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This episode is brought to you by State Farm. You might say all kinds of stuff when things go wrong, but these are the words you really need to remember. Like a good neighbor, State Farm is there. They've got options to fit your unique insurance needs, meaning you can talk to your agent to choose the coverage you need, have coverage options to protect the things you value most, file a claim right on the State Farm mobile app, and even reach a real person when you need to talk to someone. Like a good neighbor, State Farm is there.
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Welcome to the Candy Valentino show, the podcast for founders, investors and entrepreneurs where we have honest conversations about what it takes to grow your business, build more wealth, and create financial freedom.
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Hey guys, welcome back to the show. I'm Candy Valentino and thanks for tuning in with me today. As we talk about top headlines, tariffs and the economic shifts that are happening, we're going to explain them, break them all down and tell you what it is that you can do. There are so many headlines out there, so much fear, so much clickbait. So I want to dive into all of these big stories as they apply to your business and your bottom line. We're going to talk about egg prices, inflation, massive investments in the US as well as the topic that's on everyone's minds, the tariffs. First things first. These egg prices, we have seen them drop. The US Department of Agriculture has introduced a new strategy to curb these egg prices even further. And let me tell you, eggs have become the poster child for inflation. Every single media interview that I do talking about inflation, the economy, investing, everyone's asking about eggs. If you've heard me talk about them on the show before, it has really very, very little to do with inflation. It's this isolated incident that happened because of the bird flu and the killing of 166 million chickens. Egg prices have increased 237% in just the last few years. And just a few days ago, the US announced that they are going to invest $1 billion into combating the bird flu and into helping farmers and driving down the overall cost of eggs. So although the whole five point strategy that was put out by the USDA is not going to fix the problem overnight, it has stopped going up and we're pretty confident that we're going to see it overall stabilize the market over the next three to six months. So this is in the works. All right, moving on. We want to talk about inflation. Inflation just came in. The report for February saw the lowest inflation rate in nearly four years. This came in lower than expected. Not Only was Wall Street's consensus and the previous month level beat. This came in lower than both and really is showing that relief help is on the way for consumers and businesses as so many people are really worried about how these tariffs are going to affect inflation. Now typically when a great inflation report comes out like this, the market responds positively. However, there is so much uncertainty in the market right now because of the tariffs that we didn't get to see the bounce, the bump, the increase that we had all hoped for. However, because there's so much negativity out there, I want to make sure that we just talk about the importance of this inflation report and the jobs report that came out back to back. This is so critical for long term stability that I wanna make sure that we're focusing on the good things too. Inflation is declining, the economy is moving in the right direction. And with companies like Merrick and GE Aerospace announcing big investments into the US for example, GE Aerospace is investing nearly a billion dollars in US manufacturing, claiming that they're going to hire around 5,000 workers in manufacturing and in engineering. And as if that's not enough, Apple talks about a historic $500 billion investment in U.S. manufacturing. Yes, you heard that right. They are very bullish on the future. And there's, that's just two companies. I mean there are so many others that are really bringing back jobs to the U.S. apple alone is talking about 20,000 new employees. And we've got companies like Softbank and Meta also committed to investing in the US So I wanted to talk about all of that to tee up. What I really want the episode to be about today because you're going to hear so much doom and gloom, you're going to hear so much uncertainty. And if you're watching your 401k or your investments, you're seeing them go down, go down, go two steps down before we get any little bit back pulled back up. So I want to make sure that we talk about the reality of what's happening and I want to share why there is so much instability right now and how to reframe perhaps the way that you look at tariffs because they are in the headlines and depending on who you listen to, they're either a brilliant move to protect Americans and our workers and our middle class, or it's a disaster. So I want to break it all down. And here's the deal. I'm not going to shy away from conversations and topics that need to be talked about just because somebody is somehow going to be offended. I don't care who you voted for, and I don't care who's in the White House. These topics are critically important. If you want to grow your business, if you want to build a business, if you want to start a business, if you want to just build your own personal net worth, if you want to make more money, if you want to create generational wealth, if you want to invest in a real estate project, whatever it is, these conversations matter. Politics, the government, our current administration, the policies, not the person, all of those things matter. And so I know when I do a topic like this, people think, oh, she's one way or another. No, I am pro America, I am pro business, I am pro entrepreneur. That's what. And I'm pro information. I'm passionate about giving you the information so that you can make intelligent decisions about what it is that you want to do, what you want to invest in, and also to stop and maybe minimize