摆渡哥解套教父
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Trump once wielded the tariff stick, causing a shock to the global economy, but many people were still confused and did not understand what imposing tariffs actually meant. Today, I will explain it in simple terms.
First, we need to understand what tariffs are. Tariffs are actually a type of tax. When a country's goods enter another country, the government of the importing country charges the exporter a certain percentage of tax.
For example, suppose China produces a phone and exports it to the United States at an original price of 7000 yuan. At an exchange rate of 7:1, the selling price of this phone in the U.S. market would be 1000 dollars. But if the Trump administration imposes a 30% tariff on Chinese goods, then the price of this phone entering the U.S. market would directly rise to 1300 dollars. The extra 300 dollars is like the U.S. government taking a cut.
With the tariff in place, the price of the phone rises, and American consumers' willingness to buy decreases, which naturally affects sales. As a result, the performance of phone manufacturers may decline, and their stock prices face the risk of crashing.
Can phone manufacturers lower prices to maintain sales? Of course, but lowering prices means sacrificing profits. For instance, if a phone manufacturer originally exported phones at a price of 800 dollars, after a 30% tariff, if the selling price still stays just over 1000 dollars, this could maintain sales. But the problem is that the money the phone manufacturer makes after lowering the price decreases, so performance will still decline, and stock prices may also plunge.
It can be said that no matter how phone manufacturers maneuver, under Trump's tariff stick, the stock prices of exporting manufacturers face a significant risk of falling. This also explains why at that time, Asian countries, especially Japan, saw profits of companies that exported a large amount to the U.S. being impacted so severely.
Tariffs may seem simple, but their effects are profound. They not only concern the economic lifeblood of a country but are also closely related to global trade. What are your thoughts on tariffs? Feel free to leave your comments in the discussion area, and let’s explore this topic together.
First, we need to understand what tariffs are. Tariffs are actually a type of tax. When a country's goods enter another country, the government of the importing country charges the exporter a certain percentage of tax.
For example, suppose China produces a phone and exports it to the United States at an original price of 7000 yuan. At an exchange rate of 7:1, the selling price of this phone in the U.S. market would be 1000 dollars. But if the Trump administration imposes a 30% tariff on Chinese goods, then the price of this phone entering the U.S. market would directly rise to 1300 dollars. The extra 300 dollars is like the U.S. government taking a cut.
With the tariff in place, the price of the phone rises, and American consumers' willingness to buy decreases, which naturally affects sales. As a result, the performance of phone manufacturers may decline, and their stock prices face the risk of crashing.
Can phone manufacturers lower prices to maintain sales? Of course, but lowering prices means sacrificing profits. For instance, if a phone manufacturer originally exported phones at a price of 800 dollars, after a 30% tariff, if the selling price still stays just over 1000 dollars, this could maintain sales. But the problem is that the money the phone manufacturer makes after lowering the price decreases, so performance will still decline, and stock prices may also plunge.
It can be said that no matter how phone manufacturers maneuver, under Trump's tariff stick, the stock prices of exporting manufacturers face a significant risk of falling. This also explains why at that time, Asian countries, especially Japan, saw profits of companies that exported a large amount to the U.S. being impacted so severely.
Tariffs may seem simple, but their effects are profound. They not only concern the economic lifeblood of a country but are also closely related to global trade. What are your thoughts on tariffs? Feel free to leave your comments in the discussion area, and let’s explore this topic together.
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
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