AI
Thursday, March 27, 2025 2:27:12 PM
Att: B402 - President McKinley’s Tariff Mishap Could Be a Warning Sign for Trump’s Trade War
Related: Did the market crash today? Tariffs have worked well for america....look up McKinley s speech the the day before he was killed
The trick is not to use them too long......They may be the only hope to even out the class warfare in the US and that's why they were used before
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=175984540
LOLOL To even out the class warfare. If there is worth at all in that claim of
yours, the tariffs didn't work to cut the class warfare in the long run, did they.
"Taxes are not tariffs, yet Trump's WH claims they are to justify Trump's fetish for tariffs.
US president Trump promises ‘reciprocal tariffs’ to VAT"
Author: mary
Date Posted: February 28, 2025 Read time: 36 min
Very long
More than a century ago, then-Representative William McKinley pursued an aggressive tariff strategy that sought to protect American industry and reduce reliance on foreign imports. The McKinley Tariff Act of 1890 raised import duties to an average of 50%, one of the highest levels in U.S. history.
The logic was simple: If foreign goods were more expensive, Americans would buy domestic products, fueling economic expansion.
But the results were not so simple. Instead of strengthening America’s trade position, the tariff triggered retaliation from other nations. Prices rose, particularly for middle- and lower-income Americans, and political backlash followed. In the 1890 midterm elections, voters revolted: McKinley lost his seat, and Democrats took control of the House.
At the time, some Republicans dreamed of annexing Canada, believing that the economic pressure would push Canadians to seek statehood. Instead, the tariff had the opposite effect—Canadian nationalists rallied against what they saw as economic coercion. The country deepened its ties with the British Empire, reinforcing the very trade barriers the U.S. sought to disrupt.
Tariffs, Trade Deficits and Consumer Confidence
Fast-forward to today, and we’re seeing some eerily similar trends, starting with an increase in Canadian pride. Due to some of President Donald Trump’s antagonistic rhetoric, we saw Canadians boo the U.S. national anthem during the 4 Nations Face-Off hockey game last week, and a recent poll shows that Canadian pride has jumped 10 points since December 2024.
Trump has made tariffs a cornerstone of his economic strategy, arguing they will bring jobs back to America and reduce the trade deficit. But just like in McKinley’s time, history suggests tariffs don’t actually reduce trade deficits—they often increase them. Why? Because tariffs discourage trade on both sides, leading to fewer exports and fewer imports.
The data backs this up. According to the Peterson Institute for International Economics (PIIE), countries with higher tariffs tend to have larger trade deficits .. https://www.piie.com/blogs/realtime-economics/2025/why-higher-tariffs-wont-shrink-trade-deficit , not smaller ones. And while tariffs may benefit specific industries in the short term, they also raise costs for American consumers and businesses, leading to lower consumer spending and weaker confidence in the economy.
That’s exactly what we’re seeing today. Consumer confidence has been falling, with the Conference Board’s index dropping seven points in February, the largest decline since August 2021.
Investors are paying attention: During recent earnings calls, S&P 500 companies mentioned “tariffs” a record 191 times, more than in 2018 or 2019, when Trump first imposed duties on Chinese goods.
Personal computer (PC) and printer manufacturer HP Inc., for instance, warned shareholders during its earnings call this week that “the current U.S. tariff increases on China” would weigh on profitability this year.
How Investors Should Think About Tariffs
I often say that it’s the policies that matter, not the political parties. That said, here are three things to keep in mind when evaluating tariffs:
1. Tariffs Are a Tax—And Taxes Raise Costs
It doesn’t matter who pays the tariff initially—whether it’s foreign exporters or U.S. importers—the additional cost eventually hits Americans’ pocketbooks. History shows that tariffs lead to higher prices for goods, which can hurt economic growth over time.
In October 1890, shortly after the McKinley tariff went into effect, the New York Times reported that companies in multiple industries were raising consumer prices across the board, including those in men’s and women’s clothing, groceries, tinware, clocks, books and more.
