Is NVDA a Sell? Buy This Stock Instead Before Dec. 31

After soaring over 150% in 2024 alone... is it actually time to buy Nvidia? A 50-year Wall Street veteran gives his answer to Nvidia, right here... Including the name and ticker of one under-the-radar AI stock to buy instead of Nvidia... before Tuesday, December 31st.

Trump's threat to impose tariffs could raise prices for consumers, colliding with promise for relief

TOM KRISHER and CHRISTOPHER RUGABER
November 26, 2024

DETROIT (AP) -- If Donald Trump makes good on his threat to slap 25% tariffs on everything imported from Mexico and Canada, the price increases that could follow will collide with his campaign promise to give American families a break from inflation.

Economists say companies would have little choice but to pass along the added costs, dramatically raising prices for food, clothing, automobiles, booze and other goods.

The president-elect floated the tariff idea, including additional 10% taxes on goods from China, as a way to force the countries to halt the flow of illegal immigrants and drugs into the U.S. But his posts Monday on Truth Social threatening the tariffs on his first day in office could just be a negotiating ploy to get the countries to change behavior.

High food prices were a major issue in voters picking Trump over Vice President Kamala Harris, but tariffs almost certainly would push those costs up even further.

For instance, the Produce Distributors Association, a Washington trade group, said Tuesday that tariffs will raise prices for fresh fruit and vegetables and hurt U.S. farmers when other countries retaliate.

"Tariffs distort the marketplace and will raise prices along the supply chain, resulting in the consumer paying more at the checkout line," said Alan Siger, association president.

Mexico and Canada are two of the biggest exporters of fresh fruit and vegetables to the U.S. In 2022, Mexico supplied 51% of fresh fruit and 69% of fresh vegetables imported by value into the U.S., while Canada supplied 2% of fresh fruit and 20% of fresh vegetables.

Before the election, about 7 in 10 voters said they were very concerned about the cost of food, according to AP VoteCast, a survey of more than 120,000 voters.

"We'll get them down," Trump told shoppers during a September visit to a Pennsylvania grocery store.

The U.S. is the largest importer of goods in the world, with Mexico, China and Canada its top three suppliers, according to the most recent U.S. Census data.

People looking to buy a new vehicle likely would see big price increases as well, at a time when costs have gone up so much that they are out of reach for many. The average price of a new vehicle now runs around $48,000.

About 15% of the 15.6 million new vehicles sold in the U.S. last year came from Mexico, while 8% crossed the border from Canada, according to Global Data.

Much of the tariffs would get passed along to consumers, unless automakers can somehow quickly find productivity improvements to offset them, said C.J. Finn, U.S. automotive sector leader for PwC, a consulting firm. That means even more consumers "would potentially get priced out of the activity" of buying a new vehicle, Finn said.

Hardest hit would be Volkswagen, Stellantis, General Motors and Ford, Bernstein analyst Daniel Roeska wrote Tuesday in a note to investors. Stellantis and VW import about 40% of the vehicles they sell from Canada and Mexico, while it's 30% for GM and 25% for Ford. GM and Stellantis import more than half of their high-profit pickup trucks from the two countries, according to Bernstein.

If Trump does impose the tariffs in January, the auto industry would have little time to adjust, putting operating profits at risk for the automakers, Roeska said in an email. "A 25% tariff on Mexico and Canada would severely cripple the U.S. auto industry," he said.

The tariffs would hurt U.S. industrial production so much that "we expect this is unlikely to happen in practice," Roeska said.

The tariff threat hit the stocks of some companies that could be particularly hurt, such as auto manufacturers and Constellation Brands, which sells Modelo and other Mexican beer brands in the United States.

But the overall market held relatively steady near records as investors saw Trump's proposal as more of an opening position for negotiations rather than as a definitive policy.

It's not clear how long the tariffs would last if they are implemented, but they could force auto executives to move production to the U.S., which could create more jobs in the long run. But Morningstar analyst David Whiston said in the short term automakers probably won't make any moves because they can't quickly change where they build vehicles.

To move to the U.S., they would have to buy equipment and revamp their parts supply chain, which can take years. "I think everyone is going to be in a wait-and-see mode," Whiston said.

Millions of dollars worth of auto parts flow across the borders with Mexico and Canada, and that could raise prices for already costly automobile repairs, Finn said.

The Distilled Spirits Council of the U.S. said tariffs on tequila or Canadian whisky won't boost American jobs because they are distinctive products that can only be made in their country of origin.

In 2023, the U.S. imported $4.6 billion worth of tequila and $108 million worth of mezcal from Mexico and $537 million worth of spirits from Canada, the council said.