suffering a little bit. Oftentimes, people get so caught up in the worry of what's going on that if we don't talk about it, sometimes people can spin out with a level of anxiety because they're just so unsure and they're listening to sound bites or clickbait. And so I want to talk about the real story, what's going on. These tariffs are back in the headlines, so we want to break them all down. We're seeing a complete shift in economic policy that we haven't seen in a very, very long time. And really, we haven't even seen in the Republican Party for a really long time. I mean, traditionally, the Republican Party was built on social conservatism, foreign intervention in war, free trade, free market. And we're seeing an administration that has literally taken an ax to all of that. We're seeing these policies coming out as anti war, anti free trade, and really prioritiz economic nationalism over globalism. And so it's really a case of protecting the U.S. you know, and if you look back, you know, a lot of people are saying, like, why tariffs? It's wrecking the the markets. Like, you know, 401ks are down. And I want to get into all of that because it's a really important question. And I think the better you understand it, the better you're going to be able to ask better questions, make better decisions. Here's the thing. You the US lost about 5 million manufacturing jobs over the last couple decades due to all of the outsourcing to China and Mexico, who have lower wages, who don't care for their workers, the employees of those companies and they have free trade policies. What tariffs are going to do, it's aiming to level the playing field to make American made goods jobs more competitive in the global market. Because what we were basically set up for was a race to the bottom, China's advantage. Why is everything made in China? It's because of the ultra low wages. There's no labor protection, it's state controlled industries and the US can't compete on that, specifically costs. So tariffs are going to force companies to reconsider where they produce goods. And we're seeing it already just like I talked about in the beginning of the show. We're seeing these massive big companies, Billion, billion Apple, probably trillion dollar company at this point is going to be bringing back jobs into the US and if you ever look back into history, in the 1970s, the middle class economy was massive. 25% of the US economy was all manufacturing. Today when you look at the economy, it's dominated by finance in real estate, which has left the working class literally downward in a spiral. And tariffs are attempting to revers to bring back manufacturing jobs and companies to US soil. And it's not just for the economy and for commerce, it's really for our national security. You know, it's crazy to think about that there are five industries that the National Security Administration Council has said that we need to do these five things in our country not to be dependent on other global markets in order to produce them. God forbid we ever get into a war with them. The manufacturing sector is critical for national security and defense. And it's industries like pharmaceuticals to avoid dependency on foreign manufacturing. It's things like lumber, which is critical for our housing and our infrastructure. Things like steel and aluminum for defense, for weapons, for manufacturing. So when you see tariffs that are raising the costs of Chinese steel, it makes American steel more competitive. And the fourth component is technology. That's the other industry. If the US wants to remain a global superpower, it cannot afford to lag behind in these key industries. You know, technology, that's artificial intelligence, that's quantum computing, that's bioscience, that's semiconductors. You know, right now the US heavily relies on Taiwan for semiconductors. And if Taiwan is invaded, the US could actually lose access to the chips that we need to power everything from our phones to fighter jets. So when America places tariffs on Chinese technology imports, it's part of a larger strategy to prevent the US from falling behind in the tech race. Because this isn't just about jobs, this is also about national security and ensuring that America controls the Industries that will shape our future for generations to come. So when we look at why everything has just been dominated by China and the global manufacturing market, the answer is really simple. They exploit their workforce and they play the long game. Chinese factory workers earn a fraction of the US wages. They don't have any environmental regulations. Factories cut costs significantly by ignoring any pollution controls. And their government subsidies are crazy. The Chinese government directly funds industry to crush foreign competition. So if China wants to do all of those things and have access to our market of customers, well then they're going to have to pay for that. And if they can't compete with the tariffs, well, it's going to create a more level playing field so that US production becomes more viable. The United States became a country of consumption. Literally all of our people are just consuming products from other countries and we're not producing. We need to be creating and producers and builders and distributors. That's what's going to take back our country so that we don't have to rely on other countries for our independence. Now I share all of that. To say can it work? Yes, will it work? Well, that's the big debate and I'm going to share both sides. Just very straightforward so you can make your own decision and we can all see this play out together. But the argument against tariffs is this, that they raise prices for the consumers, that they will increase tensions with our allies and it could spark retaliation. Meaning China might restrict exports of say earth minerals or something that is essential for us to manufacture our tech. Maybe Europe is considering, as they are already considering counterterroriffs. Companies pass these higher costs onto buyers and now it increases inflation and Americans are spending more money for the same thing. Those are all the arguments against tariffs. But the