Let’s focus on the economics of my post
Sure, if fuel costs were the only thing to consider, maybe a reevaluation of your business model is needed. Not something I’m concerned with anymore since I no longer run any of my businesses since suffering a minor stroke a few years back.
But. If you run firms like mine that does infrastructure work, mainly stormwater protection, drainage systems, and flood mitigation. A company that runs large diesel trucks, with many pieces of equipment that are also diesel powered. Then fuel costs become a major issue. This isn't a dress shop or candle store.
There are many industries, from construction to services, that have to seriously look at what’s to come. You ever hear the motto, “if you fail to plan, you plan to fail?” That comes into play here.
If we have to pay an extra dollar-per-gallon to fill-up the tank in a dozen trucks with 50-gallon tanks, every single day, as well as all of our equipment, then that becomes a huge burden that I don’t think you are considering.
Then come the tariffs. Your typical dress shop, for example, that likely imports much of their product, can just pass the extra costs on to their customers. Simple enough to explain.
But for companies that import steel or aluminum products then the burden is absorbed by the company itself. Even worse for companies who are locked into long-term contracts (telecom, maintenance, services, etc.)
It’s something not all companies can endure for too long.
I’m giving you examples based on my experience. When meeting with other business owners in various industries that aren’t retail, they echo some of these concerns. The only differences are the products we are paying more for.
When it comes to fuel costs, our concerns are one and the same. Can we sustain thousands of extra dollars a week/month? If so, then how are we to also offer our employees incentives such as raises, paid vacation time, etc., so as to remain competitive with the big guys?
These are all valid concerns that are never part of any study or reasoning when discussing the economic impact of Trump’s fast-and-loose policy decisions. I can go into more detail, and I can expand on this some more as well, but since suffering a nasty gash on my left-hand last night that required hospitalization, typing is a little difficult. Brevity is golden right now.
I hope this offers some clarification on my where I was coming from on my original post. I appreciate the dialogue and I hope you have a wonderful Sunday.