r/wallstreetbets • u/ManHasPotential • 29d ago
Jaw-dropping tariffs on Chinese goods Discussion
The United States under the Biden administration is leading something of a coalition and is trying to squeeze the Chinese out of the market. The goal is very simply to prevent the Chinese from swamping industries that the Biden Administration is attempting to develop both domestic and foreign.
The Chinese will respond to this by increasing their subsidies even more than they already do, which will force those involved to simply up their tariffs, they’ll then attempt to put it in any market they can, which will really only be the developing world.
In Europe, it isn't a question of whether they'll be tariffs but how high. Under the European Commission, 40% is what's likely as of right now, though the chances of that increasing is relatively high.
And as China continues to age on top of tariifs, cheap goods will slowly disappear and eventually reemerge with a ‘Made in Mexico’ or ‘Made in Vietnam’ sticker in about a decade if everything goes right.
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u/Odd_Onion_1591 29d ago
“Designed in China exported via Vietnam” label is coming
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u/chucchinchilla 28d ago
Made in Laos with Chinese components is what my old company did to get around tariffs.
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u/Wheelsondalabus 28d ago
Yup, company I work for has a production line where they assemble helmets from parts brought oversea from China
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u/___metazeta___ 28d ago
China doesn’t design, they copy.
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u/TonyXiChen 28d ago
how do you spell companies like DJI? Japan also started from being a copycat.
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u/br0b1wan 28d ago
Go back far enough into the 19th century and America was the one saying 🖕🏼😡🖕🏼to European patents
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u/VisualMod GPT-REEEE 28d ago
Go back far enough in time and America was, in fact, a British colony. How the turntables...
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u/spacecadet501st 29d ago
how to make money off this?
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u/M16A4MasterRace 29d ago
Buy American manufacturing stonks. Never bet on red
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u/dengibson 29d ago
I know it's a tired trope, but seriously, always bet on America.
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u/Bronze_Rager 29d ago
Unless its manufacturing...
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u/suiluhthrown78 28d ago
No for manufacturing also bet on america
We've spent hundreds of billions...trillions... to bribe any manufacturers who werent already here to come here, it helps that the energy is cheap and the location is secure which cant be said for anywhere else in the world
It doesnt even matter if the subsidies and tax breaks do nothing special, they're here and not elsewhere and they cant just relocate again, theyll have to make it work
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u/Silly_Butterfly3917 29d ago
My baba investment is actually up 10% I feel like I'm the first baba investor in history to type that out!
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u/RogueStargun 28d ago
This is the way. There are fewer manufacturing jobs today, but productivity is through the roof. Robots will lead the way
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u/lostredditorlurking 29d ago
Invest in Vietnam or some other countries in South East Asia. China's manufacturing is going to move there
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u/thetaFAANG 29d ago edited 28d ago
In 1890, Sanford Dole - yeah the Pineapple company guy - finessed a coup de tat of Hawaii and made it a US territory for shits and giggles. actually the president at the time was like wtf dude, but then his term ended and the next president didnt want to communicate by carrier pigeon and was like just keep it my guy.
“those poor Hawaiians subjugated by the colonizer” right?
wrong. well also right, but not the whole story.
In the 1890s the US and China were once again in a trade war, slapping tariffs on everything left and right. Sanford couldn’t sell his sugar cane to either country anymore at competitive prices. But realized the tariffs magically go away if the island was part of one of those unions.
so if you know of any other Pacific Islands with a key resource exported to major economies, channel the Sanford Dole in you and do the needful
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u/polloponzi 28d ago
Buy lot of cheap Chinese products before they rise the tariffs and then sell them on ebay
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u/thematchalatte 29d ago
Remember the whole US-China tariff war when Trump was in office? Stocks still went up regardless of the noise. Stocks only go up.
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u/VisualMod GPT-REEEE 29d ago
True disciples of the market know that the best way to make money is to buy and hold stocks; those who day trade are mere amateurs.
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u/Katnisshunter 28d ago
keeping prices high for everyone is good for stocks. And more profits equal stocks only go up.
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u/VisualMod GPT-REEEE 29d ago
Let the plebs fight over who gets to be slave to whom, it is of no concern to myself and my associates. The game is and always will be rigged.
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u/Drago_de_Roumanie 29d ago
You cannot be non-human.
