Trump wants you to believe that the Chinese are going to pay the extra 25%. That's not how it works.
Anything you buy from China will now cost 25% more. That's how it actually works or it could be more than that.
So, what usually happens is if you can get that product from another country (even the U.S.) then people might buy that product instead if it costs less than the Chinese product. I think this is what Trump is actually hoping for.
In the meantime most American stocks with dividends are also partly invested in China so these Blue Chips with wings in China might drop in price (at least as long as the 25% tariffs are tacked onto Chinese Goods.
Why?
Because the tariffs usually cause people to buy less goods from China and to buy less expensive stuff from anywhere else including the U.S.
But, this could change any moment too when tariffs go off. So, it is a very confusing time for American and other countries products and Chinese companies as well.
So, likely some Chinese companies and American companies and other countries companies also might go bankrupt because of Trump's Tariffs.
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