Prof G Markets

Why Trump Will Back Down on China Tariffs — ft. Ryan Petersen

288 snips
Apr 24, 2025
Ryan Petersen, the founder and CEO of Flexport, shares his expertise on global logistics and trade. He discusses the far-reaching effects of tariffs on American businesses, notably driving inflation and putting pressure on small enterprises reliant on Chinese manufacturing. Petersen delves into shifting investment patterns, as Chinese funds withdraw from U.S. private equity, and he paints a picture of the evolving supply chain landscape amid ongoing trade tensions. His insights provide a crucial understanding of the implications for future economic relationships.
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INSIGHT

Tariffs Paralyze Small Businesses

  • The tariffs have created paralysis in the supply chain, especially hurting small businesses that rely heavily on China.
  • Large companies can shift production to multiple locations, but small businesses lack that flexibility and face significant challenges.
INSIGHT

Tariff Rates and Consumer Prices

  • New duties impose a 125% tariff on goods shipped from China after April 9th, substantially raising costs.
  • Price increases for consumers will be significant, typically around 30% due to markups and the tariffs combined.
INSIGHT

Tariffs Could Bankrupt Small Businesses

  • If the 145% duty on China persists, around 80% of small businesses relying on Chinese imports could fail.
  • Millions of employees could be unemployed due to price hikes and supply chain disruptions.
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