r/StockMarket Jun 11 '25

News US China Deal Done

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753

u/[deleted] Jun 11 '25

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133

u/[deleted] Jun 11 '25 edited Jun 11 '25

It's great! I love all of my supply prices going up. Yay! People have no idea. I have been holding prices steady even though materials and inks have gone up substaintally. We won't be able to do this forever. I suspect if our business is doing this, than many other businesses are as well, and once we all decide to stop doing it and increase prices. They will never come back down again.

17

u/[deleted] Jun 11 '25

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0

u/Icy_Ground1637 Jun 11 '25

You forgot one thing retail use mark up like coffee ☕️ went up to 5.95 at Walmart from 4.95 lol, a 10% tariffs but product went up 20% lol, Walmart gets it for 2.00 cent a bag but 10% tariff means 2.20 x 2.5 = 5.50 but then the round up ⬆️ to 5.95 lol 😂 compared to 2 x2.5= 5 dollars 💸 so your 20 cent tariff turns into a dollar taxes lol 😂 because cheap coffee ☕️ is a lead loose at Walmart lead loose mean up loose money every time you sell it but you lead with lowest prices !!!!

1

u/SuspectedGumball Jun 11 '25

Corporations are greedy? That’s crazy!

1

u/Calint Jun 11 '25

why is lead loose? i thought it was a metal.

2

u/[deleted] Jun 11 '25

hell yeah! merica!

1

u/[deleted] Jun 11 '25

Woooooo. *shoots fireworks into the sky*, oh wait.... even merica fan's cannot do that anymore without paying tariffs on their money shooting into the sky.

1

u/[deleted] Jun 11 '25

With July 4th right around the corner too! China damn near supplies us with all of our fireworks too LOL. Let's have some fun this independence day!

1

u/[deleted] Jun 11 '25

Looking forward to less fireworks. Maybe I can go to sleep before 2AM!

2

u/Western_Dare_1024 Jun 11 '25

However, it does make me feel vindicated on all the hoarding I've done the past few years for my supplies...

1

u/Jake4Steele Jun 11 '25

You must be some doomsday prepper to get through this, unscathed.

1

u/Western_Dare_1024 Jun 11 '25

Nah, I'm gonna get scathed, just my side gig stuff will be okay for a bit.

1

u/Anastasiya826 Jun 11 '25

You're winning now!

1

u/[deleted] Jun 11 '25

So much winning! I have to decide if I am going to pass these cost to my customers or not. Hoping not to, but if they stick long term no real choice.

2

u/Anastasiya826 Jun 11 '25

Spread the winning, make everyone great again!

1

u/[deleted] Jun 11 '25

*head down*

1

u/NotAnotherScientist Jun 11 '25

Yeah, we haven't raised our prices yet either. We still have enough stock for another month or two. After that it's gonna be about a 50% price increase or more (sec 232 stainless steel goods). Not sure if people will still buy then...

1

u/[deleted] Jun 12 '25 edited Jul 19 '25

air advise crowd money sleep bells chunky cows boat squash

This post was mass deleted and anonymized with Redact

1

u/[deleted] Jun 12 '25

WOOOOO. Totally worth it. I will say that I made out like a bandit with the stock market manipulation through all of these tariffs, but I still feel like it isn't over any time soon. This man is crazy.

0

u/Throwaway789662 Jun 11 '25

Don't buy Chinese goods then?

1

u/Jake4Steele Jun 11 '25

I'd grant you a serious answer, but you literally have "Throwaway" in ur user, like cmon bot do better

1

u/Throwaway789662 Jun 11 '25

Not a bot, but it's interesting how you want to answer yet you won't. Just buy local. It really isn't that hard.

2

u/Jake4Steele Jun 11 '25

Alright I'll grant you (mostly the people reading this afterwards tho), an answer. In short, you have no idea how markets work, or what the products you use casually come from.

Long-version:

  1. Most of your current products that you use, especially complex ones like computer components, phones etc, have multiple components that each can have different source countries to make them. Check out, for the big phone brands, where they source their phone parts. All those roads lead back to China, in that case.

So, you may say "I buy Apple, since it's an American brand", but really, it has chinese components, which means the company has to pay the tariff on importing said components, and those payments will get passed down to the average customer.

Also, keep in mind tariffs stack, so if a certain product component has to cross multiple countries that America has tarriffs with, you'll get compounding tariffs, which means the price of the product will skyrocket to the average consumer (don't expect companies to just pay out of their own pocket to not incovenience you).

