Closing Thought–17May19

We are in a war of words and deeds…a trade war….with China….Our Beloved Supreme Leader went on the Tube and soothed the ruffled feathers on Wall Street and the markets calmed down a bit…..but how about the rest of us unwashed masses that do not depend on Wall Street for our wealth?

Me? I do not shop on 5th Avenue so I want to know how I will fare with Trump’s mash up with China…..

Walmart warned on Thursday that higher tariffs on imports from China will mean higher prices, the AP reports. The comments came after the nation’s largest retailer reported its best sale performance at its established US namesake stores for the fiscal first quarter in nine years. It marked 19 straight quarters of same-store sales gains. “We’re monitoring the tariff discussions and are hopeful that an agreement can be reached,” said Chief Financial Officer Brett Biggs. But he told reporters, “Increased tariffs will lead to increased prices for our customers.” Walmart declined to comment on what type of price hikes shoppers could expect and which products would get the biggest increases.

The specter of higher prices was also echoed by Macy’s CEO Jeff Gennette. He told investors Wednesday that if a fourth round of tariffs takes effect, that could mean higher retail prices for both store label and national brands. Target, JC Penney, and other major retailers will be reporting results in the next few days and should shed more light on the issue. Walmart, Macy’s and other major retailers have been left largely unscathed by the first several rounds of tariffs since they focused more on industrial and agricultural products. But that changed last week when the Trump administration slapped 25% tariffs on imports like furniture. The administration wants to extend the 25% tariffs to practically all Chinese imports not already hit with levies including toys, shirts, household goods and sneakers.

While Wall Street smiles the rest of us get raped……well our wallets to be exact……not what I signed on for…..

You?

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10 thoughts on “Closing Thought–17May19

  1. My personal opinion ….. The US and the whole world have made China extremely rich … now they are using their wealth to threaten the sovereignity of other countries, like the Philippines, Vietnam, Indonesia, India, and even Australia. China has even annexed a part of Myanmar as payment for Myanmar’s staggering debt… nnow China is doing the same thing to South America and Africa. …. all because we want their cheap products, .

    1. China has become an economic giant thanx to the Western world…..we moved to make them included and it is biting us in the butt….chuq

      1. All the numbers I can find show only about three per cent of US consumable products are made in China. Most of those are knickknacks sold at places like Wal-Mart.

      2. Most Americans buy at Walmart because they cannot afford Macy’s…..so 3% is not a high number but what is meant by consumable? chuq

  2. The arsenal of diplomacy against bad actors contains economic weapons not just gunboats. The boycott, the embargo and tariffs have been employed by presidents throughout our history. Finally we have a president who will confront China and say “no more of your crap.” We ought to be glad. Of course there is blow back on American consumers and manufacturers. Gotta take a hit until the other side modifies its harmful behavior. Do you prefer releasing nukes ? The “hit” is softer than more decades of abuse. Markets must make the adjustment. It will be temporary. The northeastern merchants vilified President Madison’s effort to stop France and mostly England’s interference with our trade to each other during the Napoleonic Wars and re impressment too. They called it “Jimmy Madison’s War” (War of 1812). But he tried to keep our ships in port . The policy cost the merchants money just like today. Do we prefer a president just let the nation continue to get punched ?

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