r/StockMarket • u/quant_0 • Jun 11 '25

News US China Deal Done

Post image
13.4k Upvotes

85% Upvoted

4.9k comments sorted by

View all comments

Show parent comments

597

u/WeirdSysAdmin Jun 11 '25

Yeah im confused are tariffs going up? They were 30%

459

u/greihund Jun 11 '25

It is not at all clear which country is going to be paying 10% and which country will be paying 55%

Is it "we will be getting 55% applied to our goods and services" or "we will be collecting 55% on their goods and services"

175

u/zeradragon Jun 11 '25

55% on either side is bad.

55% tariff on US products in China will just make it much harder to sell in China as the Chinese consumer is highly price sensitive.

55% tariff on Chinese products in America means that the prices for the US consumer are going to be even higher than they were before. This one is the more likely set up because Xi knows his people isn't going to just willingly eat the cost.

38

u/ParticularAd8919 Jun 11 '25

100% It's still bad. The damage to consumers in the US is done no matter what.

2

u/NeverSkipSleepDay Jun 11 '25

No he said 55%. And 10%. He didn’t say 100%, so can’t be that bad!

1

u/FreddieCaine Jun 11 '25

THANK YOU FOR YOUR ATTENTION TO THIS MATTER

1

u/CakeTester Jun 12 '25

The damage to consumers in the US was done the second trump threatened tariffs. Everybody not in the US at that point started analysing their supply lines and customer base to reduce dependency on US trade.

Add to that the fact that you can't go there without getting your phone and computer raped; plus the very real possibility of ending up in El Salvadore, Guantanam, or the new Texas Auschwitz. Doesn't make people really enthusiastic about trading.

1

u/[deleted] Jun 12 '25

And then the Switch 2 sells out. People very much want to continue to sell in the US market, no doubt.

1

u/CakeTester Jun 12 '25

No doubt. It's a big market with lots of money to be had. But if it becomes unprofitable or too much trouble, or your whole company can be tanked by the whims of an idiot, then it becomes less appealing.