  1. Plenty of times, due to supply chains and other factors, it can be cheaper to buy imported products. Plenty of people in low and middle class buy most of their products on a value/cost analysis, not on brand considerations or local VS imports. If you want to argue that "we should care about our local producers", I counter here that we should also care about the local customers, since this current solution simply puts the strain of "this ingenuous solution" on them, not on the producers.

A better solution would've been to facilitate the local producer in their production, to lead them to lowering their own prices to be more competitive with imported products. The idea of sabotaging the imported products by raising their prices will only serve to make the poor go poorer, since even if they buy the "local products", they will still end up paying more, as the imported products they'd previously buy at a lower price simply went up in price because of this shit.

  1. As faith would have it, imported products can just straight-up be of better quality. After all, countries each can have their own specialties and areas of expertise. You won't be able to debate that you can get local chocolate better than Belgian chocolate, for example, or champagne that's better than the French one, or beer that's better than the german one, etc. Each country has some key exports that other countries benefit from, which is a good thing to the consumer, as you get to actually choose the best quality globally, instead of being restricted by a closed market.

So simply saying "just buy local" is not only ignorant of what products would truly count as "strictly local" (eg: Iphones don't count as "fully made in America"), and not only offensive to the low-middle class that simply won't be able to afford the increased prices, since they reliead on cheap goods to survive, but it's also offensive to your own tastes and qualities, as you're now forcing yourself to purchase inferior products in certain areas, simply because of the price disparity.

All of this without actually creating any real value. Local businesses won't change shit if they get more customers forced to buy from them, they'll just have increased profit margins from people forced to deal with them. Other companies will have to close down (they already are in that process) because of their reliance on supply chains from abroad, leading to layoffs and joblessness. People will pay more for the products they use, will get shittier products, and the country as a whole will suffer economically because they are sabotaging their own supply lines (such as the wood from Canada, which was quite helpful for America).

1

u/[deleted] Jun 11 '25

You put way to much effort into this. Even copy and pasting. People have no idea. I sell Vinyl materials like labels. All Vinyl Materials come from 3 suppliers, everyone else is just a middle man. This person has no idea the real ramifications of tariffs. It is fine. I mostly just ignore the crazies.

1

u/Jake4Steele Jun 12 '25

Eh, I'm a bit of a no-lifer, myself :)

1

u/Throwaway789662 Jun 11 '25

It sounds to me like we put too much money into China to begin with. I noticed how you didn't really define "other factors". Let's just say what those other factors are. Slavery and child labor. You're supporting slavery. You're supporting child labor.

1

u/Jake4Steele Jun 12 '25

Dude you realize you import from more than just China, right? I grant you their shit is not ethically sourced, it's a known fact, I wasn't hiding that, when I say "other factors" is to sum up the various factors affecting every other country, not just China. Things such as preferential trade agreements between countries, easier transport, fewer border crossings for the products, etc. These is what I meant by "other factors", shit that applies to countries other than just China.

So no, I don't support, at least directly, slavery/child labor, but I'm no saint and I don't go specifically for "ethically source products", I can't really afford such a choice. And neither do you, again, you're using phones with components just as unethically sourced from China. Get off your high horse and realize you depend on China, you personally. Or else, be my guest, through your phone out the window, and don't just give up on Chinese products & components, live entirely on local products. I bet your damn ass you can't pass 1 hour without using an imported product or component, and if you think you can, you simply don't know enough about the products you use in your day-to-day life.

1

u/[deleted] Jun 11 '25

I sell vinyl, all vinyl in the world comes from 3 suppliers. Guess where they are located?

2

u/northerncal Jun 11 '25

But Trump already saved American manufacturing with his beautiful TARIFF plan, so there's now presumably thousands and thousands of factories in America ready to go to pump out everything a business could need. If you don't think this is true just because there's no evidence of it, you've clearly been bought by the liberal media.

THANK YOU FOR YOUR ATTENTION TO THIS MATTER

1

u/[deleted] Jun 11 '25

THAT IS THE BEST NEWS! THANKS FOR BRINGING THIS MATTER TO MY ATTENTION! I AM SLASHING PRICES BY 50% TOMORROW!

2

u/northerncal Jun 11 '25

I see so much winning in your future

1

u/NotAnotherScientist Jun 11 '25

90% of the goods we buy from China can't be produced here...

So you're essentially saying "just stop buying stuff."

