The Fox Business panel discussed the recent imposition of 34% retaliatory tariffs by China on all U.S. imports, which follows President Trump's global tariffs. Experts indicated that importing companies like Apple and Tesla will face significantly lowered profit margins or risk losing orders from Chinese consumers. The panel members, including Dennis Gartman and John Lonski, expressed concerns that this retaliatory action could lead to a damaging trade war. However, there was hope that diplomatic resolutions may ultimately prevent further economic fallout.
Right now, angry heads are prevailing and circumstances are prevailing that send stock prices much lower than they are right now, Gartman said during the discussion.
The retaliation measure taken by China is what worries markets a great deal because this type of retaliation is the early indication of a trade war and a trade war can be very destructive.
The companies either have to go ahead and accept a much lower profit margin, even sell products at a loss...
My sense is that cooler heads will eventually prevail in the Trump administration and elsewhere and at some point the parties will get together.
Collection
[
|
...
]