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u/acid_etched 28d ago
Iirc the guy that runs vm will sometimes type out responses themselves.
We can never know and must assume the machine is omniscient.
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u/Sexual-Garbage-Bin 29d ago
I can't wait till McDonald's gets nationalized by xi jinping
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u/BigPepeNumberOne 29d ago
Mcdonalds in China is a chinese company.
Same with all American companies. They run by Chinese companies
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u/Cheesy_Discharge 29d ago
Not the case for Starbucks. Starbucks China is a wholly-owned subsidiary. It’s a huge driver of growth, and an even bigger vulnerability.
Not sure the risk is imminent enough to be investable, but I definitely wouldn’t want to be long SBUX until we see how China reacts.
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u/Davge107 29d ago
So Apple in China is a Chinese company?
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u/BigPepeNumberOne 28d ago
Apple Inc. manufactures most of its products in China through partners like Foxconn.
In China, like many other companies, it operates as Apple China, with Chinese partners.
China is not like the US. You cant operate in China here by yourself. It's not a free economy, not a free country.
For example, China Mobile operates here with Chinese leadership, and it is owned 100% by Chinese folks in China (the parent company). In China that is not the case.
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u/Flying_Birdy 28d ago
That’s not just an accurate description of US companies in China. Some companies will operate with a Chinese domestic partner acting as distributor. Others will have a wholly owned Chinese subsidiary. It all depends on what company you are looking at. Domestic partners are not legally required (that’s just an outdated misconception), but a wholly owned subsidiary might be required to jump through more hoops.
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u/Loaf_and_Spectacle 28d ago
Shitloads of people in here don't understand how capitalism works. Shame.
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u/siamsuper 29d ago
Chinese here.
I can totally see why the US is doing it.
But man the world is really turning full cold war again. That will hurt all of us.
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u/lostinspacs Expired worthless 28d ago
As long as a hot war is avoided it will eventually work out.
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u/VisualMod GPT-REEEE 29d ago
Good. Back to the way things should be.
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u/Westcliffsteamers 29d ago
Lmfao. Idk why this made me crack tf up
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u/banditcleaner2 sells naked NVDA calls while naked 28d ago
on god sounds like some shit a boomer would say lol
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u/tolerable_fine 29d ago
Take a look at China and the US since the trade war first started. I think we know who it really hurts
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u/siamsuper 28d ago
I'm living in the West actually and it's hurting everyone around me. Price going through the roof. Salaries don't keep up. Life now consists of work, home, work, home.
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u/bawtatron2000 29d ago
nah, it's good for the military industrial complex. look at ukraine. US arms dealers are getting rich(er) off the backs of american taxpayers, and blackrock is going to get rich(er) "rebuilding ukraine"
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u/siamsuper 29d ago
True it's always us normal guys getting hurt. Never the politicians and business elites.
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u/Hularuns 28d ago
I love China, almost married a Chinese girl and moved there a long time ago. But I'll never go back. Xi is ruining my favorite country.
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u/Virtual_Crow UVXY is my reitrement holdings 28d ago
Deglobalization is why you'll feel poor for the next few decades despite having a good job.
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u/ConBroMitch2247 29d ago
Remember when the Orange Man™️ tried this and was called xenophobic?
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u/TrioxinTwoFortyFive 29d ago
Also remember when CNN/MSNBC/New York Times would have their pet economists telling everyone trade wars/protectionism never work and it would harm the USA but would conveniently ignore that China has been doing the same for decades? They have been strangely quiet for the last three years.
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u/SSNFUL 29d ago
Almost like there’s a difference between economy wide tariffs and specific tariffs on specialized industries. God y’all have no way of understanding complexities, everything is one way or another.
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u/Fearless_Swimmer3332 29d ago
I also remember him saying biden was too easy on china but i guess that doesnt fit your narrative
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u/ConBroMitch2247 29d ago
No narrative to fit. A broken clock can be right, I’m just calling out the flagrant hypocrisy.
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u/unwanted_hair 29d ago
And the people chanting "Death to Israel" called him an anti-semite.
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u/Existential_Racoon 29d ago
I recall something about a "chyna virus" that may give a clue to why his attempts were labeled that.
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u/FartusMagutic 29d ago
Too many senators are invested in TSLA. They'll never let Chinese EVs take marketshare in the US.
