Politics

(New York)

In a great example of how Trump’s new tariffs on China will reverberate around the US economy, Nike and Adidas are panicking over the new Trump moves. The pair just led a consortium of 173 companies who penned an open letter to the President imploring him to stop the tariff move immediately. Nike and Adidas say the tariffs will be “catastrophic”. Clothing and footwear already endure some of the highest tariffs, so hiking them further will increase costs and create huge logistical complications. The letter summarized their view this way, saying they will be ”catastrophic for our customers, our companies, and the American economy as a whole”.


FINSUM: If you are a company that makes or imports a lot of your merchandise from China, this is going to be a very rough period. We expect the market will start to take this into account as the full impact of the trade war is digested.

(Washington)

President Trump warned yesterday that he hoped the US could avoid a war with Iran. Some of the president’s advisers are more hawkish on Iran that Trump himself. Tensions are rising sharply and Trump is reportedly quite against going to war with the middle eastern state. The White House has been warning about increased threats from Iran, but few details have yet been shred, even with Congress, so for now the specifics are unclear.


FINSUM: Since the details of the threat are not at all known, it is hard to make an opinion on a course of action.

(New York)

President Trump has taken a flurry of brisk actions as part of the ongoing trade spat between China and the US. After hiking tariffs and considering more, Trump now officially took the step of effectively outlawing US business with Huawei. He issued an executive order that gives the Commerce secretary power to review any transactions that could pose a risk to national security. The US Department of Commerce also put Huawei on its “Entity List”, which means US companies will need to apply for a license before doing business with it.


FINSUM: To be completely honest we are quite worried about the implications of this trade war and how it could play out on many fronts. The trade war almost feels like a microcosm of the larger political and cultural leadership struggle between the US and China and that worries us.

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