What to Know About Who Pays the Higher Costs of Trump's Tariffs
Shoppers buying clothes from retailers in China might soon pay more than twice as much, now that a special exemption for lower value imports is disappearing. And companies involved in international trade must now make even more complicated calculations to decide how much they owe in tariffs.
'Maybe 3 percent of the people are well-prepared,' said Jeremy Page, a founding partner of Page Fura, an international trade law firm, whose clients include large companies. 'And that might even be charitable.'
Imports from China have been hit with tariffs of 145 percent. That means for every $100 worth of goods a business buys from that country, it has to pay $145 to the federal government. Goods from most other countries have a new 10 percent tax, though that could rise if the countries do not reach trade agreements with the United States by July. And there are separate tariffs on cars, steel and aluminum. Mr. Trump has also said he wants to impose new tariffs on pharmaceuticals and computer chips.
Mr. Trump contends that the tariffs will encourage businesses to produce goods in the United States. The tariffs on Chinese goods will almost certainly reduce imports from the country. But American businesses will not be able to quickly get goods from elsewhere — U.S. imports from China totaled $439 billion last year — and they will end up owing huge amounts in tariffs.
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A Trump tariff letter is the best news this Southeast Asian junta has had in a while
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Since 2021, PayPal Holdings (PYPL) has been a frustrating hold for investors, with its stock price stuck in the proverbial doldrums despite its legacy name and leading position in digital payments. While the stock did peak at over $300 back in 2021, it has hovered — or, more accurately, flatlined — around the $70 mark for four long years, with the lack of growth and rising competition in the fintech space discouraging investors from re-entering the market. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. But with strong free cash flow and shares trading at deep value levels, there are fresh hopes for a rebound. Given the confluence of factors and potential catalysts on the horizon, I am opportunistically Bullish on PYPL stock. 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Yet, its most recent quarter showed resilience, with $417 billion in payment volume, decent transaction margin growth, and Venmo's breakout performance. Then, its robust free cash flow and $6 billion in planned buybacks come together to make it a deep value play. If PayPal scales innovations like Fastlane and BNPL while navigating headwinds, it could shake off its slump and reward those betting on its comeback.
