U.S.-China Tariffs Create a Market Opportunity

China is back in the news.

There could be major fireworks in the hours ahead, as the U.S. has pledged to increase tariffs on hundreds of billions in Chinese goods if an agreement on trade isn’t made.

Who’s the winner here? Well, that’s not an easy question to answer. Higher prices on Chinese goods make them pricier for U.S. consumers. But if China imports more U.S. goods, that’s good for exporters. In the end, tariffs are not good for anyone.

For example, Polaris Industries, which manufactures snowmobiles, ATVs and neighborhood electric vehicles, is worried about the consequences of higher U.S. tariffs. Polaris CEO Scott Wine says they may force him to consider moving jobs to Mexico.

“We just can’t stand for it,” Wine said in a phone interview Tuesday. “I don’t want a Fortune 500 company like we are to be very vocal against the tariffs and undermine our negotiating position as a country. That said, if it goes to 25%, I will become one of the most vocal people you’ve ever heard on the issue.”

Tariffs are bad business. But that doesn’t mean the playing field doesn’t need to be more level. If American consumers demand cheap products, China will be in business. But there is a real need to crack down on intellectual property theft and counterfeit production, as well as allow more American goods to be sold in China.

These issues are not all connected. And tariffs are punitive to one group: consumers.

Be that as it may, we have a cheap, binary way to play the China outcome. It’s an all-or-nothing play. No excuses. But for less than $0.50, we have a position that will speculate on an agreement between the U.S. and China.

iShares China Large-Cap ETF Daily

We’ve got our eyes on the iShares China Large-Cap ETF (NYSE: FXI).

Action Plan: Instead of wagering big by buying shares in a Chinese company or an ETF, we’ll take a position in a cheap options play in The War Room. This will substantially limit our dollars at risk in the event we get a real crash in prices of Chinese companies.

See you in The War Room,

P.S. You won’t BELIEVE what happened in our launch of The War Room yesterday. In just 15 MINUTES, my partner, Bryan Bottarelli, made a 26% gain for our members from playing Lyft.

Already the testimonials are flowing in!

  • In Lyft at $2.85, out at $3.20. Great first trade on the first day! Thanks, Bryan. – Angela L.
  • Lyft, in at $2.90, out at $3.30. Thanks, Bryan and everyone in The War Room! – Rodolfo P.
  • Fastest trade ever for me… got in Lyft at $2.75 and out at $3.25!! Thank you for the profitable trade! – Werner E.

If you want to profit off of daily and LIVE trade recommendations, then check out Bryan’s groundbreaking presentation. In it he reveals some of his well-kept trading secrets, and he introduces The War Room, a live trading recommendation portal, where he and I put our trading tactics to work!


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