arguments for tariffs is it is going to be short term pain, long term gain because they will create American jobs, strengthen national security, they will reduce resilience on foreign governments supply chains and can prevent economic blackmail down the road. They will force businesses to invest in production in the US rather than just chasing cheap labor the whole way down to the bottom. The truth is we won't really know the full impact anytime soon. This is probably going to be a year or years. But this idea that free trade, that America gets the short end of the stick in all of these deals is over. We are now living in a world where economic nationalism, protecting the American worker, the American people, is becoming dominant again. It's going back to those 1970s when jobs paid well and benefits were strong and you could have a single income family and that household could still afford the American dream, while maybe mom stayed at home. And you may not want that. That may not be your dream. That's not what I'm saying. I'm just saying that it would be nice to have a situation where that's possible for someone if they wanted it. So don't get caught up in semantics. I want you to really hear the point of this podcast episode today. This is something that we are going to hear over and over again. For years, tariffs, which basically were kind of eradicated. External taxes, if you will, they're kind of year after year after year went away from 1913, when really America, all of our money came from tariffs and taxes. Not taxes from our own people, not internal revenue, but external revenue. The IRS stands for internal revenue. Well, prior to the 1900s, it was external revenue. And so we're getting back to that. And I also think that what we haven't quite heard yet, there's been some rustling about it, but we haven't heard anything concrete yet, is this is all to set the stage to not only extend the 2017 tax cuts and Job act, but also to revamp the entire way that we all pay taxes. And if you want to see the economy booming like the 1990s, holy cow. If we can implement the tariffs in a. In a smart way, if we can bring back American jobs and have us investment like we've already seen, but 10x that, if we can do those things and we can completely overhaul the tax system, the tax code, and make it simpler for workers, oh, my gosh. Interest rates will fall, the economy will boom, and everyone will have the ability to decide where to invest, how much to work, and where they want to take vacations. But in order to get a completely new result, we need to make some tough changes and some tough choices. And that's what's going on right now. That's what the market doesn't like right now. The markets like predictability. It likes certainty, and it likes sameness. And what is happening right now is not just about trade. It is literally a fundamental shift in economic policy that will, if successful, reshape America's place in the global economy. Now for you to decide whether you support them or not, one reality is true. Our economy is undergoing a massive shift. And the decisions that we make today will also determine who wins or loses in this season. So I want to talk about quickly what these changes mean to you as a business owner or an investor or an entrepreneur, and what actionable steps you can take right now to our show is made possible because of incredible sponsors and I am beyond honored that we have such a prestigious sponsor like Range Rover. Range Rover Sport is a symbol of high adrenaline and high achievement where dramatic design meets distinctive sporting character. It truly redefines sporting luxury and it's no surprise that I have had six of them throughout my life. Features like active noise cancellation that filters out unwanted sound makes the cabin of your Range Rover Sport a sanctuary and the cocoon like interior is like nothing I've ever experienced, providing you with an engaging and supportive journey. I love them. I drive them and now you can too. Build your Range Rover Sport@range Rover.com USSport hey guys, our show is made possible because of our sponsors. Without our sponsors we would not be able to keep this show free for everyone who listens. And this is a message from one of our sponsors. Intuit TurboTax. You know taxes was dealing with piles of paperwork and frustrating forms and then waiting and wondering and worrying if you were going to get any money back. Now taxes is easily uploading your forms to a turbo tax expert who's matched to your unique tax situation. An expert who's backed by the latest technology which cross checks millions of points for 100% accuracy. While they work on your taxes, you get real time updates on their progress and you get the most money back guaranteed. All while you go about your day. No stressing, no worrying, no waiting. Now this is taxes intuit turbotax get an expert now on turbotax.com only available with TurboTax live full service real time updates only in iOS mobile app. See guaranteed details@turbotax.com guarantees stay ahead. All right, so we covered what exactly this is all about. The big debate of will it work. But the important part we got to get into now. What does this mean for you and what are some of the steps that you should be taking right now to navigate some of these economic shifts? Well, number one, if you are an entrepreneur, make sure that you are assessing your supply chain and your cost structure. If your business relies on materials, equipment or inventory from China, Mexico or even the eu, you need a plan. Some businesses are going to absorb any of these extra costs. Some will pass them on to the consumer. You have to decide what works for you and your business model. But either way, you want to have visibility on all of your numbers. Review your supply chain, look at where your materials and your products come from, call and negotiate with your suppliers. Can you secure better pricing or find alternate sources? You would be shocked how many times just picking up the phone you can negotiate a better deal. Can you stock up if you know that tariffs are going to hit in the next coming months from one of your suppliers? Can you buy now at a lower price, stock up and ultimately save thousands? And last, but should be first, can you explore US alternatives if the tariffs remain long term, can you partner with a US manufacturer? That may be the best move. And I'll give you an example. Tesla just moved its battery production in house to reduce the dependence on Chinese imports. So if you are in an industry or you have materials that could be heavily impacted by tariffs, let's consider vertical integration or even domestic sourcing. 