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For several months, many people across the United States and beyond were thinking about a urgent question without a clear answer: How much will the trade war affect my money?
Since President Donald Trump soon achieved his promise to impose fees on definitions against Mexico, Canada and China, the United States has been imprisoned in an evil cycle of the environment in which the largest economist in the world is taking place, while consumers can only watch and wait.
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With Trump’s tariff leads the cost of almost everything, from cars to consumer electronics to groceries, it is easy to be concerned about their height. In addition, the uncertainty raised by these policies causes significant fluctuations to the financial markets.
Many of the leading companies in the industry such as Tesla, Nvidia and Amazon recently have struggled, struggling with the effect of Trump’s tariff. But two sudden companies indicated that they are not concerned about the effects of the trade war.
Photo and colon source; Alliance photos and Sol; Getty Images
It may be an unexpected market in a good position to ride a trade war
While consumers are eagerly awaiting the products that will continue to get the most expensive, investors try to determine the best shares to bear the trade war. With many already high stocks fragmentation, questions abound about the best hedges for this complex market.
Related: Amazon has declined a radical decision on customs tariffs
Fortunately, last week’s events may have provided an insight into this topic. But E -Bay website ((EBay website)) And etsy ((etsy)) Q1 profits were reported and the opportunity to process customs duties on their company’s calls, showing that they are not worried.
These companies are leaders in the sections of used commodities and handicraft in the wide e -commerce industry. Although these areas may seem appropriate, this may be exactly what helps them to outpace their peers who are mainly dealing in the insecure goods produced by circles in countries like China.
During their profits calls, the leaders of the two companies explained that although the current conditions that depend on customs tariffs are not perfect, they see their companies good in their position to bear, mainly due to the limited exposure to Chinese sellers.
EBay CEO Jimmy Iyanouni presented an additional context. He said that his Chinese company to the American quarter accounts for 5 % of the total value of goods (GMV), which is the total value of the goods that are sold on a platform from customers to the customer (C2C), which is of the first type EBay.
He says: “Our actions are not immune to increasing costs of definitions and friction, but we are still confident in our ability to support our society.”
Lanie Baker, ETSY Financial Director, adopts similar feelings, Highlight Limited exposure to China by its company.
“Nowadays, direct exposure to ETSY is relatively low, given that just over 1 % of GMS comes from US imports of elements purchased from sellers in China,” he noticed. “Our sellers tell us that they are the source of their supplies locally.”
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Baker adds that the largest part of the total goods sales of ETSY (GMS), which is the value of the dollar for everything that is sold in its markets, can be attributed to local trade from the country’s country. He recalls, “We have seen the benefit of this feature during the bottom of the epidemic and the supply chain that affected international trade a few years ago,” he recalls.
The trade war may be won by small companies, not large companies
In this, we are reminded of an important economic phenomenon that is sometimes ignored when evaluating the hedges against the trade war. Sellers do not depend on ETSY, which mainly meets independent merchants who sell manual or used goods, on China, at all.
Related: Apple CEO sends a sharp message about the impact of definitions
This means that even if the circumstances continue to tighten trade relations, companies like EBay and ETSY will actually have less risks. Their sellers will have an easier time in continuing operations, and they will not have to increase prices by much.
“The presence of sellers with local resource strategies can provide a great advantage over competitors such as Temu, Shein and Amazon,” according to Techcrunch reports. “However, used companies still have to deal with challenges that come with constant economic uncertainty and consumer spending habits.”
It is true that the two companies also confessed that they are not immune to the effect of Trump’s tariff.
But no one, especially in the area of ​​e -commerce. And all the things that have been seen, it seems that the hand -used gift sellers, which are handcrafted in a much better position than China -based companies for a large part of their goods.
Related: The Veteran Fund Director reveals the prediction of the S&P 500
