When President Trump first mentioned that he was beginning a trade war with China – most people were both scared and angry at his decision to do so…
Even though the trade deficit between our two countries was absolutely out of control in favor of China – people have been increasingly nervous as the effects of the tariffs begin to take hold of the American economy.
People are scared – and for good reason – trade wars have the ability to change business forever…
And this one seems to be doing EXACTLY that.
How it’s changing and what it means for the future is the real question…
Luckily, we’ve got some answers for you.
One of the expected effects of the trade war was that Americans would experience higher prices…
That the cheap labor in the Chinese manufacturing industry would no longer pay dividends at the cash register – as prices would need to be increased to offset the new cost of production.
And they’re right…
Some things have already gone up in price by about 10% so far – with the iPhone leading the charge, as Apple Inc. (AAPL) looks to become one of the first to raise its prices.
Doing the math – the $1,000 iPhone could see a price increase of up to $160 per phone to offset the increased costs.
While that may not be considered astronomical when looking at the overall price of the phone…
It does make a difference for some people. That extra $160 could add another 3-5 months of payments to their overall purchase price if they buy through a carrier.
However…
In the grand scheme of things – the price may not affect much – and the goods that are affected by the trade war may not impact sales significantly enough to make a difference.
However, as investors – prices aren’t what interest us the most.
No, what most people in the markets are thinking does…
“How is this trade war going to affect my portfolio and how can I either avoid losing money or make more of it going forward?”
Well, there is DEFINITELY going to be some impact on your portfolio….
But it doesn’t have to be all bad…
You see, the one thing this trade war is already doing is shifting some businesses right out of China. And not just temporarily until this whole thing gets settled between Trump and Xi….
But for good.
Yes, businesses may be heading out of China for good as the trade war is opening up new opportunities for OTHER countries to slide in and try and take over what was traditionally China’s territory.
China-based companies have already begun bracing for what is to come…
In fact, the latest trade numbers look like Chinese sales to America of computers and auto parts are already on the decline – but as we just said…
What may be China’s misfortune may be another country’s blessing…
Countries like Mexico and Vietnam have been at the top of the heap with other countries like South Korea, Taiwan, France, Japan, and India all picking up a bump in business too.
If you’ve noticed – a lot of those countries – President Trump has made visits to… visits that may have all been for the purpose of securing business deals that would slide into place when the tariffs on China took effect.
People may think he’s a horrible human being – but when it comes to business – he seems to know what he’s doing.
Of course – what’s really at stake here is China’s place in the global manufacturing sector…
Because as the trade war rolls on – more and more foreign investors and technology innovators will look to get more bang for their buck outside of the China.
This not only puts their economy in danger…
But their future as a technology bastion also becomes clouded.
For investors like us…
This news looks more like a treasure map than a trade war ledger – as we can now see where there could be some emerging foreign markets that could benefit BIG from the China/U.S. trade beef.
We might want to pull some money in Chinese investments OUT of the country and put it to use somewhere where it may generate better results.
And now that we know where that business is going…
It could be like shooting fish in a barrel.
We’re EXCITED to see how this story develops over the summer and we’re ready to pass any hot profit opportunities off to our subscribers…
If you’re not a GorillaTrades subscriber yet – then what are you waiting for?!
We know where to look for new and potentially tremendously profitable plays…
We’re ready to work this trade war to our advantage.
You can run with us or you can go it alone…
Either way – good luck!
Though, with a veritable road map to investments – we may not need it!
“Winning is not a sometime thing; it’s an all time thing. You don’t win once in a while, you don’t do things right once in a while, you do them right all the time. Winning is habit. Unfortunately, so is losing.” – Vince Lombardi