Consumers’ pain from trade war is ‘greatly exaggerated’: Storch


THEIR OWN CLUB, BUYS WITHIN THEIR OWN CLUB. GOT IT. THANK YOU.>>>LET’S STAY ON CHINA, TALK ABOUT THE IMPACT ON RETAIL HERE IN THE UNITED STATES. JERRY STORCH IS WITH US, A MAN WHO HAS RUN COUNTLESS RETAIL OPERATIONS, INCLUDING TOYS “R” US. HOW IS THIS GOING TO AFFECT ME AND CONSUMERS? AM I GOING TO BE PAYING MORE FOR BACK-TO-SCHOOL ITEMS, FOR CHRISTMAS AND HOLIDAY ITEMS?>>NO ONE COULD ARGUE THIS IS A GOOD THING, BUT I DO BELIEVE THAT THE PAIN TO CONSUMERS HAS BEEN GREATLY EXAGGERATED. THIS REALLY IS NOT CATASTROPHIC. MOSTLY BECAUSE RETAILERS WILL TAKE ACTION. THE FIRST THING THEY WILL DO IS GO BACK TO SUPPLIERS AND RENEGOTIATE THEIR PRICES. THAT WILL NOT BE A DIFFICULT CONVERSATION, PARTICULARLY GIVEN THE DEVALUATION OF THE YUAN BECAUSE THEN THEY CAN AFFORD TO CHARGE LESS FOR THE PRODUCT. SECONDLY, IF THEY CAN’T DO THAT, WILL RETAILERS RAISE PRICES. YOU ARE DEALING WITH $300 BILLION WORTH OF GOODS WITH THIS 10% TARIFFS. CONSUMERS’ PAIN IN THE U.S. IS AROUND $14 TRILLION SO THE NET EFFECT TO ANY INDIVIDUAL CONSUMER WOULD BE A FEW TENTHS OF 1% AT MOST, IF ANYTHING AT ALL. I THINK THERE’S BEEN A LITTLE BIT OF HYSTERIA ABOUT THIS. NOT SAYING IT’S GOOD BUT I THINK THE EFFECT IS EXAGGERATED. STUART: LET ME TRY TO WORK THIS OUT. IF YOU HAVE A PRODUCT VALUED — CHINA SENDS US A PRODUCT VALUED AT, SAY, $100, WHEN IT ARRIVES AT A PORT IN AMERICA IT’S VALUED AT $100 BUT THEY JUST DEVALUED SO IT’S NOT WORTH $100. IT’S DISCOUNTED. WE THEN IMPOSE A TARIFF ON IT THAT PUTS IT BACK UP TO THE $100 PRICE. SO IT’S A WASH. IS IT POSSIBLE TO SAY THIS IS A WASH?>>THAT’S WHY THEY’RE DEVALUING THE CURRENCY. THE WAY THE MATH WORKS, SAY IT’S A $100 PRODUCT LIKE YOU POSITED HERE. IF THE DEVALUATION WILL TAKE THAT DOWN TO $91, SO 9% DEVALUATION, THEN IT GOES IN BASICALLY AT 91 CENTS, YOU ADD THE 10% TARIFF YOU ARE BACK TO $100. THAT’S ASSUMING EXACTLY THOSE RATIOS AND THAT MATH. THAT’S ALSO ASSUMING YOU HAVEN’T RENEGOTIATED AND THE OTHER THINGS THE RETAILERS ARE GOING TO DO. THAT’S WHY EVERYONE IS UPSET ABOUT DEVALUATION. COUNTRIES DO THAT WHEN THEY WANT TO BECOME MORE COMPETITIVE IN EXPORTING. THAT’S WHAT’S GOING ON WITH CHINA HERE. STUART: TRUE TO SAY THIS IS A CURRENCY WAR?>>WELL, THERE IS CERTAINLY THE BEGINNINGS OF A CURRENCY WAR. I’M NOT WORRIED ABOUT WHAT’S HAPPENED SO FAR. I’M WORRIED ABOUT WHAT HAPPENS DOWN THE LINE, WHAT FURTHER COMPLICATIONS MAY BE IF PEOPLE GET INTO A FIRING WAR AND KEEP ESCALATING THE BATTLE. RIGHT NOW, AGAIN, THIS HAS BEEN EXAGGERATED, IN TERMS OF THE IMPACT ON CONSUMERS, USING WORDS LIKE PAIN AND THINGS LIKE THAT. YOU SAW RETAIL STOCKS DECLINE 10% LAST WEEK ON THIS. THE MATH DOESN’T REMOTELY APPROACH ANYTHING LIKE THOSE NUMBERS. I THINK THIS IS A LITTLE BIT OF AN EXAGGERATION. BUT IF THERE ARE FURTHER ACTIONS DOWN THE LINE AND THIS GETS KIND OF CRAZY OUT OF HAND, JUST LIKE ANY WAR, YOU NEVER KNOW WHAT CAN HAPPEN. STUART: I WANT TO ASK YOU ABOUT THE FLAGSHIP STORES CLOSING IN NEW YORK AND CHICAGO. YOU KNOW, I SEE ALL KINDS OF HIGH END STORES JUST CLOSING THEIR DOORS AND SHUTTERING UP EVEN ON FIFTH AVENUE, NEW YORK. WHAT’S GOING ON?>>HEY, LOOK, THE U.S. PROBABLY HAS TWO TO THREE TIMES AS MUCH RETAIL SQUARE FOOTAGE AS WE NEED. MEANWHILE, SALES ARE SHIFTING OUT OF BRICKS AND MORTAR ON TO THE INTERNET. THAT DOUBLE WHAMMY IS CAUSING A DRAMATIC DECREASE IN THE NUMBER OF SHOPPING LOCATIONS. THAT’S JUST GOING TO INCREASE. APPARENTLY IF WE WERE TO GET TOUGH, RIGHT NOW WITH CONSUMERS ON FIRE, IT WOULD ONLY ACCELERATE. AS FOR THE FLAGSHIPS, MANY OF THESE WERE BUILT AS BRANDING LOCATIONS. THEY NEVER DID MAKE ANY MONEY. PARTICULARLY IF YOU CHARGE THEM A TRUE COST OF CAPITAL OR IF YOU BROUGHT SOME OF THESE LEGACY RATES UP TO MARKET VALUES, THEN YOU WOULD SEE YOU WERE BASICALLY LOSING MONEY ON THESE SHOPS. SO AS RETAIL HAS GOTTEN TOUGHER, SMART MANAGERS ARE CLOSING THEIR STORES. I THINK A LOT MORE OF THAT IS

