As of July 17, the tariff situation is still unfolding, and we don’t yet have clear answers on what the economy will look like once all tariffs are finalized and enacted. But we do know, as we’ve long known, that tariffs will make most imported goods more expensive for U.S. consumers. We’re thinking a lot about saving money right now, as we brace for more inflation, but we should also be thinking about making money in a high-tariff economy.
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To get help with this, I asked ChatGPT how to earn money in a high-tariff economy. I was expecting vague answers along the lines of “pick up a side hustle,” but ChatGPT delivered very specific suggestions of entrepreneurial endeavors. Some of these business ideas I’d never have thought about had I not gone down the ChatGPT rabbit hole. The first two suggestions piqued my interest and made me think, “It could work,” while the second two made me think, “This is absurdly unfeasible.” Here’s what ChatGPT came up with.
Start a Local Manufacturing and Production Business
ChatGPT’s first “idea” made the most sense to me: Start a local manufacturing and production business. Tariffs make imported goods more expensive and that makes many consumers turn to locally produced alternatives. This shift in shopping behavior creates an opportunity for manufacturers of local goods to get in on the action.
“Start a small-scale manufacturing business (e.g. furniture, textiles, food processing),” ChatGPT said. “Contract with larger firms looking to localize their supply chain.
“Create high-quality, made-in-country products with strong branding.”
In a separate window, I typed in the ChatGPT prompt bar, “more examples of small-scale manufacturing business.” It provided the following: “Handmade soaps or cosmetics; food and beverage products (jams, sauces, baked goods; home décor items); 3D printed products; eco-friendly packaging or bags and custom clothing.”
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Start an Import Substitution Business
Another niche proposal from the most popular AI chatbot: Start an import substitution business. Here ChatGPT is suggesting that you make items in the U.S. that specifically replace the imported items “(e.g. electronics, auto parts, clothing)” that are getting too expensive due to tariffs. “Focus on goods affected most by tariffs.”
Creating some of these items might be possible, but others might be out of reach.
Start an Agriculture Business
ChatGPT next told me to “start an agriculture and agri-business.” Here, the AI bot is talking about producing not clothing or car parts, but food. “Grow high-demand crops or livestock locally,” ChatGPT said.
This one struck me as a fine idea for a multimillionaire in rural Iowa, but a totally impractical venture for most people. ChatGPT is essentially instructing us to become farmers — a job that requires a lot of skill, upkeep and, most importantly, land. The average farm in the U.S. spans over 460 acres, or 20 million square feet.
Start a Logistics and Supply Chain Services Business
It’s not only foreign products that are affected by tariffs, but also the way they reach us. The shipping industry at a global level will see disruptions, including delays, reroutes and temporary (hopefully) price increases. You can make money off the crisis, according to ChatGPT, by doing the following: “offer import/export consulting; specialize in customs clearance, local sourcing or freight forwarding; develop tech solutions to optimize inventory under tariff constraints.”
Running a logistics and supply chain business sounds like an even more unlikely venture than mass farming. I asked ChatGPT how you can start this type of business, and it gave me a list that included general tips such as “develop a niche” and “write a business plan.” It also instructed me to legally register my business, set up operations and develop vendor and supplier relationships. It’s not that this is bad advice, it’s that it’s woefully subpar. Can you imagine starting a business this complex and serious without an incredibly nuanced understanding of logistics and supply chain management? This is less a suggestion and more a pipedream. But, if it inspires you to learn more and make more, then maybe it’s worth your time.
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This article originally appeared on GOBankingRates.com: I Asked ChatGPT How To Make Money in a High-Tariff Economy: Here’s What It Said