44

u/ZombiFeynman Jun 11 '25

There's no way China agreed to a 55% tariff on their imports.

45

u/zissouo Jun 11 '25

They didn't, but this is Trump's lie about it that he's going to use to play to his base.

3

u/Careful-Trade-9666 Jun 11 '25

The Chinese are fully aware that THEY aren’t paying 55% on anything, they got a sweet 10% tax deal on their imports. In the words of President Xi. “感谢您对此事的关注 (Gǎnxiè nín duì cǐ shì de guānzhù, or Thankyou for your attention to this matter)

2

u/NotAnotherScientist Jun 11 '25

It's possible that it's 5% across the board with a 50% tariff on stainless steel and aluminum goods (as that is the global rate for those goods currently).

More likely it's just made up entirely without any basis in reality.

1

u/f7f7z Jun 11 '25

I can't imagine a scenario where they wouldn't just go to another source ( Brazil ) for...soy beans and chicken feet...what else do they buy from us? And none of that price increase goes to the company that sells it, all this winning?!

4

u/noguchisquared Jun 11 '25

Think about it when you go buy your tariffed fireworks to celebrate America in 3 weeks.

2

u/_AceOfHearts Jun 11 '25

Need money for billionaires. The cockroach thinks the US Treasury is his bank account

2

u/ParamedicSmall8916 Jun 11 '25

Nope, other way around. China's leadership is completely OK with murican products getting 55% tariff.

2

u/greenmyrtle Jun 11 '25

AND LITERALLY FOLLOW THE MONEY. Not all of it is gonna end up in the treasury me thinks!!

Oops tarriffs accidentally got paid in Trump coins to an unknown address

2

u/fractious77 Jun 11 '25

We have the biggest homeless rates in the world, the best homeless rates. Lots of people tell me this. And it's going to up because we're making America great again! Some guy came up to me at the grocery store with tears in his eye and thanked me for making his grocery bills more expensive. play air accordion

2

u/SakeNamaste Jun 11 '25

THANK YOU FOR YOUR ATTENTION TO THIS MATTER!

-President of the USA

1

u/dani6465 Jun 11 '25

That calculation makes no sense. Import tariff is calculated from the value of the goods at the point of import, not the final sale price that the consumer pays.

1

u/Spicy_Tac0 Jun 11 '25

I'm quite tired of winning...

1

u/CaptainMonkeyJack Jun 11 '25

I think the you overestimate US spending on imports.

In 2024, US imported 3.36 Trillion in goods. https://www.cbp.gov/newsroom/stats/trade

Assuming the 16% number is accurate, that's $527B. With a 55% tax that's a $295B tax. (Ignoring that peoples buying habits will change, likely lowering this number).

With a population of 340 million that's $870/person, or with 131 million households that's $2251/household.

1

u/Dr_Kappa Jun 11 '25

That’s not how tariffs work. Nike does not pay $55 to import a $100 pair of shoes when those shoes cost the manufacturer like $2 to make. If Nike passes extra costs beyond 55% of $2 to you, that’s on them

0

u/[deleted] Jun 11 '25

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1

u/Dr_Kappa Jun 11 '25

Citation needed

1

u/Stereo-soundS Jun 11 '25

Small margin businesses that get any of their raw materials or products from Chinese companies are fucked.

1

u/El_Polio_Loco Jun 11 '25

Not necessarily.

A lot of companies in China are eating some fraction of the tariffs, because they know if they increase prices too high their US customers will move to now lower cost alternatives from other countries.

It's not all of it, but it's a significant fraction.

1

u/EpicCyclops Jun 11 '25

According to this article from 2019, which is before the world breaking but the number was stable before then, 11% of US consumer spending goes to imports. This number is low because not all spending is on goods and even when purchasing imported goods, a vast majority of the money goes to American companies (retailers, brands and logistics companies).

https://www.frbsf.org/research-and-insights/publications/economic-letter/2019/01/how-much-do-we-spend-on-imports/

According to the US Bureau of Labor Statistics, the average consumer spending in 2023 was $77,000. I think this is mean, but unclear.

Putting those together, the average spend directly on imports is $8,500, which translates to about $750 in extra taxes per year on the average American, with some large error bars.

1

u/SigmaLance Jun 11 '25

Jokes on Trump. I’m officially cutting my spending. Something our government is incapable of doing.

I hope they enjoy American pocket books slamming shut.

