MSTR The market feels the need to de-risk again, given uncertainty around trade tariffs. Those fears are over blown and the market is overreacting (as usual).
Does anyone remember being affected in 2018 by the 10-20% China tariffs, which are still in place? No.
Imports only account for around 11% of GDP, so the vast majority of Americans will see no difference in prices when the tariffs take effect. Exporters will absorb the majority of the tariffs in order to protect their US market share. Importers will mostly absorb any of the remainder, again to protect their market share.
I used to be a major importer of car and truck parts and accessories, taking delivery of dozens of container loads each month. I can tell you for a fact that shipping cost of the containers was a far greater concern (which more than quadrupled under the Biden admin) toward margins than the trade tariffs. Most of my suppliers in the far East absorbed the tariffs, which they can easily do with their 60% margins AND substantial government subsidies. But the shipping costs are FOB, mean they are always paid by the importer.
This "bad news of the moment" too shall pass and the press will find another boogeyman to bash the Administration over. Right now though I think it's a buying opportunity, and I'm doing just that across the market.