📉 Where is the real downside of tariffs? Let's clarify in three sentences:
When the beautiful country imposes a 30% tariff on Chinese products, it means that for every phone sold, a large sum of money is 'taken away':
📱 A Chinese-made phone originally has an export price of $1000, but after the tariff, it becomes $1300. This forces either a price increase leading to a loss in sales or a price cut resulting in a drastic drop in profits.
No matter the choice, exporters' profits will be squeezed, performance will decline → stock prices will be pressured. This is the core logic of why Asian export companies collectively drop when tariffs are announced.
