The reason why tarriff talk is just talk is because these countries he wants to place tariffs on would just fight back 999999999x stronger causing economic chaos and skyrocketing inflation, so even though they claim they will place tariffs on this country and that country it will never happen. The risk is too extreme to even Fathom such a possibility Trump launches plan to target countries with new tariffs https://www.bbc.com/news/articles/c360lle165ro
When are you going to stop looking for problems and start looking for opportunities around the whole world? Tariff talks will move stocks, index futures.... So if Trump decides to implement reciprocal tariff on European's pharmaceutical products, luxury things, wine, furniture, those related stocks will move (up and/or down). So open your eyes wide and trade (not complain) accordingly. Do note that the world is volatile. Trump can implement tariff at certain %. He can increase or decrease it anytime he wants.
It is called tightening the screws down and negotiating but don't underestimate the possibility of tariffs being enacted if negotiating fails.
US tariffs on European Union coming up next. After being cut off from the US ATM, NATO now has to pay up for its own defense. Want more war with Russia? Okay, pay for it Europeans. US taxpayers have shutdown the US free monies to defend Europe. China has already put huge tariffs on the European Union. Europe in pretty bad shape now when Germany who has been subsidizing the other European nations is struggling, economically, pretty badly. German businesses going bankrupt. Russian sanctions by the European Union NATO countries, sure did its job. On the Europeans who imposed them. Higher oil prices favor Russia. How did they not know that?
Steel and aluminum already announced at 25% with Canada. I believe it was 10% term one on one or the other and actual steel prices went up 38%, causing many canceled US projects. Lumber also went up a ton ( Cdn lumber stocks actually went way up which is the kind of trade I'm interested in concerning Trump ).
Tariffs work only if there are other sources of the same product, offering it for less. Then, tariff imposed on that product, makes it more costly, driving down demand for it. In the case of Russian oil and natural gas, that is the cheapest Europe can get it. So, they boycott Russia by buying oil and natural gas from China and India which got it from Russia. China and India makes money being the middle man, Russia still sells its oil and natural gas to Europe indirectly. In addition, higher oil prices mean more monies for Russia. Germany destroying its businesses yet, Annalena Baerbock says Germany is doing hunky dory despite the rising number of German businesses going bankrupt.
Across the board tariffs like Trump issued in March 2018 will lead to a recession just like they would have in Q1 2019. Powell backed down from his autopilot QT and decided to lower rates which prevented a recession. If there are tariffs like last time there will be a recession within 2-3 quarters.
In corporate supply chain planning, tariff is freaking real. Even with outsourcing aka EMS, it's not easy to shift manufacturing from one region to another and layer it with technology export restriction is even more difficult. High tech production is not a shed but a billion dollar setup and takes many years to recoup. In business, it's all about margin. https://sg.finance.yahoo.com/quote/AAPL/key-statistics/ AAPL's profit margin is 24%. A 10% tariff on China import will lower down to 14%. By moving from China to India, avoid the 10% and Foxconn is doing the DIFFICULT job of moving the shop. Why difficult? Foxconn stops sending Chinese workers to India iPhone factories: Report - Hindustan Times
Around a week ago some of the US auto makers said if the 25% tariffs go through they would be laying off people within a week. This runs counter to Trump's stated intent to help US automakers. Just like he says he can put 25% tariffs on Canadian Oil but reduce US gas prices 50%. Is there nobody left in govt to explain to him this cannot work ?