Trade Alert: Betting Against The Bounce

Three more bearish bets on companies impacted by U.S. tariffs against China.

Fading The Tariff Relief Rally

The ostensible reason why the market is rallying today is the news from Friday night that the Trump administration was exempting items such as laptops and smart phones from its latest round of “reciprocal” tariffs on China. But there seems to be less tariff relief there than meets the eye:

• The reciprocal tariffs still apply to 78% of China’s exports to the U.S., by dollar value.

  

• The 20% tariffs the Trump administration levied on China in March still apply to all categories.

• Commerce Secretary Lutnick said yesterday that smart phones and other products granted relief from the reciprocal tariffs will get hit with separate tariffs, which may be announced within the next month.

With that in mind, I’m taking advantage of today’s rally to add a few more short positions on companies that import a significant percentage of their products or components from China, and generate a significant percentage of their revenue in the U.S.

Details below

Bearish Trade #1