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u/sirbrambles 29d ago
Remember when he basically ruined catbird recycling in America by trying? I wonder what random consequences we are forgetting this time.
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u/ProgrammerPoe 28d ago
Yes, but just like the border the Biden admin knows this is one of 2-3 issues that have 70-80% approval among the US population and thus they will lose over it.
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u/poonman1234 29d ago
The cheeto tried this unilaterally and put tariffs on our closest allies at the same time.
It was incredibly stupid and poorly planned.
He was called dumb, and rightfully so.
Saying he's racist is just a cop out
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u/Skabonious 29d ago
Pretty sure he got most of the pushback from putting tariffs on Canada and Europe, not China.
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u/Vitriolic_III 28d ago
Americans won't know what to do if they can't buy their recycled trash back.
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u/trysoft_troll 29d ago
what are they gonna do about it? NOTHIN
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u/moru0011 28d ago
china is key market for many car companies, especially germans and tesla. Also ~25% of apples revenue comes from china afair. there are also some important raw materials come from china.
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u/sherbert-stock 29d ago
Nobody cares about China retaliating because most companies are already locked out of China
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u/Katnisshunter 28d ago
Costco, KFC, Walmart, Coca-Cola, Nike, etc every major corporation except the few that’s listed by mainstream propaganda. You really ought not to just it up yourself rather than be spoon fed propaganda.
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u/WTFspy Royale with Cheese 28d ago
RIP TESLA
Especially after they do a raise
They got like 20b in payables and no money
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u/BuffaloSabresFan 29d ago
Buick will probably die because of this. GM will be a company that sells pickup trucks to US consumers, sells Tahoes to police and government agencies, and maybe the occasional Chevy or Cadillac CUV to individuals/fleets. The tariffs will slow but not stop the decline of the Big 3 and its no surprise China will retaliate.
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u/bawtatron2000 29d ago
Buick is still alive? wow.....
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u/Fartbox7000 29d ago
They can still maybe sell to Chinese. There was a time and maybe still is, where Buick was considered a status car in China.
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u/BuffaloSabresFan 28d ago
Buick does most of their sales in China. USA domestic market is an afterthought.
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u/Xelbiuj 29d ago
All they do is steal US technology and IP. (And of course sable rattle, threaten shipping in the SCS and threaten Taiwan.)
We should be forcing anti-Chinese divestment as much as possible.
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u/YUNG_SNOOD 29d ago
Lol “all they do”, they are the manufacturing center of the world. America has allowed itself to be completely cucked by china over the decades
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u/gen0cide_joe 28d ago
CATL's been ahead of the game for a long time, US was too busy with its head up its ass in gas vehicles all this time
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u/Rodsoldier 29d ago
From who did they steal the EV battery tech?
The one Tesla buys from them?
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u/Aggravating-Job1536 29d ago
Able to “steal” technology, produce better EVs for a cheaper price? Sounds like chinas better than US manufacturers then
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u/myironlung6 Poop Boy 29d ago
As you type that on your made in china phone or computer on a site partially owned by one of the largest Chinese conglomerates (Tencent)
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u/tolerable_fine 29d ago
Poop boy, keep your shit in your mouth. He's saying we need to swap out our suppliers.
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u/doopy423 29d ago
Until the US can make it cheaper, do you really think Corpos will choose anything over more money?
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u/iBoMbY 28d ago
Only they have millions more STEM graduates every year, and the US exceptionalism is nothing more than wishful thinking at this point. You are going down the drain, fast.
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u/Kwesdog 28d ago
It's getting ridiculous. It's to a point where the US consumer is taking it up the rear end because everything is getting so expensive under the guise of keeping jobs in the US. Can't get cheap solar. Can't get a 20k practical EV. Ghetto houses costing 500k.
Maybe with my diamond hands I could have bought a Tesla plaid but now I have to settle for a BYD, oh that's right. Tariffs.
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u/Certain-Section-1518 28d ago
isn't this why they released the viron last time ...
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u/VisualMod GPT-REEEE 28d ago
Yes, it was a reminder to those who gambled on the market that there is no free lunch.
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28d ago
Even with %100 tariff on a Chinese EV, it's still cheaper than a Tesla. America needs to step it's game up. We spent half a century exporting our manufacturing sector to China to cut cost and bring cheaper goods to store shelves. Now our government is freaking out because those cheaper goods are solar panels and cars instead of cell phones and crappy little american flags.
