Strategy Simplified S17E24: U.S./China Trade Tensions Thaw - What's Next? (Market Outsiders: May 12, 2025)
May 12, 2025
U.S.-China trade tensions are easing, leading to dropped tariffs and fresh negotiations. Business leaders are reevaluating their strategies in response to these changes. The discussion highlights how major companies, particularly Microsoft, are affected by the evolving trade landscape. Insights about effective investment strategies post-liberation day reveal potential for higher returns. The podcast also digs into the complex dynamics of tariff policies, their influence on service-based businesses, and the broader implications for supply chains and innovation.
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US-China Tariff Reduction Insight
- The US and China have agreed to reduce tariffs significantly, but the trade war isn't over yet.
- Tariffs are down from over 140% to about 40%, signaling a positive but incomplete thaw.
Long-Term Investing Advice
- Stay invested for the long term despite short-term market shocks.
- Avoid trying to time the market and maximize your time invested to win in the long run.
Trade Impact on Tech Services
- Tech companies like Microsoft don't import directly but are impacted by trade via their customers.
- Their revenue can slow if their enterprise clients face import or trade disruptions.