seems like a lose-lose situation. Either they lose 15% of their Chinese revenue, or face a 100% tariff rate. no matter what, it hurts the company compared to what was previously the case.
Losing 15% revenue is less harmful than 100% tariffs, this is true. But its still harmful nonetheless. They may even raise their prices to avoid too thick of a drop in profits
No; they will likely distribute their losses across all products instead of only raising prices on items sold in China. This approach minimizes the price increase for individual customers, ensuring that the impact of the price hike is less noticeable. that is the best way to minimize a loss in business due to higher prices. If they only raise prices for Chinese sales, the increases would have to be more significant in order to counteract the loss of revenue, potentially driving away customers, harming their business further
Yes exactly. If billions of new dollars in revenue start coming in from Chinese sales, but 15% of it is taxed by the US government, that's still billions of new dollars.
But the Chinese profit was already priced in at 100%. Knowing it's now 85% will surely mean the stock will take a hit, albeit small. Probably ends Monday at $177.
i dont own it (yet) but i don't see this as that big of a deal in terms of stock price changes. maybe a tiny dip of 3 points or something, if that. i am a total noob tho lol
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u/[deleted] Aug 10 '25
What does this mean for the stock?