Sigma Signals

Week of June 3, 2024

The Biden Administration announced a proposed set of tariffs on imported goods from China.  In particular, Chinese electric vehicles will have a 102.5% tariff rate on the value of the car.  Tariffs are imposed to protect domestic industries (i.e., the US Auto industry) from losing sales to foreign competitors that can unfairly undercut the market price of goods.  However, tariffs often end up hurting domestic consumers more than they benefit domestic industries since a lack of competition leads to less innovation and higher prices.  Our Signals remain unchanged.  

Michael Mullenax, CFP® and Bob Bilkie, CFA