We’re seeing similar concerns today, with businesses warning about price hikes on everything from electronics to automobiles.
2. Trade Volatility Hurts Business Confidence
When tariffs are used unpredictably, companies hesitate to make long-term investments. This uncertainty can slow hiring, delay capital spending and force businesses to look for alternatives—whether that means shifting supply chains out of China or investing in automation rather than workers.
Investors should watch sectors most affected by tariffs, such as automotive, manufacturing and energy, where companies are exploring mergers and acquisitions (M&A) to hedge against trade risk.
3. Global Trade Relationships Matter
Canada is the United States’ largest trading partner, accounting for $413 billion in imports and $349 billion in exports in 2024. The U.S. also relies heavily on Canadian energy imports, including crude oil, natural gas and electricity.
The unintended consequence of aggressive trade policies could be that Canada—and other key partners—look elsewhere, just as they did after the McKinley Tariff. Several Canadian politicians are now advocating for new pipelines to coastal export terminals, reducing dependency on the U.S. market. Once those trade routes shift, they are not easily reversed.
Investing Without Bias
The lesson here isn’t that tariffs are inherently bad, nor is it to criticize President Trump. The point is that we, as investors, must think independently and assess policies based on their actual effects, not just their stated goals. History has shown that tariffs often come with unintended consequences, and we’re seeing echoes of the McKinley era today.
Markets thrive on certainty, and tariffs introduce uncertainty. While they may benefit select industries in the short run, they often result in higher consumer costs and slower economic growth. If McKinley were alive today, he might remind us that by 1901—just a day before his assassination—he had abandoned his hardline tariff stance .. https://www.wsj.com/video/series/news-explainers/why-trumps-tariff-idol-mckinley-abandoned-his-own-tariff-policy/38A9364C-142B-4656-AFE3-B6F7F4F504E2 .. in favor of reciprocal trade agreements. That shift, too, is a lesson in economic pragmatism.
History doesn’t repeat, but it often rhymes—and smart investors know when to listen.
Index Summary
* The major market indices finished mixed this week. The Dow Jones Industrial Average gained 0.95%. The S&P 500 Stock Index fell 0.98%, while the Nasdaq Composite fell 3.47%. The Russell 2000 small capitalization index lost 1.47% this week.
* The Hang Seng Composite lost 2.58% this week; while Taiwan was down 2.85% and the KOSPI fell 4.59%.
* The 10-year Treasury bond yield fell 2 basis points to 4.203%.
Airlines and Shipping
Strengths
* Embraer hit a 52-week high after the company reported adjusted net income for the fourth quarter that beat the average analyst estimate. Adjusted net income was $173 million versus $77 million year-over-year, estimate was $120.0 million. Net revenue was $2.31 billion, 17% year-over-year, while the estimate was $2.3 billion, writes Bloomberg.
* Air travel in China surged in early 2025, reports the IATA, with over 26.2 million trips by plane for the Chinese New Year holiday. That represents a 4 percent increase from the same time in 2024.
* Reuters reports that over 45,000 U.S. dockworkers ratified a new six-year contract this week, securing a 62% wage increase and preventing disruptions until 2030. The agreement, which was reached in October, ended a three-day strike that had caused shipping price hikes and cargo backlogs at numerous ports.
Weaknesses
* A South Carolina man who stripped naked and assaulted a federal officer at Indianapolis international airport in 2023 has been sentenced to 33 months in federal prison. After passing through a screening machine at the checkpoint, the machine indicated that the man required additional screening of his chest, groin, and buttocks, according to Bloomberg.
* Turkish Airlines reported net income for the full year that missed the average analyst estimate. Net income was 113.4 billion liras, down 30% year-over-year, while the estimate was 117.6 billion liras, Bloomberg reports.
* Gatwick Airport’s second runway delayed by the Transport Secretary despite her pledge to “defy eco-warriors” on the €2.2 billion expansion. As a result, she extended the deadline for the final decision by nine months to October 27, according to Bloomberg.
