The United States Announces! China Responds to the Exemption of "Reciprocal Tariffs" on Some Goods, Wall Street's warning!

 

The new tariff guidelines also include exemptions for other electronic devices and components, such as semiconductors, solar cells, flat-panel TV displays, flash drives, memory cards, and solid-state drives for data storage. It is reported that this tariff exemption applies to all countries affected by Trump's so-called "reciprocal tariffs."

 

Some analysts believe that one of the purposes of Trump brandishing the "tariff stick" is to bring back the U.S. manufacturing industry. However, Wall Street is not optimistic about this. A latest report released by Bank of America warns that if Apple moves all iPhone production to the United States, the cost will soar by 90% and it will face logistics challenges.

 

In addition, Dan Ives, a senior analyst at Wedbush Securities who has been bullish on U.S. technology stocks for a long time, said in a podcast program that these tariffs may set the U.S. technology industry back by a decade. He also predicted that 15% to 20% of the capital expenditures in the U.S. technology industry have been automatically suspended.

 

On April 12, as reported by the Global Times citing the latest reports from American media such as CNBC, smartphones and computers will not be affected by the Trump administration's "reciprocal tariffs" policy according to the latest guidelines of the U.S. Customs.

 

 

It is worth noting that it is reported that this tariff exemption applies to all countries affected by Trump's so-called "reciprocal tariffs."

 

In addition, CNBC mentioned that many electronic products, such as Apple's iPhone, are manufactured in China, but the report did not mention whether Chinese-made electronic products are within the scope of exemption. The technology website wccftech stated, "According to our interpretation of the document, there is no clause targeting China in the exemption provisions, which means that smartphone and personal computer products from this region will not be subject to a 145% tariff. This is a significant development."

 

Previously, a spokesperson for China's Ministry of Commerce responded to the U.S. exemption of "reciprocal tariffs" on some products: "We have noticed that this is the second adjustment of the relevant policies since the U.S. side suspended the imposition of high 'reciprocal tariffs' on some trading partners on April 10.

 

It should be said that this is a small step for the U.S. side to correct its wrong practice of unilateral 'reciprocal tariffs.' Issuing the so-called 'reciprocal tariffs' with an executive order not only violates basic economic laws and market laws but also ignores the complementary cooperation and supply-demand relationship between countries.

 

Since the 'reciprocal tariffs' were introduced on April 2, they have not solved any problems of the United States itself. Instead, they have seriously disrupted the international economic and trade order, severely interfered with the normal production and operation of enterprises and the consumption of people's daily lives, doing harm to others without bringing any benefits to itself."

 

The market generally believes that one of the purposes of Trump brandishing the "tariff stick" is to bring back the U.S. manufacturing industry. However, for U.S. technology giants, this is extremely difficult.

 

A latest report released by Bank of America warns that if Apple moves all iPhone production to the United States, the cost will soar by 90% and it will face logistics problems.

 

The team led by Bank of America analyst Wamsi Mohan wrote in a report to clients, "Just because of the higher labor costs in the United States, the cost of the iPhone is likely to increase by 25%."

 

On April 11 local time, Dan Ives, a senior analyst at Wedbush Securities who has been bullish on U.S. technology stocks for a long time, said in a podcast program, "In my 25 years in the industry, this is the scariest moment I have ever seen. In my opinion, these tariffs may set the U.S. technology industry back by a decade."

 

Based on his conversations with hundreds of investors, Ives predicted that 15% to 20% of the capital expenditures in the U.S. technology industry have been

automatically suspended.

 

Facing the current situation, Ives recommends that investors turn to more defensive technology stocks. He believes that Microsoft and Meta will perform better than NVIDIA and Apple.

 

 

Ives believes that although NVIDIA's stock price has fallen sharply, its future profit growth expectations are still too high; he is cautious about Google's long-term prospects and believes that it needs to make a breakthrough in the field of artificial intelligence to resume growth.

 

Meta may be more resilient in the advertising business, but its investment in the metaverse may be affected by the market environment; Amazon's retail business may face challenges, but its cloud computing business, AWS, remains a bright spot.

 

It is worth mentioning that Ives has always been regarded as a firm bull on Tesla. However, this time he is the most pessimistic about Tesla among the "Magnificent 7" stocks, believing that its brand has been severely damaged and its market share may continue to decline.