Stock Investment And Trading

No deal yet. So how? So US-China trade talk did not end with a conclusion, nor it stops the tariff hike from 10% to 25%. Beijing will come up with countermeasures, but did not specify the details. What will happen next? Let's look at how currency exchange impact the tariff and import-export companies. The USD has strengthened against RMB in past 5 days, since Trump announced the recent rate hike. However DXY does not show strength.  First we look at the impact of US tariff on Chinese imported goods. Chinese goods imported will be levied with higher tax, it increases the cost of goods. Naturally the import company will increase the price of the goods. US consumers compare prices and may choose to buy similar goods from other countries or they can choose US goods. It brings up sales for US/other countries company.  However when USD strengthen against RMB, Chinese goods become cheaper then. It brings down the cost and price of Chinese goods. Normally the currenc...

Last Sunday, Trump announced that US will impose 25% to 200bn of imported Chinese goods by Friday if trade deal is not made. This comes with a surprise. Today is Thu, and it is a critical day. China Vice-Premier is taking flight to US. If there is no deal made by tomorrow, the tariff will be imposed. What can happen? 1. US can delay as the talk restarted towards their direction. 2. US can impose 25% tariff partially on certain goods (means less than 200bn) as the starting 3. US can go forward to walk the talk and impose full 25% tariff. However going this option means China will likely retaliate.  What is the worse case if nr 3 happens? The cost of imported China goods will increase price by 15%. Consumer can still choose to pay for high priced goods, or they can choose to turn into US goods. How much can local produced goods able to supply for the demand? When US goods are not able to supply sufficiently, price will increase and they might continue to buy China goods as it...