"At the end of the day, tariffs on spirits products from our neighbors to the north and south are going to hurt U.S. consumers and lead to job losses across the U.S. hospitality industry just as these businesses continue their long recovery from the pandemic," the council said in a statement.

Electronics retailer Best Buy said on its third-quarter earnings conference call that it runs on thin profit margins, so while vendors and the company will shoulder some increases, Best Buy will have to pass tariffs on to customers. "These are goods that people need, and higher prices are not helpful," CEO Corie Barry said.

Walmart also warned this week that tariffs could force it to raise prices, as did Footwear Distributors and Retailers of America.

Canadian Prime Minister Justin Trudeau, who talked with Trump after his call for tariffs, said they had a good conversation about how the countries can work together on the challenges they face.

"This is something that we can do, laying out the facts and moving forward in constructive ways. This is a relationship that we know takes a certain amount of working on and that's what we'll do," Trudeau said.

Trump's transition team wouldn't comment on the call.

Also Monday, Trump turned his ire to China, saying he has "had many talks with China about the massive amounts of drugs, in particular Fentanyl, being sent into the United States - But to no avail."

The Chinese Embassy in Washington cautioned on Monday that there will be losers on all sides if there is a trade war.

Trump's threats come as arrests for illegally crossing the border from Mexico have been falling. The most recent U.S. numbers for October show arrests remain near four-year lows. But arrests for illegally crossing the border from Canada have been rising over the past two years.

Much of America's fentanyl is smuggled from Mexico. Border seizures of the drug rose sharply under President Joe Biden.

The tariffs would also throw into doubt the reliability of the 2020 trade deal brokered in large part by Trump with Canada and Mexico, the USMCA, which replaced NAFTA and is up for review in 2026.

Trump transition team officials did not immediately respond to questions about what authority he would use, what he would need to see to prevent the tariffs from being implemented and how they would impact prices in the U.S.

Mexico's Foreign Relations Department and Economy Department also had no immediate reaction to Trump's statements.

___ Rugaber reported from Washington. AP reporters Dee-Ann Durbin in Detroit, Stan Choe and Anne D'Innocenzio in New York, and Rob Gillies in Toronto contributed to this report.

Continue Reading...

Popular

Warren Buffett Says Parents Should Do This One Thing Before They Die, Whether They Are Rich Or Not

Legendary investor Warren Buffett has a piece of critical advice for parents that he believes they should follow, regardless of their wealth status.

Small business owners brace for Trump's proposed tariffs

Small businesses are bracing for stiff tariffs that President-elect has proposed as .

Has the Tech Stock Selloff Finally Arrived? - Ad

After soaring over 150% in 2024 alone... is it actually time to buy Nvidia? A 50-year Wall Street veteran gives his answer to Nvidia, right here...Including the name and ticker of one under-the-radar AI stock to buy instead of Nvidia... before Tuesday, December 3rd.

SpaceX Tests Starship Booster Ahead Of Next Flight: Will The 7th Test Happen Before End Of 2024?

SpaceX is preparing for another test flight of its Starship launch vehicle, possibly before the end of the year. The company has moved the booster to the launch pad for testing and has conducted six test flights so far.

Commanders hire Campbell's CEO Mark Clouse as their new team president

WASHINGTON (AP) — The hired Mark Clouse as their new team president Tuesday, putting the longtime food executive in charge of all facets of the organization's business operations when he starts in late January.

Wall St Legend: Buy This Stock Before Inauguration - Ad

This is the best election year for stocks since 1936. But according to one 50-year insider, not everything is as rosy as it seems on Wall Street...

Musk Fuels Speculation On US Bitcoin Reserve As Crypto Surges

Elon Musk has ignited speculation regarding the potential creation of a U.S. Bitcoin (CRYPTO: BTC) strategic reserve.

Brazilian beef and leather companies fall short in tackling deforestation, a study finds

BRASILIA, Brazil (AP) — The next United Nations climate conference, COP30, will be held in Belem, the capital of an Amazon region where widespread deforestation mainly driven by cattle farming has turned the surrounding rainforest from a vital carbon sink into a significant carbon source.

My TOP Altcoin for Right Now Is... - Ad

Searching for the top investment opportunity in crypto? Look no further. Our $3 report gives you the full scoop. You'll get this exciting token's name, our recommended investment strategy, and growth projections. Time is of the essence with this one...

44 years after New York couple vanished, car matching description of theirs is found in Georgia

BRUNSWICK, Georgia (AP) — A car similar to one driven by a wealthy New York couple missing for more than four decades has been found in a south Georgia pond near the hotel where they were last seen, police in Georgia said.

