In response to Trump's tariff storm, the United States opened a hoarding tide!
Us President-elect Donald Trump campaigned for a 10 to 20 per cent tariff on all imports. Typically, the cost of tariffs is borne by importers, who may pass it on to consumers by raising prices.
In order to cope with the risk of possible price increases, American businesses and consumers have recently begun to purchase in advance. The analysis pointed out that the increase in foreign trade activities at the end of the year in the United States may also have an impact on the pace of interest rate cuts by the Federal Reserve.
In response to the tariffs on all imported goods that may be implemented after Trump enters the White House on January 20 next year, US consumers and some businesses have begun to stock up.
Los Angeles-based home appliance company Yedi, which manufactures many of its products overseas, told CBS News that it has been preparing for a Trump victory for the past six months and is rushing to buy appliances from overseas and stock them up while it can afford them.
Recently, many corporate executives said at the earnings conference that if Trump implements tariff policies, he will have to pass on the cost of tariffs to consumers. Daniel, CEO of auto parts company AutoZone, told analysts at the earnings conference in September that he has had experience with the ups and downs of tariff policies over the years and will raise prices in advance in accordance with the practice over the years. The CEO of Columbia Sportswear told the media in October that he was prepared to raise prices if tariffs were imposed. It will be very difficult to keep prices affordable for American consumers.
The wave of stockpiling from American businesses and consumers is expected to lead to a surge in foreign trade activity in the United States before the end of this year, and some analysts pointed out that this may also have an impact on the pace of interest rate cuts by the Federal Reserve.
Sam Stovall, chief investment strategist at the Center for Financial Research and Analysis: We are likely to see stronger-than-expected US import and export activity, strong in December and now in November, which may taper off towards the beginning of 2025, but buoyant foreign trade activity may give the Fed a reason to pause, or at least slow down the pace of rate cuts.
During his election campaign and during his first term in office, Trump has shown an emphasis on tariff policy. He has advocated imposing a percentage tariff on all imports as a way to reduce the trade deficit and encourage companies to produce in the United States. Trump argues that by imposing tariffs, he can protect American businesses from foreign competition and boost the U.S. economy.
Mr Trump specifically targeted China during his campaign, saying he would impose tariffs of up to 60 per cent on Chinese goods and proposing to phase out imports of Chinese goods such as electronics, steel and pharmaceuticals over four years. These policies, if implemented, will have a huge impact on China's exports to the United States and may affect the stability of China-Us economic and trade relations.
The analysis pointed out that what kind of tariff policy Trump will introduce in the future and its specific extent need to be determined by observing its actual action in January next year. During the campaign, Trump advocated tariffs that could dampen GDP growth. However, given that a significant portion of Trump's campaign funds come from Wall Street, analysts believe that he is unlikely to take extreme measures that would upend the market. Instead, Trump's tariffs may be seen more as a tactic to negotiate with other countries.
In order to cope with the risk of possible price increases, American businesses and consumers have recently begun to purchase in advance. The analysis pointed out that the increase in foreign trade activities at the end of the year in the United States may also have an impact on the pace of interest rate cuts by the Federal Reserve.
In response to the tariffs on all imported goods that may be implemented after Trump enters the White House on January 20 next year, US consumers and some businesses have begun to stock up.
Los Angeles-based home appliance company Yedi, which manufactures many of its products overseas, told CBS News that it has been preparing for a Trump victory for the past six months and is rushing to buy appliances from overseas and stock them up while it can afford them.
Recently, many corporate executives said at the earnings conference that if Trump implements tariff policies, he will have to pass on the cost of tariffs to consumers. Daniel, CEO of auto parts company AutoZone, told analysts at the earnings conference in September that he has had experience with the ups and downs of tariff policies over the years and will raise prices in advance in accordance with the practice over the years. The CEO of Columbia Sportswear told the media in October that he was prepared to raise prices if tariffs were imposed. It will be very difficult to keep prices affordable for American consumers.
The wave of stockpiling from American businesses and consumers is expected to lead to a surge in foreign trade activity in the United States before the end of this year, and some analysts pointed out that this may also have an impact on the pace of interest rate cuts by the Federal Reserve.
Sam Stovall, chief investment strategist at the Center for Financial Research and Analysis: We are likely to see stronger-than-expected US import and export activity, strong in December and now in November, which may taper off towards the beginning of 2025, but buoyant foreign trade activity may give the Fed a reason to pause, or at least slow down the pace of rate cuts.
During his election campaign and during his first term in office, Trump has shown an emphasis on tariff policy. He has advocated imposing a percentage tariff on all imports as a way to reduce the trade deficit and encourage companies to produce in the United States. Trump argues that by imposing tariffs, he can protect American businesses from foreign competition and boost the U.S. economy.
Mr Trump specifically targeted China during his campaign, saying he would impose tariffs of up to 60 per cent on Chinese goods and proposing to phase out imports of Chinese goods such as electronics, steel and pharmaceuticals over four years. These policies, if implemented, will have a huge impact on China's exports to the United States and may affect the stability of China-Us economic and trade relations.
The analysis pointed out that what kind of tariff policy Trump will introduce in the future and its specific extent need to be determined by observing its actual action in January next year. During the campaign, Trump advocated tariffs that could dampen GDP growth. However, given that a significant portion of Trump's campaign funds come from Wall Street, analysts believe that he is unlikely to take extreme measures that would upend the market. Instead, Trump's tariffs may be seen more as a tactic to negotiate with other countries.
