Why would a trade war matter? The phone is built in China so are the laptops. They aren’t US exports.
Retaliation. If US imposed tariffs on china apple will be a high value target for the Chinese.
Trump has not started any war yet. Protesters are starting wars at Trump before/after the inauguration.
Let’s see whether Trump will start any war and whether he will lose the wars
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How about now?
6.55%
This shareholder is very happy now.
China will retaliate against products built in China? That makes zero sense. If they retaliate, it’ll be further restrictions on things built in the US. They already do that as I’ve pointed out before. They expect us to take their stuff with completely free trade terms while they restrict our trade with them. That’s not a good deal, and I don’t care if it’s due to “political reasons”. Trump is 100% right in wanting to tear up our trade deals and have fair ones.
So you are saying forget about WTO just go nuclear on trade? As the world’s 2nd biggest economy I don’t think China is completely helpless in retaliation.
WTO has mechanism to resolve trade disputes. Obama raised tariffs on Chinese steel under WTO terms. If China is not holding their share of the deal we have existing channels to challenge them. But the fact that we don’t tells me that maybe things are not that one-sided as Trump would have people to believe.
Please note that US will not impose tariff on China product. This is not the intention of Trump or Republicans idea. US will not account “whatever import costs” apple make as “expenses”. This is not for apple, but for all companies.
Trump does not account all imports cost as expenses. All companies can not claim import cost as expenses.
This is internal IRS accounting system. China or any other country can not retaliate over this.
This is the main reason Foxconn is trying to establish a factory in USA. This is what Trump wants it, make the items locally.
That’s not even close to what I said. I want equal trade. It took years for steel tariffs to be implemented.
Agree that it made zero sense. Because of the reduced sale in USA, many Chinese working in Apple factories in China would be out of a job or reduced pay. Retaliate implies putting more Chinese out of a job… wtf how does it benefit China. The right way to retaliate is to impose tariff on US manufactured products such as cars, Hollywood shows, Disney theme parks and clothing.
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OK. The best way to retaliate is to hurt the Midwest, aka Trump country. Maybe China can refuse to buy farm products like beef and corn. I bet some big team in Chinese government is busy drawing up plans.
Now you get it. I suspect Trump is just playing bluff for this not to account import as expenses… not accounting for cost of manufacturing/ import is not a generally accepted accounting practice, and I have explained in one post previously, it would cost hyperinflation and good shortages in USA since every shrewd US manufacturing would export their US manufactured goods. He is however serious in wanting to re-negotiate all agreed (previous US Presidents’ promises and signed contracts are not worth anything) trade deals… which mean his agreed deals are only worth max 8 years… don’t have to be honored after he is no longer President.
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This will not create shortages, but reduces the profits of companies which normally tend to import. Those companies, in order to expense, naturally trying to gt from local source like the way Foxconn+Apple bringing project to USA.
This is clear win to Trump. He is not hurting any country, but hurting the companies which imports screws, nuts and bolts what not… Either it increases inflation or prices, it serves his single most aim, BRING JOBS TO USA !
Well it depends on how it is implemented. Previously, you have put forth three scenario, if that are the scenario, it will create shortages and hyperinflation. Frankly, I don’t think Trump voters want those kind of jobs. What they want is to share the prosperity of the coastal states… good pay jobs that allow them to buy a house, own many cars and sent their kids to colleges. IMHO, the silly import thingy is a song and dance, not intended to be implemented… Trump has already claimed many credits about a few car manufacturers bringing back jobs, he only need some from hi-tech manufacturers like Apple, Cisco?, Dell?, not sure who else do hardware. I think a few hi-tech companies get it, sending their staff to MidWest to train those guys there… refer to a link by BAGB. IMHO, would love to see Apple set up a training institute or a R&D centre in MidWest.
Tying it back to real estate, would you invest in Midwest to share the incoming prosperity? Or do you think it’s just all mirror and smoke and nothing substantial will change? Midwest will continue to suck so why bother?
Financial Samurai made the case now is the time to invest in Midwest. I am not sold yet.
I was thinking about it but don’t know much about Midwest… where do you think those hi-tech guys will set up shops? Well, the price would definitely jump up for a few years, then decide to sell or hold.
There are plenty of opportunities within bay area. With small investors like me, this is more then enough to cover. I do not even prefer to go out of bay area.
The more I understand about bay area, better I am. Apart from real estate, I have good control on REITs and Stocks.
Once in three years or four years if I make one rental/home purchase, this is more than sufficient for me.
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Turning the tide on Midwest is unnatural. The natural movement is for talented people come to coastal big cities like here. That’s why despite high housing costs and high income taxes the most talented ones continue to come. So I am still doubtful. I am open to new ideas though.
Build 30 story high rises all over the BA for offices and apartments. Build and they will come. BA can take all the office jobs and let Tesla move to Detroit and make Fremont population grow to one million.
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Who else do hardware?
Right from Home depot, Lowes, Costco, JCP, Macys, sears…every company is importing goods from outside.
When they(POTUS+Congress) reduce corporate tax to 15%, US tax rates goes below the worldwide average country corporate taxes. This attracts all over worldwide investors to bring money to USA. This will stimulate jobs, manufacturing in USA.
Trump is always telling that many presidents+congress failed to implement such policies over 30 years. Since he is from business side, he understands the side.
Whatever I see, from his ideas, overall there are benefits to US local people than any negative consequences.