Trump proposed a bold plan to impose a 104% tariff on Chinese goods, seemingly targeting China, but in reality, dragging American companies into a deep abyss, perfectly illustrating the saying 'shooting oneself in the foot'.
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Apple Inc. heavily relies on China for production, with 90% of its products made in China. Once high tariffs are implemented, the significant increase in costs will inevitably lead to soaring product prices. Consumers may shy away from the expensive Apple products, putting Apple’s market share at great risk. Although Apple is attempting to establish new production bases in India, Vietnam, and other locations, the maturity of the supply chain and production efficiency in these regions cannot compare to China in the short term, which fundamentally cannot save the situation.
Ford Motor Company is heavily reliant on Chinese supplies for batteries and semiconductors. Amid the global push for electric vehicles, Ford's electric vehicle plans face significant risks due to dependence on the Chinese supply chain. Once tariffs take effect, disruptions in the supply of batteries and semiconductors will lead to skyrocketing costs, not only shattering the electric vehicle dream, but even its flagship F-150 may become prohibitively expensive due to increased costs, losing market competitiveness.
Tesla is similarly mired in the Chinese supply chain, with 50% of its vehicles and 100% of its batteries coming from China. High tariffs will eliminate Tesla's price advantage, and Elon Musk's dreams of increasing sales may only evaporate, as he laments the poor sales figures.
Retail giant Walmart sources 70% - 80% of its goods from China. Walmart has built a myth of low-price retail based on low-priced goods sourced from China. However, once the 104% tariff is implemented, the cost of goods will skyrocket, and the low-price advantage will vanish instantly, leading consumers to turn to other competitors, with Amazon likely smirking at Walmart's predicament.
In the chip sector, Qualcomm derives 66% of its revenue from the Chinese market. As Chinese companies like Huawei vigorously develop self-researched chips, Qualcomm already faces challenges in the Chinese market, and the increase in tariffs is like adding insult to injury; the rise of Huawei's self-developed chips could directly knock Qualcomm out of its market position in China.
Micron Technology has 57% of its market in China, and high tariffs will make its products lack competitiveness in the Chinese market, making it highly likely that competitors like Samsung and SK Hynix will reap the benefits.
Boeing sells 20% of its planes to China, making it an important market. After imposing high tariffs, it is almost inevitable that orders will shift to competitors like Airbus. Worse still, some raw materials that Boeing relies on for production, such as titanium, also come from China; disruptions in the supply of raw materials will halt Boeing's production, exacerbating its operational difficulties.
Some Nike products are produced in China, with 20% - 30% of its production capacity relying on China. Tariffs will lead to increased product costs, forcing Nike to raise prices, which will undoubtedly harm the loyalty of consumers who have supported it for a long time, while competitor Adidas is likely to seize the opportunity to capture market share.
Buick, a brand under General Motors, sells well in the Chinese market, but its battery supply relies on China. Tariffs that trigger battery shortages will cause General Motors' electric vehicle plans to fall apart, leaving it far behind in the competitive new energy vehicle race.
Coca-Cola relies on China for packaging materials. Tariffs will raise packaging costs, making soda price increases inevitable. This undoubtedly gives Pepsi a great opportunity, as Pepsi can fully take advantage of the situation to expand its market and capture Coca-Cola's share.
China has a large and mature manufacturing system, occupying a key position in the global supply chain. Although the U.S. attempts to exert pressure through tariffs, China has long since developed diverse markets in ASEAN, Africa, and elsewhere, possessing strong market resilience. In contrast, U.S. companies, which have long depended on the Chinese supply chain, are facing multiple dilemmas under Trump's high tariff policies, including skyrocketing product costs, loss of market share, and obstructed development plans. Trump's tariff plan ultimately harms the interests of American companies, forcing American consumers to bear the burden of high prices, which can be seen as a typical case of 'shooting oneself in the foot.'