Eli Lilly invests $3B to expand Wisconsin factory to help meet demand for Mounjaro, Zepbound

Eli Lilly is spending another $3 billion to bulk up manufacturing as the drugmaker seeks to stoke production of some and future products.

Gates-Backed Company Holds the Future of AI - Ad

Bill Gates is making his next big bet. And this time, it's with artificial intelligence. Over the last several years, Gates has quietly invested more than $750 million into this technology. And he's not the only one. Warren Buffett, Peter Thiel, Jeff Bezos, and others are in on it too. In this new exposé, Porter Stansberry shares all the details.

China bans exports to US of gallium, germanium, antimony in response to chip sanctions

BANGKOK (AP) — China announced Tuesday it is banning exports to the United States of gallium, germanium, antimony and other key high-tech materials with potential military applications.

Broadcom Likely For Upside Backed By AI Pipeline, Market Recovery, VMWare Synergy: Analyst

JP Morgan analyst maintains Overweight rating on Broadcom Inc with price target of $210. Expects better than expected earnings and growth in AI products, with strong demand and revenue opportunities.

What's Going On in This Strange Facility Near Mar-A-Lago? - Ad

Most people have no clue this unassuming facility exists. Yet the minute Donald Trump takes office... This could be the most important building in America. More important than the Capital, the Pentagon... even the White House. Because this may well be the epicenter of Trump's New Manhattan Project.

SEC Approves America's First 24-Hour Stock Exchange — What It Means For You

U.S. regulators approved the nation's first 24-hour stock exchange on Wednesday, marking a significant shift in American securities trading as retail investors increasingly demand round-the-clock market access.

Edmunds: The best midsize SUVs for families in 2025

Along with smartphones and streaming subscriptions, the three-row SUV is now a staple of American family life. And since nearly every automaker sells one, choosing the right one can feel overwhelming.

Did You See Trump's Bombshell Exec. Order 001? - Ad

Biden broke it... Now Trump is going to fix it. Starting with "Exec. Order 001." It's a bombshell law that Trump could sign within minutes of stepping into the Oval Office... And it will instantly set off the most sweeping government technology project in 80 years... The most lucrative, too...

Gary Black Boosts Tesla Price Target By 27% To $380 Based On 'Increased Conviction' That Elon Musk-Led Company Will Launch $25K Hatchback

Tesla Inc. could see significant growth from a new budget electric vehicle offering, according to prominent investor Gary Black, who raised his price target for the EV maker by 27% to $380 from $300 on Monday, Dec. 9, 2024.

There's Only ONE AI Company That Matters - Ad

It's not Nvidia, AMD, IBM, or any new startup. It's not even an artificial intelligence company... yet it holds the key to the entire AI market. Get all the details of the critical technology that the entire AI sector needs to survive.

Apple Eyes Sony Partnership For Game-Changing Vision Pro Upgrade

Apple and Sony are reportedly joining hands to augment the gaming capabilities of the Vision Pro.

Trump Admin's Crypto Push Revives Industry Hopes For Banking Access

Cryptocurrency sector seeks reset with banks after strained relations and regulatory crackdowns. Trump's election brings hope but banking challenges persist. Congress probes restricted access.

Donald Trump Can't Save You From This Crisis - Ad

A huge economic crisis is about to strike America. 12 months from today, our country could be unrecognizable. That's why I've recorded this video and released it for free. Inside, I lay out exactly what's happening and several critical moves I believe every American should make right now.

US hiring likely rebounded last month after storms and strikes curtailed October job growth

WASHINGTON (AP) — Hiring in the United States likely rebounded last month from a dismal October, when hurricanes and strikes reduced job growth to its lowest level in nearly four years.

A timeline of the murder of UnitedHealthcare CEO Brian Thompson and the search for his killer

NEW YORK (AP) — The for UnitedHealthcare CEO ’s killer since Thompson was ambushed Wednesday outside a Midtown Manhattan hotel has stretched beyond New York City. While still looking to identify the suspect, the FBI has offered a for information leading to his arrest and conviction. That’s on top of a $10,000 reward offered by the NYPD.

Is NVDA a Sell? Buy This Stock Instead Before Dec. 31 - Ad

After soaring over 150% in 2024 alone... is it actually time to buy Nvidia? A 50-year Wall Street veteran gives his answer to Nvidia, right here... Including the name and ticker of one under-the-radar AI stock to buy instead of Nvidia... before Tuesday, December 31st.

Ethereum ETF With Integrated Staking To Be Approved In The Future: Bernstein

Ethereum (CRYPTO: ETH) ETFs could soon offer staking yields, marking a significant evolution in institutional crypto investment, according to a new Bernstein report.

