#Tariffs

Trump's Tariffs: Many people still do not understand what tariffs mean; they only know it's bad news. Let me explain in simple terms.

First, let's explain what a tariff is.

For a simple example.

Assume China produces a mobile phone and exports it to the United States, with a selling price of 7,000 RMB. If we calculate at an exchange rate of 7:1, the price of this mobile phone in the U.S. market would be $1,000.

At this point, if Trump imposes a 30% tariff on Chinese goods, the price of this mobile phone in the U.S. market will directly rise to $1,300.

The additional $300 is equivalent to the U.S. government's "cut."
After Trump raised tariffs, the increase in mobile phone prices may lead to a decrease in sales. The performance of mobile phone manufacturers also faces the risk of declining, which could lead to a stock price crash.

If mobile phone manufacturers want to maintain their market share in the U.S., they will have to lower prices. For example, if they export the phone at a price of $800, after adding a 30% tariff, the selling price would still be just over $1,000, allowing them to maintain sales.

But the problem is, after the mobile phone manufacturers lower prices, their profits decrease, and they will similarly face the misfortune of declining performance and plummeting stock prices.

No matter how they try to maneuver, mobile phone exporters cannot escape a significant drop in stock prices!
Asian countries, especially Japan, export many products to the U.S. Under Trump's tariffs and bombarding policies, company profits will face unprecedented impacts.