Trump plans to impose tariffs on Chinese goods, impacting various businesses differently

From Nasdaq: 2024-11-27 08:45:00

Donald Trump plans to impose tariffs ranging from 10% to 20% on imports and up to 60% to 100% on Chinese goods when he returns to the White House in 2025. The stock market is already pricing in worst-case scenarios for Chinese stocks, but not all businesses will be impacted by additional tariffs.

Alibaba’s stock surged on China stimulus hype but collapsed on Trump tariff fears. The company generates most of its revenue from China, with only a small portion from the United States, making it less susceptible to tariffs. However, sentiment can still keep the stock down, so caution is advised.

PDD Holdings, operator of social e-commerce platform Pinduoduo, saw success with Temu.com in the U.S. The platform generated $6 billion in sales from the U.S. in 2023, accounting for a significant portion of its revenue. With potential tariffs and regulatory risks, PDD Holdings is on the avoid list.

JD.com, the largest retailer in China, serves Chinese customers primarily and doesn’t generate significant e-commerce revenue from the U.S. This positioning shields it from Trump tariffs, allowing its stock to perform better than globalized Chinese e-commerce stocks.

Li Auto, a Chinese new energy vehicle maker, has found success in China with profitable growth. The company’s extended range electric vehicles address major EV pain points, with one model capable of driving up to 877 miles. Existing 100% tariffs keep Li Auto vehicles out of the U.S., so further tariffs wouldn’t impact the company.



Read more at Nasdaq: Trump Tariffs in Focus: 2 Chinese Stocks to Own and 2 to Avoid