Tariffs Re-Re-Revisited

The market is almost back to where it was on January 1 of this year and that does both my heart and my portfolio good. What a ride!

I've blogged on both sides of the tariff debate and I'm still in the camp that says Trump could have gotten nearly everything he wanted just by cutting taxes, cutting regulations, reforming education and providing plentiful, reliable energy.

An aside on that last topic can be found here. 

LONDON, May 12 (Reuters) - Power failures caused delays and disruption on London's Tube network on Monday, as several of its busiest lines were suspended.

The Bakerloo line was completely suspended as of 1715 local time (1615 GMT), while other services including the Jubilee, Elizabeth and Piccadilly lines were facing severe or minor delays following a power outage more than two hours earlier.

Oof. There seems to be more than the usual number of major outages across the pond these days.

Anywho, Trump's tariffs have caused all manner of oral gnashing and aural wailing, but there's one aspect that I haven't seen anywhere.

I think Trump issued a wake-up call to China and the companies that produce their products there. I think it's going to have a long-term impact. Dig this.

Apple will be sourcing almost its entire line of iPhones sold in the US -- about 60 million phones a year -- from assembly facilities in India, CEO Tim Cook said Thursday. The planned move comes against the backdrop of the Trump administration imposing tariffs against China of up to 145%.

Trump may well back off on the tariffs, but notice has been served: China is not our friend and Trump isn't afraid of doing wacky, large-scale things.

The smart company will diversify its product sourcing and reduce it's exposure to China. That's not going to be healthy for the Chicoms which means it's a good thing overall.

It won't take much to give Xi a massive headache.