How Will the China Tariffs Affect the FAANG and other Stocks?

[william the wie]

The left coast makes a lot of money on Chinese imports and much of that will vanish leading to a shortfall in state and local tax revenues. Will it be bad enough to have major consequences on where companies reside for tax purposes? Also the major companies will move their supply chains to reduce damages. That will hit China hard but how fast will those effects hurt China and its economic growth? So, which set of effects will predominate and how long will it take for these changes to damp down to a new normal for silicon valley?

 

[Andylusion]

Unlikely to have any long term significant effect. As fewer boats are in port, the ports will lower their fees. As the fees go down, and it is cheaper to deliver goods in port, more people will ship there.

Basic economics of supply and demand.

Now if Trump jacks up tariffs on all imports, then you could see a significant decline.