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1-2-3-4, I declare a trade war

Trump's new policy signals a significant escalation in global trade tensions.

Author

Clint Betts
March 04, 2025

#1

1-2-3-4, I declare a trade war

Today, President Trump enacted a 25% tariff on imports from Canada and Mexico, while energy products such as crude oil and natural gas from Canada will face a reduced tariff of 10%. This decision followed the administration's dissatisfaction with the progress made by these countries in addressing U.S. concerns regarding fentanyl smuggling and migration. In retaliation, Canada announced tariffs on nearly $100 billion worth of U.S. goods, and Mexico signaled its intention to implement its own countermeasures. Furthermore, President Trump raised tariffs on Chinese goods by an additional 10%, building on previous duties and prompting China to announce it would take countermeasures to safeguard its interests.

The implementation of these tariffs had immediate effects on financial markets. The Dow Jones Industrial Average fell approximately 0.9%, and the S&P 500 dipped 0.6%, with economically sensitive sectors such as financials, industrials, and consumer goods facing significant declines. Companies like Citigroup, Bank of America, and JPMorgan Chase experienced marked drops in their stock prices. Investors raised concerns over potential inflationary pressures and disruptions to global supply chains, resulting in increased market volatility. The CBOE Volatility Index, commonly known as Wall Street’s “fear gauge,” rose by more than 7%, indicating heightened investor anxiety.

These developments indicate a significant escalation in global trade tensions, with the U.S. taking on a more protectionist approach. The tariffs are intended to tackle issues such as trade imbalances and national security concerns but have sparked fears of a potential trade war that could obstruct global economic growth. Industries dependent on international trade, including automotive, manufacturing, and agriculture, are preparing for increased costs and disruptions in supply chains. The long-term effects of these actions remain uncertain as businesses and governments around the world evaluate the changing trade landscape.

#2

The future of manufacturing

In the heart of Talladega, Alabama, David Heacock’s journey from the textile industry to founding Filterbuy exemplifies resilience and innovation. After witnessing the decline of local manufacturing in the 1990s, Heacock ventured into finance, where he led Goldman Sachs’ emerging market options trading. However, in 2012, familial ties brought him back to Talladega, where he acquired his family’s industrial supply business, which had been catering to the wood products sector with an aging sales force. Recognizing the unsustainable nature of competing against giants like Grainger and Amazon, Heacock sought a product that could be competitively manufactured locally and sold directly to consumers. Air filters, with their logistical complexities and numerous sizes, presented the perfect opportunity.

Under Heacock’s leadership, Filterbuy transformed into a direct-to-consumer powerhouse, offering a wide array of air filter sizes to meet diverse customer needs. By emphasizing U.S.-based manufacturing, the company not only ensured quality but also revitalized local employment. Heacock’s commitment to innovation is evident in Filterbuy’s development of a proprietary ERP system, which streamlines operations and enhances efficiency. This blend of traditional manufacturing values with modern technological advancements underscores Heacock’s vision of sustainable growth and customer-centric service.

Filterbuy’s success story reflects Heacock’s ability to adapt and innovate in the face of industry challenges. By identifying a niche market and leveraging the logistical challenges of air filter distribution, Heacock positioned Filterbuy as a leader in the industry. The company’s dedication to U.S.-based manufacturing and continuous improvement through technology exemplifies a harmonious blend of tradition and modernity, setting a benchmark for businesses aiming to thrive in competitive markets.

#3

How habits actually form

In the labyrinth of self-improvement, the idea that just 21 days is enough to establish a new habit has long been accepted as gospel. This belief originates from Dr. Maxwell Maltz, a plastic surgeon in the 1950s, who noticed that his patients needed about three weeks to adjust to their new appearances. He extended this timeframe to other life changes, suggesting that 21 days is the necessary duration for new behaviors to become routine. However, modern research contests this simplistic perspective. A study from University College London indicates that habit formation is a more complex process, with the time taken for a behavior to become automatic varying significantly—from 18 to 254 days, with an average of around 66 days.

This variability highlights the impact of factors like the complexity of the behavior, individual differences, and environmental contexts. Simple habits, such as drinking a glass of water after breakfast, may become entrenched more quickly than more challenging practices, like daily running. The journey to forming habits is neither linear nor consistent, inviting a deeper understanding of personal change. Embracing this viewpoint fosters patience and persistence, recognizing that the pathway to new habits is as unique as the habits themselves.