Opportunities
* According to Simple Flying, Air Service One’s analysis reveals that 2024 marked the first year since the pandemic that European air traffic surpassed pre-2019 levels. However, individual countries show differing recovery rates, with Greece and Poland seeing the best rebounds, both exceeding 2019 traffic by around 21%. Notably, Albania experienced the most significant growth, with a remarkable 220% increase despite being a smaller market.
* Elon Musk’s SpaceX is working to deploy Starlink satellite internet terminals to help upgrade the U.S. Federal Aviation Administration’s airspace system, Bloomberg reports. This effort raises concerns about potential conflicts of interest for Musk’s businesses, as Verizon Communications was awarded a $2 billion contract in 2023 for similar infrastructure improvements. Musk recently approved the shipment of 4,000 Starlink terminals to the FAA, with one already installed for testing at the agency’s air-traffic control lab in Atlantic City.
* JetBlue Airways said Thursday it will start a new daily summer seasonal route between New Hampshire’s Manchester Boston regional airport and New York’s John F. Kennedy international airport. The route will run daily from June 12 to October 25 using the airline’s Airbus A320 aircraft, JetBlue said in a statement.
Threats
* LNG shipping stocks have experienced heightened volatility recently, with the UP-World LNG Shipping Index (UPI) dropping 1.79%, reflecting broader market trends. Concerns over U.S. policy shifts have increased investor caution, although LNG shipping could benefit from these changes, explains Hellenic Shipping News.
* More than 1,000 Syrians died by execution, torture or maltreatment at a military airport outside Damascus, according to a new report that traced their deaths to seven suspected grave sites.
* Since Christmas Day, four commercial jets have crashed, killing 300 people and injuring many others. Images of the explosion over the Potomac after a Black Hawk helicopter collided with a plane, and of a Delta flight upside down on the runway in Toronto have spooked people of their next trip, writes Bloomberg.
Luxury Goods and International Markets
Strengths
* Eurozone business confidence improved, with the European Commission’s economic sentiment indicator rising to 96.3 from 95.3 in January, attributed to falling interest rates. Year-to-date Europe, as measured by the STOXX 600 Index, gained 10.5% while stocks listed in the United States only gained 1.2% during that same time period.
* European luxury stocks gained momentum as Kepler Cheuvreux reinstated a positive outlook on the sector. The firm upgraded shares of LVMH, Kering, and Burberry to a “buy” rating, while also raising price targets for Richemont, Prada, and Moncler.
* Li Auto, a Chinese EV manufacturer, was the top-performing stock in the S&P Global Luxury Index, with a 15.7% increase over the past five days. JPMorgan upgraded Li Auto shares to an “overweight” rating, saying the company could double its sales by 2027.
Weaknesses
* In the United States, the Conference Board’s Consumer Confidence Index dropped by 7.0 points to 98.3 in February, marking the most significant monthly decline in over four years. This downturn is attributed to concerns over persistent inflation and potential trade conflicts under President Trump’s administration.
* Shares of Ferrari dropped this week after news emerged that the Agnelli family is selling a stake valued at around 3 billion euros. The billionaire family will remain Ferrari’s largest shareholder, retaining approximately 33% of voting rights. Additionally, Ferrari plans to buy back about 10% of the shares sold.
* Lucid Group, a U.S. EV manufacturer, was the worst-performing stock in the S&P Global Luxury Index, dropping 32.6%. Lucid reported better-than-expected revenue of $807.8 million for 2024 (up 36% from 2023), and the company’s net loss widened by 8.2% to $3.06 billion. Peter Rawlinson, Lucid’s CEO, unexpectedly stepped down from his position.
Opportunity
* Bank of America research shows that the fourth-quarter earnings season exceeded expectations, with luxury revenue growing by 1%. The firm believes the worst of the luxury demand decline is behind us and predicts stronger revenue going forward. However, the group warns that luxury stocks have already gained 15%, with significant variations in revenue among top performers and laggards.