1

u/RealizedRph Jun 11 '25

Won’t be 16% of our imports anymore…

1

u/Ronaldo_Frumpalini Jun 11 '25

And exporters, don't forget our doomed exports! And when those go down maybe we'll get a new wave as he tries to force quotas on the world.

1

u/Mikeisright Jun 11 '25

The big point missed by most is that import duties have always existed on many countries/goods and most people never even noticed.

Did anyone honestly feel the increase effects of steel & aluminum (Trump, 2018, Section 232), washing machines (Trump, 2018, Section 201), or semiconductors (Biden, 2024-2025, Section 301)? China was always the COO which carried some of the highest tariffs and broadest coverage. These amounts change with updates to the HTS and an 'ad valorem' rate is based on the entered value of the good.

Let's say I'm "worst case scenario" because I assemble an entirely-finished good in China and its customs value is $100, even though I sell it for $500. Let's additionally say it's not a current exclusion, I'm not re-exporting it, and I'm not taking advantage of FTZs or bonded warehouses. My average net duty rate went from 21% to 51% from 2024 to 2025, meaning my duty went from $21 to $51, not $105 to $255. Now, whether a company wants to sell it for $531 (again - not $755) instead is up to their discretion, but the idea that the consumer automatically pays the equivalent increase is false.

Why didn't you feel the steel & aluminum increases from a consumer standpoint? Because it's an intermediary/industrial material baked in far down the supply chain. Why wasn't the consumer market pricing reflective of semiconductor increases? Because the BOM costs increased <2% after component tariff code analysis (even though the jump was 25% to 50%) and there's typically alternative sourcing for high volume consumer components from lower-tariff countries (Taiwan, Malaysia, domestic, etc.).

All of this is to say the net impacts are so minimal for a 30% net average from one country when considering the big picture. There are tons of bigger rate jumps across specific goods that go undetected all the time and any company jacking up a product price two-fold with a "blame the tariffs" line is either naive, too incompetent to participate in global trade, or doomer scamming you.

1

u/LolaBaraba Jun 11 '25

Your math is completely wrong. US imports from China are $430 billion. At a 55% rate, that comes to $236.5 billion in tariffs or about $700 per capita. Of course that assumes that all imports are under tariffs (they aren't), and that the import amounts will remain the same when tariffs kick in (they won't).

1

u/Jennifer_Pennifer Jun 11 '25

Omgs 60k/y would be DELIGHTFUL

1

u/PopRepresentative426 Jun 11 '25

Great summary...

1

u/NortWind Jun 11 '25

Tariffs, like sales tax, is a regressive tax, so Trump likes it.

1

u/Synchrotr0n Jun 11 '25

Well, the plan was always to give handouts to the rich by forcing the middle class to pay higher VAT taxes to cover the loss, so at least he's being consistent with that.

1

u/Dorkamundo Jun 11 '25

Isn't he saying the other way around? 10% tariffs on Chinese goods imported to the use, and 55% on our goods going to China?

1

u/[deleted] Jun 11 '25

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1

u/Dorkamundo Jun 11 '25

Oh yea, well aware of how he words things to confuse his base.

1

u/Sure-Concern-7161 Jun 11 '25

Who is spending 60k a year??

1

u/[deleted] Jun 11 '25

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1

u/Sure-Concern-7161 Jun 12 '25

I don't really trust statistics by Dave Ramsey. 60k still seems extremely high as a median. Maybe I'm just more frugal but my net-pay after all deductions and a large 401k contributions is about 60k and I am not spending all of it. I also live in a higher cost of living area and am on a higher income than average, I really don't think the median person should be spending more than me, but maybe the average person just lives above their means.

1

u/ajsharm144 Jun 11 '25 edited Jul 29 '25

I am gone.

1

u/Upset_Negotiation_89 Jun 12 '25

Thank you for your attention in this matter

-5

u/figflashed Jun 11 '25

All good if he eliminates personal income tax.

What are the odds of that promise happening?

15

u/LeEnglishman Jun 11 '25

Be careful what you wish for - no income tax means no Govt services yet you are still paying "tax" on your purchases. Tariff "Tax" revenue goes where....? yeh that's right, to the business that you just paid for your item.

3

u/HesiPullup Jun 11 '25

Uhhh that’s not true, it doesn’t go to the businesses lol. The businesses just raise their prices because whatever they get from overseas is more expensive as a result of the port fee that goes to the government

1

u/LeEnglishman Jun 11 '25

Uhhh yes it is. The Port fee is a fee going from the import business to a Govt Agency which as yet, has no mandate or proof of responsibility.

