Yeah, it was rhetorical. LOL. But I'm sure you knew that.
That 2017 announcement was so Apple could get exclusions from the first set of tariffs. The most recent announcement is more of the same, probably? Would love to be wrong, although most of the money is going to be in R&D which is already done in the US. (another amazing example of controlling the narrative). Mostly I'm responding to another claim of tariffs being the proverbial "free lunch". Let's get 'em started.
I see why you sent me this way. ETA-i think we agree?
Tariffs work, or they wouldn't be what they are. Are they the best tool for the job, no not at all. I'd wager tariffs themselves, the instrument, is awful. About right there with a VAT. Very generally speaking.
However, some tools are great at things they weren't made for doing, like threatening, squeeze and negotiating.
Eventually, administratively (which is what other countries strategically have going against us, time on the election clock) the usefulness wanes. It's a clock MGMT game when you start with tariffs.
Which oddly, makes them easy to hedge against (apple-like saj99 stated) in the pro column, and longing against (china-currency valuation games) in the cons column. But again, time. Time works against all parties.
China etc knows at max, 4, maybe 8 years, low odds of 12. Their issue, my viewpoint, they've manipulated too much too frequently lately (as in couple decades) to continue the offensive. However. Devaluing comes at a risk too... Ever had a stock squeezed on you, and squeezed, and squeezed... resistance vs support levels....squeeze too much and pop some confidence to boot and wallah. So what they do and how long this goes will be interesting. My Chinese counterparts aren't happy, though they are happy it's swelled demand to a point...very niche market, so probably not applicable as a macro trend
Apple etc knows also. At minimum next earnings report, at max next new iPhone release. They just have to move quick and ride the momentum up, stay out of the bad news. After that, goldfish kicks in, fanbois hit the new releases, stock up. Erryone happy.
Trump etc knows also, they have a finite time to attack, while simultaneously defending it against the Dems, knowing one domino fell. If it's two or 3 more it's enough to say see, I got a few trillion invested stateside...win...
It's a ho hummer for sure. Everyone's shorting and longing and squeezing eachother, that all are making money, but at different points and different gains and different levels.
The people pay, just like companies don't pay taxes-people pay.
So. Tariffs in my opinion are awful financial instruments, pretty bad but somehow effective at stirring the markets.