* Many luxury brands are lowering prices to attract aspirational buyers, particularly those impacted by high inflation and rising interest rates. Burberry has been successful with this strategy. Ahead of the holiday season, the company adjusted its pricing structure to reach a broader audience, offering more accessible products. As a result, Burberry saw its first new customer growth in two years in December and a 4% increase in third-quarter store sales across America.
* Tiffany & Co. is preparing to open a new store in Brazil, bringing the total number of its locations in the country to five. The luxury market in Brazil has shown consistent growth in recent years. In 2023, the sector grew by 30%, followed by an 11.7% increase in 2024. The forecast for this year is 15% growth, according to an annual survey by the Brazilian Association of Luxury Brands and Companies.
Threats
* Strong demand for luxury goods in America had previously supported high-end brands; however, recent trends in the U.S. consumer sector show signs of decline. Retail sales in January fell by 0.9%, and consumer confidence dropped by nearly 10% in February.
* Germany has a new Chancellor, Friedrich Merz, following last week’s elections. This shift could bring changes to transatlantic relations, with his policy agenda focusing on reducing personal and corporate taxes, cutting regulations, and implementing a stricter immigration policy. However, the process of forming a new government may be challenging due to a fragmented political landscape. The Christian Democratic Union/Christian Social Union (CDU/CSU) secured 28.5% of the vote, the Alternative for Germany (AfD) received 20.8%, and the Social Democratic Party of Germany (SPD) gained 16%.
* Xiaomi, a Chinese EV manufacturer, slashed the price of its luxury electric sedan, the SU7 Ultra, by 35% in an effort to compete with other EV makers like BMW, Audi, Mercedes, and Tesla in the market. Following the price cut announcement, Xiaomi received 6,900 orders within just 10 minutes, gaining market share from foreign companies.
Energy and Natural Resources
Strengths
That's a bit less than half -- https://www.usfunds.com/resource/president-mckinleys-tariff-mishap-could-be-a-warning-sign-for-trumps-trade-war/
Related: Did the market crash today? Tariffs have worked well for america....look up McKinley s speech the the day before he was killed
The trick is not to use them too long......They may be the only hope to even out the class warfare in the US and that's why they were used before
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=175984540
LOLOL To even out the class warfare. If there is worth at all in that claim of
yours, the tariffs didn't work to cut the class warfare in the long run, did they.
"Taxes are not tariffs, yet Trump's WH claims they are to justify Trump's fetish for tariffs.
US president Trump promises ‘reciprocal tariffs’ to VAT"
Author: mary
Date Posted: February 28, 2025 Read time: 36 min
Very long
More than a century ago, then-Representative William McKinley pursued an aggressive tariff strategy that sought to protect American industry and reduce reliance on foreign imports. The McKinley Tariff Act of 1890 raised import duties to an average of 50%, one of the highest levels in U.S. history.
The logic was simple: If foreign goods were more expensive, Americans would buy domestic products, fueling economic expansion.
But the results were not so simple. Instead of strengthening America’s trade position, the tariff triggered retaliation from other nations. Prices rose, particularly for middle- and lower-income Americans, and political backlash followed. In the 1890 midterm elections, voters revolted: McKinley lost his seat, and Democrats took control of the House.
At the time, some Republicans dreamed of annexing Canada, believing that the economic pressure would push Canadians to seek statehood. Instead, the tariff had the opposite effect—Canadian nationalists rallied against what they saw as economic coercion. The country deepened its ties with the British Empire, reinforcing the very trade barriers the U.S. sought to disrupt.
Tariffs, Trade Deficits and Consumer Confidence
Fast-forward to today, and we’re seeing some eerily similar trends, starting with an increase in Canadian pride. Due to some of President Donald Trump’s antagonistic rhetoric, we saw Canadians boo the U.S. national anthem during the 4 Nations Face-Off hockey game last week, and a recent poll shows that Canadian pride has jumped 10 points since December 2024.
