r/investing • u/ExtentFuture4133 • 2d ago

China retaliates with 34% tariffs on all US products

At the time of writing this Dow futures are losing 1400 points. Apple is down another 4.77% pre-market to $194, as it has 90% of iPhones assembled in China.

S&P 500 futures are down 3.5% and Nasdaq 100 futures down 4%. Us 10 yr at 3.905%. Vix volatility index spikes to 42.82, highest level since Covid

https://www.cnbc.com/2025/04/03/stock-market-today-live-updates.html

It is going to be an interesting day.

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u/jeffreynya 2d ago

when they talk about manufacturing, what do they really mean? Just Auto, chips or what. If the USA has to build factories to produce every single plastic part or product its just not possible in any meaningful timeline. I can imagine factory's that have to try and build 1000's of different items are not just simple thing to setup. It took decades for some stuff to move away and it will take decades to bring most of it back, it will cost trillions and in that time everyone will just stop trading with us for all but essentials we can only provide, and that list is getting smaller every day.

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u/Acolyte_of_Swole 2d ago

We're putting assloads of tariffs on everything, including things we cannot produce here. There's no thought put into it.

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u/tomoldbury 2d ago

Tariffs on avocados; famously grown in the USA.

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u/advester 2d ago

He has stated that he longs for the days when the govt was paid for with tariffs, not income tax. Tariffs aren't a means to him, they are the ends.

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u/Useful-ldiot 2d ago

You can spin up full scale manufacturing relatively quickly, meaning 5-10 years. But yes, it will cost a lot to do so.

1) the consumer will pay that cost in price of goods sold.

2) the consumer will also pay the increased cost while the new manufacturing centers are built.

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u/rice_not_wheat 2d ago

I question whether or not it can even be done. US is already at full employment and is making it harder to move here. Who's going to work in these factories, and who's even going to build them?

Why build a factory in the US just to face trade barriers on inputs? Build in Mexico, get the labor, and avoid the trade barriers.

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u/mnradiofan 2d ago

And you'll continue to pay that cost as long as it's 5% cheaper than the alternatives.

But most companies won't even begin that process without assurances that this climate will continue for 20-25 years so they have time to recoup their investments.

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u/Equal-Ruin400 2d ago

It’s something we have to do. The world is getting more dangerous, and war is just around the corner. It doesn’t make sense for the US to rely on its enemies for manufacturing.

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u/jeffreynya 2d ago

It’s not possible to bring back everything. The chips act got use going on chips and we could have made a great deal with Canada for minerals. But no, we just punch everyone in the face and say fu. It’s all so stupid

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u/Equal-Ruin400 2d ago

The US doesn’t make anything anymore. We only export services. This can’t continue, drastic measures need to be taken considering there may be a war with China this decade over Taiwan.