Donald Trump Shifts Stance On Jerome Powell, Says No Immediate Plans To Replace Fed Chair: 'I Don't Think So'

President-elect Donald Trump said on Sunday, that he has no immediate plans to remove Federal Reserve Chairman Jerome Powell after getting elected in November, marking a notable shift in his stance toward the central bank leader ahead of a crucial December Fed meeting.

Exposed: 3 Cent Crypto to Explode December 16th? - Ad

Chris Rowe, the man who spotted 44 different coins that have returned over 100%, is now making the biggest crypto call of his ENTIRE career.... Because a powerful crypto event will trigger on December 16th... Sending hundreds of tiny cryptos soaring 5X, 50X, even 100X -- in just days.

Bank of America signs again with FIFA for US-hosted Club World Cup that still has no TV deals

GENEVA (AP) — World Cup sponsor Bank of America teamed with FIFA for a second time Tuesday, signing for the Club World Cup that still has no broadcast deals just over six months before games start.

Larger Fonts, Bigger Impact: iQIYI Makes Entertainment More Accessible

iQIYI introduces 'Extra Large Font' feature to enhance accessibility for senior and visually impaired users.

Why Do So Many Billionaire Investors Seem Scared of This Bull Run? - Ad

Well-connected billionaires like Warren Buffett have been selling off US stocks at an alarming rate. Today, one of America's most trusted market experts is stepping forward to explain what's really going on behind the scenes of this bull market - and why you could soon face losses of 50% or more if you do nothing.

French government faces no-confidence vote over Barnier's austerity budget

PARIS (AP) — is bracing for a no-confidence vote this week, a political reckoning almost certain to topple his fragile government and send shockwaves across the eurozone.

In Nigeria's lithium boom, many mines are illegal and children do much of the work

NASARAWA, Nigeria (AP) — Dressed in a faded pink dress, 6-year-old Juliet Samaniya squats under scorching skies to chip at a jagged white rock with a stone tool. Dust coats her tiny hands and her hair as she works hour after hour for less than a dollar a day. The landscape around her is dotted with active and abandoned mineshafts, farmland that may soon be cleared in search of more rich ore, and other mine workers — many of them children.

10 Billion Humanoid Robots on Planet Earth? - Ad

Maybe growing up, you imagined we'd all have our own personal "robot butler" roving around our home doing what we command. Believe it or not, but that's EXACTLY what will soon happen with this new "Bot Com Revolution." Elon Musk is predicting 10 billion humanoid robots by 2040. Even more amazing, Musk predicts these robots could cost only $20,000 each -- about the cost of a good used car!

He'll be the last meatpacker in the Meatpacking District. Here's how NYC's gritty 'hood got chic

NEW YORK (AP) — When John Jobbagy’s grandfather immigrated from Budapest in 1900, he joined a throng of European butchers chopping up and shipping off meat in a loud, smelly corner of Manhattan that New Yorkers called the Meatpacking District.

Match Group's Dividend Yield Outshines Peers, But User And Revenue Trends Must Improve For Share Price Boost: Analyst

JP Morgan maintains an Overweight rating on Match Group, citing potential from Tinder's AI features and strong free cash flow, despite revenue concerns.

A $50 Backdoor Play On Elon's Next "Super-IPO"? - Ad

Elon Musk has become Trump's most trusted advisors. According to one legendary investor... We are leading up to the world's first "Super-IPO" -- a company creating over $100 billion on the first day it goes public! Knowing about this "backdoor" play could be the best way to profit before the IPO...Starting with as little as $50.

Crypto Analyst Foresees Pre-Christmas Bitcoin Price Surge

Crypto analyst and pseudonymous trader Dave the Wave has predicted a potential surge in Bitcoin‘s (CRYPTO: BTC) price before Christmas, citing a favorable technical setup.

Trending Now

Information, charts or examples are for illustration and educational purposes only and not for individualized investment management This message contains commercial elements, such as advertising. We only send these offers to those who have opted in to our newsletter. Past performance is not indicative of future results. For these reasons we strongly suggest trading in a DEMO/Simulated account. The information provided by us is for educational and informational purposes only. We make no representations or warranties concerning the products, practices or procedures of any company or entity mentioned or recommended and have not determined if the statements and opinions of the advertiser are accurate, correct or truthful. If you use, act upon or make decisions in reliance on information contained or any external source linked within it, you do so at your own peril and agree to hold us, our officers, directors, shareholders, affiliates and agents without fault.

Copyright technicaltrading.org
Privacy Policy | Terms of Service