Dividends and Companies facing US tariffs get creative

President Trump has imposed tariffs on Chinese made goods coming to the US. On one hand it could cause investment decisions to be made in the US, on the other hand tariffs are a tax and companies do not like paying the tax as it cuts into margins.

In an article by Paul Wiseman, Anne D’Innocenzio, and Joe McDonald of the Associated Press, what are companies doing? With most govermment decisions some companies will wait till to determine how long will it last?

Other companies such as Xcel Brands have been moving operations outside of China to avoid the tariffs. In addition they were planning to move anyways as costs in China relative to other south Asian countries are high. This action could reduce labor costs by half.

In all restrictions there are regulations that exempt types of imports so it is possible to design clothing differently but more or less be the same thing. Examining the classification system to find solutions.

A regulation in shipping notes if the item is less than $800, items from Mexico can be shipped tax free through e commerce.

Another option is to delay making investments till another year

Linking to dividend paying stocks, governments make rules amd regulations, how they are observed and fudged to get around them is a different story. It would be nice if the rules were simple, but that is optimistic.

There are more questions than answers, till the next time- to raising questions.






Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s