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The Kobeissi Letter
What type of goods does the US import from China?
63% of imported goods from China are final products such as clothing and electronics purchased by US consumers.
37% of US imports are intermediate goods that are exploited in US production.
These goods are particularly used in the machinery, tool, and auto industries.
Meanwhile, US small and medium businesses account for 41% of imports from China.
Therefore, a significant surge in tariffs on China will increase not only the prices of imported goods, but also the production costs for domestic companies.
We expect to see price increases if tariffs are sustained.
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What type of goods does the US import from China?
63% of imported goods from China are final products such as clothing and electronics purchased by US consumers.
37% of US imports are intermediate goods that are exploited in US production.
These goods are particularly used in the machinery, tool, and auto industries.
Meanwhile, US small and medium businesses account for 41% of imports from China.
Therefore, a significant surge in tariffs on China will increase not only the prices of imported goods, but also the production costs for domestic companies.
We expect to see price increases if tariffs are sustained.
tweet
Offshore
Photo
The Kobeissi Letter
BREAKING: US Treasury funds posted a record ~$19 billion in net inflows last week.
This surpassed the previous high of ~$14 billion seen during the 2020 pandemic.
As a result, the 4-week moving average jumped to ~$7 billion, the highest since March 2023.
Meanwhile, the 30-year Treasury yield is down nearly 30 basis points from its April high.
The US bond market is stabilizing.
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BREAKING: US Treasury funds posted a record ~$19 billion in net inflows last week.
This surpassed the previous high of ~$14 billion seen during the 2020 pandemic.
As a result, the 4-week moving average jumped to ~$7 billion, the highest since March 2023.
Meanwhile, the 30-year Treasury yield is down nearly 30 basis points from its April high.
The US bond market is stabilizing.
tweet