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Could Be Time to Defer Your next Major Purchase for a Month or Two .

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USA is putting more tariffs on many Chinese manufactured goods which will lead to a sharp increase in price and hence much lower sales in the States, the main market for these goods .

Economic commentators believe that this will lead to Container ships wandering the globe searching to offload these goods at knockdown prices . This will include the UK.

Time to do a bit of research and realise what brands / sectors are "made in China " as there will be bargains to be had .

The majority of garden seating , trampolines and the like , Hisense products , many computers , mattresses , furniture etc etc will shortly be searching for a tariff free home .

I'm sure that we already know the majority of cheap clothing , domestic goods , jewellery etc (whatever the English sounding name ) come from China .

Additionally EU exports are also in the frame so maybe time to think about a new Merc , BMW which will suffer a 25% import duty to the States .

Obviously the list of affected products is not exhaustive but worth checking where your prospective purchase is manufactured as the price in UK could be drastically reduced over the next month or two.

intherealworld
5 days ago
What do you think of this?+20 points
Jerseydrew

It'll be interesting to see how this will work out. I reckon it'll affect America more then the rest of the world

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intherealworld

Jerseydrew It will of course and probably increase inflation over there too (and possibly US interest rates also ) . Been following comments by various economic strategists over the last couple of weeks and they are all agreed imports to the States will drop substantially if the tariffs go ahead .

Chinese and indeed EU manufacturers will thus have a lot of overstock to clear which was previously sold in the States . Could be some tasty price reductions in the next couple of months . If you have your eye on a BMW , Merc even a Shark or Ninja (amongst millions of other products) a big price reduction could be just round the corner .

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davewalsh126

Jerseydrew Fascinating that the US Postal service will not accept parcels from China as part of the sanction.

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suevernon1968

One of my grandkids thinks that everything in the world is made in China - I suppose it’s nearly right ! This little gem of information came out when we were ordering a Chinese takeout and he asked if we had to teach the Chinese how to make fish and chips. 🤣

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davewalsh126

suevernon1968 China manufactured 66% of the world's products from data released earlier this year.

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BonzoBanana

davewalsh126 Even when products aren't fully made in China you get assembly plants around the world basically assembling Chinese components into a finished product. In Europe we have TV assembly plants like that and bicycle assembly plants. Even for cars a huge amount have a high amount of Chinese parts especially electronics.

I'm no fan of Trump but there is a huge issue in the world of globalisation of industries where too much is made in Asia and huge trade inbalances leads to huge borrowing. The US is approaching $40 trillion of debt which is likely unpayable, well over $110k for every person in the US and this debt doesn't include pension liabilities etc, its is just the main government debt. There seems to be high debt everywhere across Europe, USA, Australia, Canada etc. It has been utter madness. The higher the trade deficit the more you put your currency in the hands of other countries which you end up borrowing back and paying interest on or they use that currency to buy up assets in your country. Typical IMF bailout conditions include tariffs to protect that damaged economy and allow it to regenerate its own industries and farming etc. Ultimately the world can't continue as it is, we are heading for a horrific economic crash/recession.

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