There’s a fundamental misconception at the root of President Trump’s tariff policies, which is the mistaken claim that the existence of a U.S. trade deficit proves that trade is unfair.
Shares of analog chip manufacturer Texas Instruments (NASDAQ:TXN)
fell 8.3% in the morning session after China Semiconductor Industry Association issued an emergency directive detailing new methods for verifying the origin of imported chips. According to reports, the location of the wafer fabrication plant would define the origin of imports when tariffs are applied. This meant that companies with manufacturing facilities in the US might be severely affected by the escalating US-China trade tension.
Shares of discount retailer Five Below (NASDAQ:FIVE)
fell 8.7% in the afternoon session after Bloomberg reported the company instructed its vendors to delay the shipment of certain goods to China before their final delivery to the U.S., underscoring the retailer's cautious stance amid escalating trade tensions between the U.S. and China. For investors, while this signaled that the company was closely managing its exposure to tariffs, it also raised the possibility of near-term inventory challenges or missed sales opportunities if delays persisted or demand shifted unexpectedly.
