U.S.-China Trade Battle Hits These Companies

The following video is part of our "Motley Fool Conversations" series, in which, David Williamson, health-care editor and analyst, and Brendan Byrnes, industrials editor and analyst, discuss topics around the investing world.

In today's edition, Brendan and David discuss the latest tit-for-tat in the U.S.-China trade battles. After a U.S. tariff on tires made in China, China responded with a tariff of its own on SUVs and large cars. Will this affect the big automakers? And is this a sign of more trade battles to come?

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Brendan Byrnes owns shares of Ford. David Williamson owns shares of GM. The Motley Fool owns shares of Ford and Coach. Motley Fool newsletter services have recommended buying shares of General Motors, Ford, and Coach and creating a synthetic long position in Ford Motor. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


Read/Post Comments (5) | Recommend This Article (6)

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  • Report this Comment On December 24, 2011, at 3:42 PM, foolishgold1 wrote:

    I live close to Akron Ohio. Akron used to be the rubber capitol of the World. Now all those jobs belong to China. A great percentage of what we buy in the USA is made in China. China is upset that we impose a tax to offset the loss we take in revenue?

    OH well! So be it! Another thing we (the USA) should do is require Quality control Standards be set in place for all imports. Maybe tires and things of that nature, are already of an acceptable quality but; What about all the things bought and sold here each day that are fit for the dumpster a day after the consumer opens the package. Some things like aftermarket car parts are down right unsafe! A few examples are wheel bearings that fall apart, Brake pads that crumble... The list goes on and on. How many times have you bought an electronic item that didn't even work out of the box?

    We as a Country need to quit digging our hole deeper and start filling it back in.

    This tariff was a good start but; Don't expect our Govt. to step much further over that line. Remember that China is buying our MASSIVE debt!

  • Report this Comment On December 24, 2011, at 7:45 PM, afxboss302 wrote:

    Why is it that when I go to Home Depot, Lowe's, or any hardware store that everything I pick up is made in China? Are we really that weak? Is the stuff made in China of superior quality? Hell no it's not. It's packaged in a pretty box but the tool or whatever it is, is crap. It doesn't matter if a republican or a democrat is in the White House, they don't seem to recognize that we can't hardly buy anything made in the USA. I blame so much of this on our own American businesses. They say they can't be completive with American labor so they shut done factories here and begin producing in China. So does the price of the product go down to reflect cheap labor? Hell no, they sell it for the same price as if it was built here. The outcome is huge profits, no American labor, and huge bonuses for the headquarters staff. To me, that's Un-American.

  • Report this Comment On December 24, 2011, at 10:02 PM, audreywood wrote:

    We must get our competitive edge back into our workforce, american workers are some of the best and hardest working but the MOST greedy. We don't need to work for the same wages as our overseas brothers as we foreget the SHIPPING costs. BUT we must be competitive again, get rid of the unions and the lawsuits and lets get back to work. The employers would surely like to have the work here again where they don't cheat on materials and quality, our labor costs must realign as did the housing costs. The medical in China also works better as all doctors work for a hospital sponsored by the gov. and you can't sue the gov., this is why their med. costs are low, no secret, you should not be able to sue a Dr that is trying to help you. Lets look at everything as a whole........

  • Report this Comment On December 25, 2011, at 10:36 PM, rpt777 wrote:

    Question: Why do American retailers offer so much "made in China" ??

    Answer: because for the past 30 years we the consumer have rewarded the stores with the lowest prices with our continued business and shunned the businesses that could not offer those low low prices..

    Question: when will it change?

    Answer: Only when the Consumers demand that something else is offered and refuse to buy from retailers that do not offer " Made in the USA"

    But be prepared to pay a lot more.

  • Report this Comment On August 14, 2012, at 10:51 PM, MHedgeFundTrader wrote:

    One of the great things about running a website with a truly global reach is that readers send me material which is nothing less than outrageous. So I had to laugh when I found in my inbox an animation of two bears discussing the hopelessly idiotic approach the US government has taken towards its trade with China over the past two decades.

    America gave away 25 million jobs, got nothing in return, with the end result that our standard of living is falling, while China’s is rising. The Chinese made this easy by devaluing their currency 50%, thus giving their exporters an unassailable price advantage. This has enabled the Middle Kingdom to buy an increasingly larger part of the US every year at knock down prices.

    The US could address this imbalance at anytime through the imposition of punitive import duties and forcing a revaluation of the Chinese Yuan. But any attempts to do so are fought off by well-financed libertarian pro business elements spouting the principals of free trade. So China laughs all the way to the bank, and the unemployment rate here ratchets ever skyward.

    The Mad Hedge Fund Trader

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