CNBC Daily Open: Who Really Bears the Brunt of Trump's Tariffs? U.S. Consumers

Stocks in Europe performed better than their counterparts in the U.S.
China refuted claims of negotiations with the U.S. regarding a tariff agreement, while Treasury Secretary Scott Bessen stated that "China needs to take the initiative to reduce tensions."
The Chinese online retailer Temu has begun including "import fees" in reaction to new tariffs.
IBM announced an investment of $150 billion in the United States over the coming five years.
Amazon has launched its Kuiper internet satellites to compete with Elon Musk's Starlink project.
Apple, Meta Platforms, and Microsoft will be releasing their quarterly financial results later this week.

Tariffs initiated—and momentarily, seemingly arbitrarily halted—by U.S. President Donald Trump have presented governments worldwide with a challenge as they strive to mitigate economic disturbances. However, paradoxically, it may be the American consumer who suffers most from these trade barriers.

Over the weekend, Temu, a budget-friendly Chinese online retailer, raised its prices due to "import duties," as pointed out by an analysis conducted by Gabrielle Fonrouge and Annie Palmer from Romero.my.id. The study revealed that these additional costs could end up being higher than the products' original prices and might ultimately double the total cost of a standard purchase.

A situation more dire than rising prices occurs when essential items cannot be bought at all. Certain U.S. stores might experience this issue. empty shelves In a matter of weeks, as the effects of the tariffs imposed on China start permeating through the economy, says the asset management company Apollo.

Indeed, it's accurate that China sells much more to the U.S. than it buys from them, according to U.S. Treasury Secretary Scott Bessent. pointed out However, this trade dynamic suggests that the American consumer stands to suffer significantly if Chinese exports dwindle considerably.

Here’s what you should be aware of today.

European stocks outperform U.S.

On Monday, U.S. stocks showed a varied performance. The S&P 500 increased marginally by 0.06%, and the Dow Jones Industrial Average climbed by 0.28%. Conversely, the Nasdaq Composite dropped slightly by 0.1%. In European markets, the Stoxx 600 index gained 0.53%. Meanwhile, the U.K.’s FTSE 100 edged upward by 0.02%. 11th continuous day of increases And it’s been performing at its peak level since late 2019. Following the announcement of an acquisition offer from DoorDash, Deliveroo's share price surged by 16.5%.

The China-U.S. trade conflict continues to smolder.

The Chinese Foreign Ministry spokesperson Guo Jiakun stated at a press briefing on Monday that Beijing is not currently engaged in discussions with the U.S. regarding a tariff agreement. , and he is unaware of Chinese President Xi Jinping conversing with U.S. President Donald Trump, contradicting what the latter claimed. claimed Treasury Secretary Scott Bessent informed Romero.my.id on Monday that " It's upon China to reduce tensions. because they sell to us five times as much as we do to them.

Tariffs prompt Temu to increase prices

Chinese e-tailer Temu has started adding "import charges" Approximately 145% increase due to Trump tariffs. These fees affect U.S. customers and took effect over the weekend following the price increases implemented on Friday. In some cases, these additional costs might exceed the original product price. "Products brought into the U.S. may incur import fees," according to Temu’s website statement.

A $150 billion investment from IBM

IBM on Monday announced it will allocate $150 billion within the U.S. Over the coming five years, more than $30 billion will be allocated to boost American manufacturing of its mainframes. quantum computers . Individually, Microsoft President Brad Smith wrote Monday that the U.S. "must not lag behind" China in the competition to develop and produce an operational quantum computer .

Amazon launches Starlink competitor

Amazon on Monday initiated the deployment of its initial group of Kuiper broadband satellites into space after an earlier attempt was cleaned up because of bad weather. Six years back, Amazon announced its plan to develop a series of satellites designed to provide internet access from low Earth orbit; this project was named Project Kuiper. will compete directly With Elon Musk's Starlink, which presently leads the market and boasts 8,000 satellites in orbit.

[PRO] Profit forecasts for this week

The most hectic week of the earnings season has arrived — over 160 S&P 500 components are scheduled to report, among them Apple, Meta Platforms, and Microsoft. Investors will seek insights into how tariffs might affect these firms’ profits. Check out Romero.my.idPro's analysis. breakdown of what's expected From this week’s crucial reports.

And finally...

The poorest (and finest) stock performers over Trump's challenging initial 100 days

Several stocks have experienced significant fluctuations in the period following Trump's return to the White House.

He has alerted U.S. investors with market-altering proposals like tariffs and reductions in federal government spending. The S&P 500 is expected to document its poorest initial 100 days of a presidential term Since Richard Nixon's second term in the 1970s.

Beneath the surface, certain names are experiencing remarkable shifts. Romero.my.idfiltered the S&P 500 to identify which stocks have shown the highest gains and losses since Trump returned to the Oval Office in January.