays, rising competition, weakening demand—it won’t take much for a major repricing to occur. When expectations are sky-high, the fall doesn’t have to be far to be painful.
That’s the problem with investing at the top of the market:
The room for error disappears.
Anticipation becomes valuation. And when that anticipation cracks, so does the price.
Disclaimer:
This blog post is intended for informational and educational purposes only. It does not constitute investment advice, financial planning, or a recommendation to buy or sell any securities mentioned herein. The views expressed are my own as an individual investor and may not reflect broader market opinions. Investing involves risks, including the potential loss of principal. Always do your own research or consult a financial advisor before making investment decisions.