Trump has made tariffs a cornerstone of his economic strategy, arguing they will bring jobs back to America and reduce the trade deficit. But just like in McKinley’s time, history suggests tariffs don’t actually reduce trade deficits—they often increase them. Why? Because tariffs discourage trade on both sides, leading to fewer exports and fewer imports.
The data backs this up. According to the Peterson Institute for International Economics (PIIE), countries with higher tariffs tend to have larger trade deficits .. https://www.piie.com/blogs/realtime-economics/2025/why-higher-tariffs-wont-shrink-trade-deficit , not smaller ones. And while tariffs may benefit specific industries in the short term, they also raise costs for American consumers and businesses, leading to lower consumer spending and weaker confidence in the economy.
That’s exactly what we’re seeing today. Consumer confidence has been falling, with the Conference Board’s index dropping seven points in February, the largest decline since August 2021.
Investors are paying attention: During recent earnings calls, S&P 500 companies mentioned “tariffs” a record 191 times, more than in 2018 or 2019, when Trump first imposed duties on Chinese goods.
Personal computer (PC) and printer manufacturer HP Inc., for instance, warned shareholders during its earnings call this week that “the current U.S. tariff increases on China” would weigh on profitability this year.
How Investors Should Think About Tariffs
I often say that it’s the policies that matter, not the political parties. That said, here are three things to keep in mind when evaluating tariffs:
1. Tariffs Are a Tax—And Taxes Raise Costs
It doesn’t matter who pays the tariff initially—whether it’s foreign exporters or U.S. importers—the additional cost eventually hits Americans’ pocketbooks. History shows that tariffs lead to higher prices for goods, which can hurt economic growth over time.
In October 1890, shortly after the McKinley tariff went into effect, the New York Times reported that companies in multiple industries were raising consumer prices across the board, including those in men’s and women’s clothing, groceries, tinware, clocks, books and more.
We’re seeing similar concerns today, with businesses warning about price hikes on everything from electronics to automobiles.
2. Trade Volatility Hurts Business Confidence
When tariffs are used unpredictably, companies hesitate to make long-term investments. This uncertainty can slow hiring, delay capital spending and force businesses to look for alternatives—whether that means shifting supply chains out of China or investing in automation rather than workers.
Investors should watch sectors most affected by tariffs, such as automotive, manufacturing and energy, where companies are exploring mergers and acquisitions (M&A) to hedge against trade risk.
3. Global Trade Relationships Matter
Canada is the United States’ largest trading partner, accounting for $413 billion in imports and $349 billion in exports in 2024. The U.S. also relies heavily on Canadian energy imports, including crude oil, natural gas and electricity.
The unintended consequence of aggressive trade policies could be that Canada—and other key partners—look elsewhere, just as they did after the McKinley Tariff. Several Canadian politicians are now advocating for new pipelines to coastal export terminals, reducing dependency on the U.S. market. Once those trade routes shift, they are not easily reversed.
Investing Without Bias
The lesson here isn’t that tariffs are inherently bad, nor is it to criticize President Trump. The point is that we, as investors, must think independently and assess policies based on their actual effects, not just their stated goals. History has shown that tariffs often come with unintended consequences, and we’re seeing echoes of the McKinley era today.
Markets thrive on certainty, and tariffs introduce uncertainty. While they may benefit select industries in the short run, they often result in higher consumer costs and slower economic growth. If McKinley were alive today, he might remind us that by 1901—just a day before his assassination—he had abandoned his hardline tariff stance .. https://www.wsj.com/video/series/news-explainers/why-trumps-tariff-idol-mckinley-abandoned-his-own-tariff-policy/38A9364C-142B-4656-AFE3-B6F7F4F504E2 .. in favor of reciprocal trade agreements. That shift, too, is a lesson in economic pragmatism.
History doesn’t repeat, but it often rhymes—and smart investors know when to listen.
