Posts Tagged ‘Tariffs’

Last week was a helluva week:

Tariffs… almost every single person in the world screaming “THEY’RE BAD!”… yet, we have more of them now*

Quitting… Gary Cohn resigns as White House chief economic advisor… something to do with the working dynamic he had with Trump

More quitting… rumors that Trump is going to “clean house” re: his staff… after such a short time in office, that doesn’t seem quite right

Meeting… Trump and Kimmy of North Korea are going to meet… then conditions to meet seem insurmountable

Scandal… given Stormy Daniels developments, looks like Trump might have some ‘splain’ to do to Melania… and the American people

Campaigning… Trump is helping out some special election in Pennsylvania… and overtly reminds us what an immature, embarrassing, divisive 4th grader we have for a President

The market should have been roiled (I love saying that :)… but we had an interesting jobs report on Friday:  More jobs… which is good… but less pay… which apparently is also good (although it sounds counter-intuitive) because it keeps inflation in check… which may keep rising interest rates in check.

All of those things should have meant “off-setting penalties” (so to speak).  But instead we rallied sharply on Friday… almost like the market said, “who cares how screwed up our politics  are?!”

Feels more manic than normal to me.

 

*Disclaimer:  If the U.S. is really getting jerked around in international trade, then I like what Trump did.  (Here and here.)  Problem is always can you really believe Trump?

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Trump is getting blasted for — all of a sudden — unilaterally — announcing he’s levying a 25% tariff on steel and 10% on aluminium.  Outside of the steel and aluminium industries, you’d be hard pressed to find anyone supporting his actions.  Heck, there are even executives within those industries that don’t support his actions.

I disclaimed in my previous post on this topic that I’m no expert on trade, but the more I hear about how the rest of the world treats us in trade, the more I continue to agree with Trump that it’s time to create a more balance playing field.

But now, I’m even liking the way he’s doing it.

Apparently many of the trade structures in place had their origins in the 40’s… for example, helping a war-torn Japan and Germany get back on their feet (and not repeating the mistakes of the aftermath of WWI), helping an embryonic China move into the modern world, and so on.

Huh?  That’s was about 80 years ago!  For the last decade I’ve watched — first hand — tech companies tip-toe around China… either burdened with requirements that make us non-competitive… or, worse, getting blocked altogether.

I’ve been writing about Autodesk recently.  It occurs to me that they can be, in fact, the poster child for this entire topic!

AutoCAD is the de facto standard technology tool for construction all around the world — except China.

Want proof?  While China is always a big topic in many companies’ earnings call, the word “China” wasn’t even mentioned in Autodesk’s last two earnings transcripts (here and here).

Why?  Because there’s a Chinese company called ZWCAD that makes an AutoCAD-clone product and guess which product the Chinese government wants sold in China?

A Chinese company, by the way, that was caught red-handed stealing AutoCAD intellectual property.

So I continue to be with Trump on this issue… and upon further reflection am happy he’s playing the “mad man” card and throwing it directly in their grill.

America is, after all, the world’s biggest market.  If we’re really getting taken advantage of, then it’s time we stopped getting taken advantage of.

I’m very surprised I’m about to say this — but maybe this one is within Trump’s wheelhouse:  His juvenile, bullying, play-ground antics may be the most effective way — may be the only way — to get everyone on the playground to play fair.