If a REAL US/China trade-war develops, what impact to this industry?
Aug 6, 2019 at 11:09 AM Thread Starter Post #1 of 11
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I'm not an Economist, but I play one on TV...

Joking aside, I AM an EMBA grad and I got to thinking about what would happen on a macro level to this industry from all angles (consumer, manufacturers, retailers, R&D, etc) if a protracted trade war were indeed to develop. Part of my interest comes from the fact that it's already a very, very niche industry and wouldn't have the levers to manage a trade war as smoothly as the general economy.

I should add: not looking for a "political" discussion/flame war. Just asking a "what if"...
 
Aug 6, 2019 at 11:35 AM Post #3 of 11
I'm no economic expert but most of the audio gear in the midfi and budget segment are made in China, so I guess prices of such gear to US customers might be more expensive if there is retaliation between the two countries. Maybe prices might not be changed for nonUS areas, I'm not sure. But the world is now very globalized so any shake up in one market is bound to affect everywhere.

Whatever the case I personally feel nobody wins in a trade war, especially us consumers at the bottom of the foodchain.
 
Aug 6, 2019 at 11:53 AM Post #4 of 11
China playing for trump loss in 2020. Not that Dems are better for trade per se but trump is just that bad. Canada is playing for trump loss in 2020. So we pretended to ratify trumps usmc agreement knowing it will not be ratified and trump loses 2020. Granted trump can get USA in lots more trouble before he loses and gets perp walk for obstruction. But no one escapes China USA trade war. Fortunately the USA family will be hit first with 1200$ sucked out of there pockets by Christmas.so that’s a direct hit to his uneducated white male base. Well that and wannabe millionaires.
 
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Aug 6, 2019 at 12:33 PM Post #5 of 11
Many don't like him. But he has many supporters as well. As long as many Americans don't complain about high prices he can win. As long as he can keep the price of gasoline low and the interest low he's doing good to many voters even if he is not popular. The dems think that they will win easily.

Oh oh, this is turning out to be a political discussion.

IBTL
 
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Aug 6, 2019 at 12:46 PM Post #6 of 11
Interesting points... and now that I think about it, I guess you can't ask this question without it drifting into a political discussion. My bad! LOL!!

Honestly, I'm really mostly wondering if expensive gear that I want will unavoidably just end up getting even more expensive.
 
Aug 6, 2019 at 1:04 PM Post #7 of 11
Interesting points... and now that I think about it, I guess you can't ask this question without it drifting into a political discussion. My bad! LOL!!

Honestly, I'm really mostly wondering if expensive gear that I want will unavoidably just end up getting even more expensive.
Yes Virginia everything is going up.....but...
The world and USA has an output gap. Frankly it’s growing and is deflationary. So that’s why interest rates are low, unemployment is low, yet debt is rising and inflation is low. 10 year USA is at 1.72% which is recessionary.
So trump by increasing tarriffs will decrease demand in the process thus making the output gap worse.
 
Aug 6, 2019 at 2:09 PM Post #8 of 11
Audioholics talked about this a few weeks back. Some interesting points of how it can effect the audio world

 
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Aug 7, 2019 at 11:41 PM Post #10 of 11
China playing for trump loss in 2020. Not that Dems are better for trade per se but trump is just that bad. Canada is playing for trump loss in 2020. So we pretended to ratify trumps usmc agreement knowing it will not be ratified and trump loses 2020. Granted trump can get USA in lots more trouble before he loses and gets perp walk for obstruction. But no one escapes China USA trade war. Fortunately the USA family will be hit first with 1200$ sucked out of there pockets by Christmas.so that’s a direct hit to his uneducated white male base. Well that and wannabe millionaires.

did they talk to the Russian about that? lol seems like a conflict of interest...
 
Sep 13, 2019 at 10:26 PM Post #11 of 11
The conservative play here is, if you are thinking of buying gear made or assembled in the PRC at some point in the not-too-distant future, it is probably wise to go ahead and do it now. While not attempting to make any kind of political remark here, it is just a fact that Donald Trump does not make decisions based on a reasoned, strategic process. He seems to make most of his decisions on the basis of whatever emotional state he finds himself in at that moment. I believe he refers to this process as "following his gut."
 

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