Index Summary
* The major market indices finished mixed this week. The Dow Jones Industrial Average gained 0.95%. The S&P 500 Stock Index fell 0.98%, while the Nasdaq Composite fell 3.47%. The Russell 2000 small capitalization index lost 1.47% this week.
* The Hang Seng Composite lost 2.58% this week; while Taiwan was down 2.85% and the KOSPI fell 4.59%.
* The 10-year Treasury bond yield fell 2 basis points to 4.203%.
Airlines and Shipping
Strengths
* Embraer hit a 52-week high after the company reported adjusted net income for the fourth quarter that beat the average analyst estimate. Adjusted net income was $173 million versus $77 million year-over-year, estimate was $120.0 million. Net revenue was $2.31 billion, 17% year-over-year, while the estimate was $2.3 billion, writes Bloomberg.
* Air travel in China surged in early 2025, reports the IATA, with over 26.2 million trips by plane for the Chinese New Year holiday. That represents a 4 percent increase from the same time in 2024.
* Reuters reports that over 45,000 U.S. dockworkers ratified a new six-year contract this week, securing a 62% wage increase and preventing disruptions until 2030. The agreement, which was reached in October, ended a three-day strike that had caused shipping price hikes and cargo backlogs at numerous ports.
Weaknesses
* A South Carolina man who stripped naked and assaulted a federal officer at Indianapolis international airport in 2023 has been sentenced to 33 months in federal prison. After passing through a screening machine at the checkpoint, the machine indicated that the man required additional screening of his chest, groin, and buttocks, according to Bloomberg.
* Turkish Airlines reported net income for the full year that missed the average analyst estimate. Net income was 113.4 billion liras, down 30% year-over-year, while the estimate was 117.6 billion liras, Bloomberg reports.
* Gatwick Airport’s second runway delayed by the Transport Secretary despite her pledge to “defy eco-warriors” on the €2.2 billion expansion. As a result, she extended the deadline for the final decision by nine months to October 27, according to Bloomberg.
Opportunities
* According to Simple Flying, Air Service One’s analysis reveals that 2024 marked the first year since the pandemic that European air traffic surpassed pre-2019 levels. However, individual countries show differing recovery rates, with Greece and Poland seeing the best rebounds, both exceeding 2019 traffic by around 21%. Notably, Albania experienced the most significant growth, with a remarkable 220% increase despite being a smaller market.
* Elon Musk’s SpaceX is working to deploy Starlink satellite internet terminals to help upgrade the U.S. Federal Aviation Administration’s airspace system, Bloomberg reports. This effort raises concerns about potential conflicts of interest for Musk’s businesses, as Verizon Communications was awarded a $2 billion contract in 2023 for similar infrastructure improvements. Musk recently approved the shipment of 4,000 Starlink terminals to the FAA, with one already installed for testing at the agency’s air-traffic control lab in Atlantic City.
* JetBlue Airways said Thursday it will start a new daily summer seasonal route between New Hampshire’s Manchester Boston regional airport and New York’s John F. Kennedy international airport. The route will run daily from June 12 to October 25 using the airline’s Airbus A320 aircraft, JetBlue said in a statement.
Threats
* LNG shipping stocks have experienced heightened volatility recently, with the UP-World LNG Shipping Index (UPI) dropping 1.79%, reflecting broader market trends. Concerns over U.S. policy shifts have increased investor caution, although LNG shipping could benefit from these changes, explains Hellenic Shipping News.
* More than 1,000 Syrians died by execution, torture or maltreatment at a military airport outside Damascus, according to a new report that traced their deaths to seven suspected grave sites.
* Since Christmas Day, four commercial jets have crashed, killing 300 people and injuring many others. Images of the explosion over the Potomac after a Black Hawk helicopter collided with a plane, and of a Delta flight upside down on the runway in Toronto have spooked people of their next trip, writes Bloomberg.
Luxury Goods and International Markets
Strengths
* Eurozone business confidence improved, with the European Commission’s economic sentiment indicator rising to 96.3 from 95.3 in January, attributed to falling interest rates. Year-to-date Europe, as measured by the STOXX 600 Index, gained 10.5% while stocks listed in the United States only gained 1.2% during that same time period.