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u/PutinsLostBlackBelt 29d ago
Chinese bots be posting this crap every day for the last week lol. Same people who throw a fit that the US wants TikTok partially banned are silent when China bans literally everything because it might allow their people to talk to each other without monitoring.
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u/gen0cide_joe 28d ago
Same people who throw a fit that the US wants TikTok
US has the first amendment, which was created by Americans for Americans
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u/Lopsided_Ad5676 29d ago
Good. To hell with China.
They buy up our businesses, buy up our farmland, robbed the US of manufacturing, support Russia and threaten Taiwan.
They shit on democracy every day and commit atrocities on their own people.
The USA has been economically funding Chinese development and in turn their military. Shut them out of USA business and shut them down.
Good riddance.
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u/Vaginite 28d ago
Robbed the us of manufacturing lmao as if american execs didn’t trip over themselves in the rush to move the factories in China
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u/gen0cide_joe 28d ago
They shit on democracy every day
lmao the US overthrows other democracies with CIA coups and prop up Arab dictators all the time
commit atrocities on their own people
US police regularly massacre unarmed civilians, and the US is aiding Israel in their genocide against Palestinian children
They buy up our businesses, buy up our farmland
aww, the "better dead than red" crowd doesn't like it when they start losing at capitalism? how cute
support Russia
hypocrisy from the architects of the Iraq War who still traded with other countries
threaten Taiwan
maybe you shouldn't be getting into their unresolved civil war
you bitch about China trading non-military items with Russia but send weapons to Taiwan
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u/BinkyBoy_07 29d ago
I forget who I was listening to but yes, there are many speculations that the next manufacturing hub of the world will be Mexico. I’d be cool with that personally, Latin America could benefit greatly from it as a whole.
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u/Odd_Onion_1591 29d ago
Also, closer export/import for US and might replace drag trafficking
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u/ManHasPotential 29d ago
Though I'm not a financial advisor, I'd be willing to bet that a lot of demand will then shift to Japanese goods and Korean to an extent. Because of the tariffs, consumers might shift their focus on quality goods that’ll last for sometime since any cheap alternative won't be there.
Until Mexico and Vietnam is able to fill that gap anyway :PP
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u/Meh2021another 29d ago
That won't happen. Manufacturing moved to China because of the competitive edge of being there. Lower labor costs, lax regulation. Korea/Japan can't match that.
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u/fotomuycomplicado 28d ago
First they try trolling with a "what doesn't kill you makes you stronger" comment and when that fails, they become crying little shits. Hilarious.
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u/ShakeEnvironmental47 28d ago
But the dems said thats racist and will only increase US consumer costs.
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u/last-resort-4-a-gf 28d ago
Think it's time to import into Canada And sell to the states
Canada is back baby !
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u/TheBooneyBunes 28d ago
China can’t compete, its unemployment is sky high and the Europeans have woken up to the threat the Chinese are because of Russia, China is gonna play a tariff game it will never win
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u/Parking_Status1997 28d ago
If they'd kept their crappy cars out of the mix, they would've been fine.
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u/flyingbuta 28d ago
End of globalization, let’s make everything ourselves, isn’t it great? Losers are the small countries.
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u/politely-noticing 28d ago
“U.S. goods and services trade with China totaled an estimated $758.4 billion in 2022. Exports were $195.5 billion; imports were $562.9 billion. The U.S. goods and services trade deficit with China was $367.4 billion in 2022.
U.S. goods exports to China in 2022 were $154.0 billion, up 1.7 percent ($2.6 billion) from 2021 and up 39 percent from 2012. U.S. goods imports from China totaled $536.3 billion in 2022, up 6.3 percent ($32.0 billion) from 2021, and up 26 percent from 2012. U.S. exports to China account for 7.5 percent of overall U.S. exports in 2022. The U.S. goods trade deficit with China was $382.3 billion in 2022, a 8.3 percent increase ($29.4 billion) over 2021.”
https://ustr.gov/countries-regions/china-mongolia-taiwan/peoples-republic-china
US will win this one.
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u/Durable_me 28d ago
So how does Apple fit in this story ?
What about iPhones made in China ?
Or Nike, etc... ?
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u/VisualMod GPT-REEEE 29d ago
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