2. Adjust pricing strategies and make sure to protect your margins. If your business will be affected or can be affected by tariffs, you want to decide how to handle the price increases. If raising prices are going to hurt your overall sales, you want to make sure that you look at your strategy. Here's an idea. You can use tiered pricing instead of just one big price hike. Consider gradual increases so that you minimize customer pushback. Another could be bundling products and services. Again, it'll increase the perceived value without drastically raising costs or raising pushback. You can introduce loyalty incentives if your customers know that these prices are coming. Reward long term purchasers with discounts or perks. And of course always monitor competitor pricing. If your competitors aren't increasing prices yet, you may want to take a smarter approach to stay competitive as long as you can. And we can always look to the big guys to see what to do. Apple as an example, experienced a lot of supply chain increased costs, but they adjusted their sourcing and they optimized their inventory instead of putting the direct price hike onto the consumer. All right, number three, if you are made in America, can you shift marketing and capitalize on it so that you can increase sales? Look, if everyone is paying attention to nationalism, this is also going to drive consumer preferences. So if your products are made in the usa, this is a huge competitive advantage. Consumers will be willing to pay more for American made products, but they need to see the value. Make sure that you leverage Made in America branding. If you manufacture domestically, highlight this in your marketing and your packaging and in social media. And if tariffs have forced you to bring jobs back to America, turn that into a strong story. A marketing campaign. Your quality, your craftsmanship, your job creation, your patriotism are all strong selling points with your customers. Here's an example. YETI justifies their higher prices on their coolers because they focus on American made coffee craftsmanship, superior durability and high performance materials. So if you can't market USAID made products for any reason, just emphasize the features, the benefits, the durability, the uniqueness just to justify pricing. And number four, always make sure to reallocate capital for maximum growth. Tariffs will create winners and losers. If you invest shift capital into the right sectors. Certain industries will thrive under these policies and others are going to struggle. So you may want to increase exposure to US Manufacturing, US defense stocks, looking at domestic industries, energy infrastructure. If you're considering AI and semiconductor, looking at American chip makers and companies that are working in AI and quantum computing. And avoid investing in businesses that heavily rely on cheap importance. Thin margins and heavy exposure to Chinese imports could really shrink profits. So really pay attention. Stay diligent. Watch inflation, watch interest rates. If the tariffs drive up prices, the Fed may adjust rates. So always make sure to keep an eye on these policy shifts. That's why these types of conversations are so important. And number five, make sure to stay flexible. Future proof your business model. Economic policies will always change with administrations. Today's tariffs may be removed in four years or they could be doubled. We never know. Businesses need to adapt. Those that adapt will thrive. Those that stay rigid will struggle. So diversify your revenue streams. Don't depend too heavily on one supply chain, one market, one product. Automate and optimize your operations. Reduce costs through AI. We have a whole episode coming out next week on AI and automation and efficiency to help you protect your profit margins. And remember, the businesses, the investors, those who adapt the fastest are the ones that are going to come out on top. Those who ignore this and just don't want to listen to anything that's going on in the government or the politics, well, they're going to be ones trying to play catch up in the next economic cycle if you do nothing else. After listening to this podcast episode, audit your supply chain. Take a look at your pricing strategies. See if you're going to be affected by tariffs at all. Are you going to be hit in your margins? Can you market your products more aggressively by leveraging Made in America branding or looking at automation and increasing efficiency? And remember, these headlines and these news cycles really matter to what's going on in the market. And if it matters to the market, it matters to your money. So always looking at what you should be investing in, what you should be staying away from so that your money can make more money and you don't always have to trade time for it. All right guys, that's all for today's episode. Make sure that you subscribe, Leave us a five star review and share this with someone who needs to hear it. Stay informed, stay strategic, and keep building. Hey guys, thanks for tuning in to this episode and if there was something that you loved or you had a specific takeaway, share, share it and tag me at Candy Valentino. And if you haven't already, grab a copy of my latest book, the 9% Edge Life Changing Secrets to create more revenue for your business and more freedom for yourself. You can pick it up anywhere books are sold, Amazon, Barnes and Noble, or your local independent store. And once you do, head over to 9% edge.com and claim $1500 in pre order bonuses, including a chance to join me on this very show. Thanks so much for tuning in and spending this time with me today guys. We'll see you next time.