* European luxury stocks gained momentum as Kepler Cheuvreux reinstated a positive outlook on the sector. The firm upgraded shares of LVMH, Kering, and Burberry to a “buy” rating, while also raising price targets for Richemont, Prada, and Moncler.
* Li Auto, a Chinese EV manufacturer, was the top-performing stock in the S&P Global Luxury Index, with a 15.7% increase over the past five days. JPMorgan upgraded Li Auto shares to an “overweight” rating, saying the company could double its sales by 2027.
Weaknesses
* In the United States, the Conference Board’s Consumer Confidence Index dropped by 7.0 points to 98.3 in February, marking the most significant monthly decline in over four years. This downturn is attributed to concerns over persistent inflation and potential trade conflicts under President Trump’s administration.
* Shares of Ferrari dropped this week after news emerged that the Agnelli family is selling a stake valued at around 3 billion euros. The billionaire family will remain Ferrari’s largest shareholder, retaining approximately 33% of voting rights. Additionally, Ferrari plans to buy back about 10% of the shares sold.
* Lucid Group, a U.S. EV manufacturer, was the worst-performing stock in the S&P Global Luxury Index, dropping 32.6%. Lucid reported better-than-expected revenue of $807.8 million for 2024 (up 36% from 2023), and the company’s net loss widened by 8.2% to $3.06 billion. Peter Rawlinson, Lucid’s CEO, unexpectedly stepped down from his position.
Opportunity
* Bank of America research shows that the fourth-quarter earnings season exceeded expectations, with luxury revenue growing by 1%. The firm believes the worst of the luxury demand decline is behind us and predicts stronger revenue going forward. However, the group warns that luxury stocks have already gained 15%, with significant variations in revenue among top performers and laggards.
* Many luxury brands are lowering prices to attract aspirational buyers, particularly those impacted by high inflation and rising interest rates. Burberry has been successful with this strategy. Ahead of the holiday season, the company adjusted its pricing structure to reach a broader audience, offering more accessible products. As a result, Burberry saw its first new customer growth in two years in December and a 4% increase in third-quarter store sales across America.
* Tiffany & Co. is preparing to open a new store in Brazil, bringing the total number of its locations in the country to five. The luxury market in Brazil has shown consistent growth in recent years. In 2023, the sector grew by 30%, followed by an 11.7% increase in 2024. The forecast for this year is 15% growth, according to an annual survey by the Brazilian Association of Luxury Brands and Companies.
Threats
* Strong demand for luxury goods in America had previously supported high-end brands; however, recent trends in the U.S. consumer sector show signs of decline. Retail sales in January fell by 0.9%, and consumer confidence dropped by nearly 10% in February.
* Germany has a new Chancellor, Friedrich Merz, following last week’s elections. This shift could bring changes to transatlantic relations, with his policy agenda focusing on reducing personal and corporate taxes, cutting regulations, and implementing a stricter immigration policy. However, the process of forming a new government may be challenging due to a fragmented political landscape. The Christian Democratic Union/Christian Social Union (CDU/CSU) secured 28.5% of the vote, the Alternative for Germany (AfD) received 20.8%, and the Social Democratic Party of Germany (SPD) gained 16%.
* Xiaomi, a Chinese EV manufacturer, slashed the price of its luxury electric sedan, the SU7 Ultra, by 35% in an effort to compete with other EV makers like BMW, Audi, Mercedes, and Tesla in the market. Following the price cut announcement, Xiaomi received 6,900 orders within just 10 minutes, gaining market share from foreign companies.
Energy and Natural Resources
Strengths
That's a bit less than half -- https://www.usfunds.com/resource/president-mckinleys-tariff-mishap-could-be-a-warning-sign-for-trumps-trade-war/
It was Plato who said, “He, O men, is the wisest, who like Socrates, knows that his wisdom is in truth worth nothing”
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