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While the American barrel and in China is long on the deadline of Wednesday priced fixed by President Donald Trump, Amazon may well be a secret weapon for America. “China is what is fighting an Amazon, a Walmart,” said Jim Cramer at the meeting on Tuesday morning. “So, if you are Amazon, you get back and say:” Listen, we will let your things stay at the quay. We prefer to be out of stock. “Then it is a chicken game.” Such a decision, even in a segment of lower rooms with the lower margin, will not be painless for the name of the Amazon club but would send a signal to China. JPMorgan recently estimated that between 30% and 40% of products sold on Amazon could come from China. According to Wells Fargo, exposure to the exact prices of the company varies depending on whether the article is sold via the first parts of Amazon or a third -party seller operating on the market, according to Wells Fargo. “Chinese factories are very sub-capitalized. It is because they do not have a consumption model in their own country. They will therefore have to sell these goods elsewhere,” said Jim. Consumption represented almost 56% of the Chinese gross domestic product in 2023, according to the World Bank data, against around 81% for the United States which sells these goods elsewhere would not be a little feat. This is why Jim thinks that there can be a room for maneuver in increasing price rhetoric between Washington and Beijing. Treasury secretary Scott Bessent echoes this feeling during an interview on Wednesday morning on “Squawk Box” by CNBC. He said, “What do we lose by the Chinese prices that increased on us? We expand a fifth vers them of what they export us, so it's a losing hand for them.” The threat of a world trade war started seriously last week when Trump announced a two-step approach to prices: 10% on almost all imports in the United States, and even more specific to the country, as a 34% sample against China. The first entered into force on Saturday. The second should come into force on Wednesday. Unsurprisingly, China has threatened its own 34% prices on imports from the United States – to which Trump threatened 50% samples against China for declaring that he would retaliate. China has promised to “fight until the end” on trade. The stock market dived Thursday and Friday and whipped on Monday due to all the uncertainty created by the prices, which the president unveiled last Wednesday after the Wall Street closing bell. The market rebounded Tuesday on hopes for pricing offers. Although China is difficult, other countries seem ready to speak. Bessent said: “If they come to the table with solid proposals, I think we can end up with good deals.” Amazon did not immediately respond to the request for CNBC comments on Jim's remarks. (Jim Cramer's Charitable Trust is long amzn. See here for a full list of actions.) As abonten at the CNBC Investing Club with Jim Cramer, you will receive a commercial alert before Jim is doing a business. Jim is waiting for 45 minutes after sending a commercial alert before buying or selling a stock in the portfolio of his charitable trust. If Jim spoke of a stock on CNBC TV, he waits 72 hours after issuing the commercial alert before running the trade. The above information of investment clubs is subject to our terms and conditions and our privacy policies, as well as our warning. No obligation or fiduciary duty exists, or is created, due to your reception of the information provided in relation to the investment club. No specific result or profit is guaranteed.
In this photo illustration, an American Amazon Logo Electronic Commerce and Cloud Computing is seen on an Android mobile device with the Flag of the Popular China Republic in the background. (Photo illustration by)
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While the barrel of the United States and China is long on the deadline for Wednesday fixed by President Donald Trump, Amazon could be a secret weapon for America.
