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AGI Escapes Containment; Trump Admin: "Hold My Beer" — Tariff Terathread

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Amy Hoy (@amyhoy.bsky.social)

Now that AI got involved it's on topic for TechTakes I guess. Making a containment thread because there might be a lot to sneer about this.

Boring version of of the main story: https://text.npr.org/nx-s1-5345802

Skynet declares trade war on penguins: https://archive.is/Nn5MC

Reactionary news outlet celebrates 77% drop in stock price by taking everyone else down with them: https://bsky.app/profile/brianmfloyd.bsky.social/post/3lluybov3i22o

14 comments
  • so I previously predicted the AI bubble would pop on Trump's watch and crash the stock market. Never did I envision Trump doing it to himself, in a manner so stupid I'm not sure anyone anticipated it.

    I'm wondering what this does to the AI bubble. I think the bubble is led by trillions of dollars desperate for lottery-sized returns. There's so much family, pension and sovereign wealth money that can't get returns on sane investments that they're left only with insane ones.

    This is not about tech at all. If they thought they could do a tech bubble with ELIZA chatbots, we'd have number power plants being restarted to power hyperscale data centres running billions of copies of ELIZA.

    What would it take for this crash to affect the AI bubble materially?

  • To be fair their calculation also involves multiplying by the carefully chosen factors of 4 and 0.25. It's a macroeconomics thing you probably wouldn't understand. https://ustr.gov/issue-areas/reciprocal-tariff-calculations

    The recent experience with U.S. tariffs on China has demonstrated that tariff passthrough to retail prices was low (Cavallo et al, 2021).

    This "Cavallo" reference isn't actually listed in their citations (gee I wonder why) but appears to be Tariff Pass-Through at the Border and at the Store: Evidence from US Trade Policy (link).

    Meanwhile Cavallo et al 2021:

    Chinese exporters did not lower their dollar prices by much, despite the recent appreciation of the dollar. By contrast, US exporters significantly lowered prices affected by foreign retaliatory tariffs. In US stores, the price impact is more limited, suggesting that retail margins have fallen. [...] Our results imply that, so far, the tariffs’ incidence has fallen in large part on US firms.

    Amazing. The government's official position is that tariffs are OK because both US exporters and importers get less money.

  • I know this is going to hurt millions of regular people in and outside the US, many of them through no fault of their own. Despite that I can't help myself.

14 comments