US Tariffs: What Self-Storage and recession have in common.

As we delve into this topic let's talk about the economic climate as it sits today. April 2nd, of this year, 2025, has been dubbed "Liberation Day" by US President Donald Trump. The name, "Liberation Day" suggests that he and many Americans have felt that America has taken a backstage on the world's odometer of respect when it comes to fair trade reciprocity. Therefore the US is being "Liberated" from the world's "unfair" treatment of the United State in world trade. Regardless if you agree with the meaning behind Liberation day, I think one think is clear, the exact impact of Tariffs for the US's future is uncertain. For those curious cats our there, Here's the Liberation Day Tariff Chart:

Undeniably Tariffs have sparked controversy - with some countries even retaliating, most notably China. On April 10th, China raised Tariffs on US imports from 34% to 84%, and on April 12th China increased Tariffs to 125%, in response to reciprocal Tariffs from the US. China has said they "will ignore" further Tariff escalations but also said that they would "take firm countermeasures and fight until the end". Their statement likely means they will ignore increasing Tariffs against the US while utilizing other means to fight an economic war. Here's the Chinese Embassy's April 11th post:

When talking about China, I can't help to think about all the cheap goods found in dollar stores across the country. Although I know that China produces more than just the contents of our local dollar store, it's hard not to associate the two together. In a time of the highest consumer credit-card debt, part of me relishes in the opportunity that there will be less low cost "temptation" for those that struggle to manage their personal finances. The other part of me knows that a Tariff war with China will hurt small businesses and could cause huge ripple effects across the United States. In contrast to the grim news you hear about Tariffs, recently I have been seeing social media posts about the self-storage industry. The owners of these operations talk about the industry as if it could never fail. To be honest, almost every post I see shows companies breaking new ground on a self-storage facility. "Every" post might be an exaggeration but these posts got me thinking: How does Tariffs impact the self-storage industry? and more specifically, does the self-storage industry speak to the health of the economy at large? This question has me looking back to the days that my wife and I were remodeling our current house - where we bought nothing new. Our lighting fixtures, fans, vanities, appliances and the likes were all purchased "used". What we didn't replace with "new-but-used" purchases we covered in a slather of fresh paint; think kitchen cabinets or the crimson red walls (yuck). We probably saved $15,000 or more purchasing from return outlet stores or "Joe" who had a self-storage unit full of Home Depot returns - like fans. I can still remember the 13 fans I had to put together by combining parts; I can practically install those fans now in my sleep.

The abundance of essentially "new" goods, sold at a steep discount, really spoke to me about the excess we enjoy as a nation. It's crazy to think about the relaxed return policies some companies extend to customers, which is likely directly correlated with cheap replacement of those goods, from places like China. When you look at companies like Amazon, their marketplace service is powered by small profits made through a large quantity of sales - and we know how profitable Amazon is. To this point, am I the only one that has a 2 car garage where the junk is slowly swallowing the one car that can fit inside? This question gets to the point of the article. I think for the self-storage industry to thrive you have to have an economy where consumerism keeps growing. Many storage units are like Uncle Fred's unit; full of furniture from the 80's, drawings from when his children were 3, and the "holding it until I need it" pile. If we were to look at our economy like a storage unit, is increased consumerism what's best for us as a nation? Our spending has been propped up by debt and increased money supply by the government. Should we keep spending to keep the business cycle going, temporarily, up until the point where we can't feed the beast anymore? Or do we try to reset the economy through a controlled burn (recession)? I believe both options lead to a similar outcome - destroyed businesses and lives. Do we treat our economy like a storage unit - build more and cram more until we can't do it any longer - hoping for the best? Or do we suffer with not having as much, pulling out all the items in the unit, reorganizing - discarding - selling off, then starting fresh? I have my opinions, but no certainty that they're right. What are your thoughts? Share this on social media and let others know!