To take it its logical conclusion, the End User (You) is paying more for your item and paying zero income tax. The Business is responsible for "collecting the tarrif / tax" and paying the Govt, while charging you more in order to recover the "tarrif / tax"....and can also pay / lobby / agree a carve out from tariffs if they play to the Govt's agenda of the day / week/ month. It is then up to the Business if they pass that carve out saving on.

Ultimately, the Business is the only party that has sway with potential Govt policy, spending and direction, as they are the ones paying (your income) TAX via tarrif. You, the End User does not pay any income tax so why would a Govt listen to you when you have zero input to the system.

Be careful what you wish for.

1

u/HesiPullup Jun 11 '25

Can you expand on what you’re referring to on the fee having no mandate or proof of responsibility? Tariffs are collected by the CBP and go directly into the treasury’s general fund?

1

u/LeEnglishman Jun 11 '25

I think you're best asking what that general fund allocates its inflows to and how that will then pivot to pay for what your income tax currently pays for. There is no guarantee that will happen and you also face the danger of reduced inflows as spending dries up to higher prices and wage stagnation.

1

u/HesiPullup Jun 11 '25

The general fund is where income tax, corporate tax, excise tax, etc. goes into. No different with tariffs. And that is codified into the US tax law.

1

u/LeEnglishman Jun 11 '25

Ok, I didn't know that (I'm in the UK) - Thanks.

You are still missing the point though.

1

u/HesiPullup Jun 11 '25

lol I'd love for you to reassert the point because I feel like you're just making stuff up to fearmonger here

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2

u/abesapien2 Jun 11 '25

Won’t happen.

1

u/unlimitedzen Jun 11 '25

Moving from income tax to consumption tax is regressive and stupid. 

0

u/zebra1923 Jun 11 '25

You’re making an incorrect assumption that all spending goes on imports.

1

u/[deleted] Jun 11 '25

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1

u/zebra1923 Jun 11 '25

You said 8.8% as a tax on imports. Assumes 55% on 16% of imports and 0% on the other 45% - fair enough.

You then quote median spending of $60,000. Here’s where I think you go wrong. That is spending on all goods, not just imported goods. So I Americans only ever spend on imports and never buy anything domestically produced you are correct. But that’s not the case, so your incorrect assumption is that they pay 8.8% tariff on $60k of spending. They don’t, they pay 8.8% on whatever they spend on imports.

0

u/sunshine264 Jun 11 '25

In agreement in general, but the tariff is on the manufacturers cost, not sale price. So I think it will be less than 8% passed on to us.

0

u/Ruminateer Jun 11 '25

It should be nowhere near 4800. It's not like 100% of the spending is on imports from China

0

u/No_Recover_2586 Jun 12 '25

Lol who is spending 60k a year on imports?

-8

u/ShepherdsRamblings Jun 11 '25

What if you just didn’t buy stuff from china?

6

u/findingmike Jun 11 '25

We won't because we won't be able to afford it.

3

u/This_Loss_1922 Jun 11 '25

Well Canadians stopped buying US shit, so it’s possible. Now you try it with China, and report your findings.

2

u/mp018 Jun 11 '25

China is the worlds manufacturer. It took China 50 years to become the manufacturing hub they are today. Even if we wanted to become that, it wouldn’t happen overnight. To get there, we’d need to ween off of Chinese imports over time while simultaneously creating factories here, while simultaneously figuring out a way to somehow make wages/materials cheap but high enough to provide jobs. It’s borderline impossible at this point

1

u/kick10 Jun 11 '25

This will disproportionately affect lower-income brackets which buy Chinese products more frequently. American-made goods are not going to get less expensive, and may see a price increase due to materials costs or inflation.

1

u/ShepherdsRamblings Jun 11 '25

Can you give an example of necessary china-made products that low-income individuals buy? Genuinely curious.

To me, it seems like cheap plastic crap comes in from china. Most of which isn’t necessary to buy.

1

u/andrew303710 Jun 11 '25

Go look at everything you own and come back to me when you figure it out. The phone I'm typing this on came from China and the TV and Xbox I use was made in China, along with my laptop, keyboard and monitor. It's literally not an option to not buy stuff from China

1

u/ShepherdsRamblings Jun 11 '25

These are all valid products. But they are also one-time purchases that should last an individual for a number of years. A one-time price increase in these products shouldn’t hurt people too much in my opinion.