85 Replies to “Consumers’ pain from trade war is ‘greatly exaggerated’: Storch

  1. China Demands End to Tariffs…Really but, they're working so well…
    After a decade at the top (US trading partner), It's fallen not to second place…No.. third place!… Mexico and Canada got one and two.
    …and the thing is about both of those…they are not Allied to Russia with the intent of America destruction…
    Tariffs…late, but hopefully not too late…They say no good deed goes unpunished…China lifted 700 million people out of abject poverty…with American money and investment…and they go and Allie with…yep…RUSSIA!!!!!! Enough is enough…America First!

  2. Why do you keep trying to convince us when we feel it in the pocketbook! Stores have already taken advantage of this To raise prices! We will shop on line for the cheapest price! No one wants to go to the store to be shot!!

  3. Exaggerated? Look at today's stock market lol China doesn't respect Trump, China knows Trump is out 2020 so Trump is just a lame duck President walking the orange mile!

  4. This report is got no idea of economics he talks about China but he forgets they manipulate their currency there a communists country their factories are owned by the government what are you talking about news reporter go back to school or go back to economics learn about what you're talking about please as you make yourself look so dumb.

  5. As the Zuckerberg's suckers shift from retail to Amazon, retail stores will close. If you want a consumer based economy
    you are subject to the whims of the dumbest people on the planet. The dumbest people are flocking to Amazon because
    they are too stupid to recognize a rip-off. They don't understand Amazon charges the same a retailers, but don't have
    the retailer overhead. So, the suckers are screwing themselves with their own stupidity.

  6. Common Sense Economics. Also, this will cut back on Frivolous Spending reducing Landfill Waste. WIN-WIN

  7. Honestly back to school shopping was so affordable this year! It was cheaper than i have ever paid. No problems here!

  8. Also, retail locations rental should never cost more than a mortgage or house rental. Because retail spaces cost so much, many of us who cant afford a brick and mortar are going mobile. My business is mobile because retail spaces are too expensive. After you pay overhead and employees you are broke! Go mobile to save money! Until rent prices go down!

  9. I can tell you it doesn't hurt me at all. It only hurts the big guys. That's all they care about. Prices are too high on beef; so I don't buy hamburger. I buy less expensive but still nutritious chicken and sometime pork. Consumers will choose to buy something else. Simple as that. As far as soy beans; big deal. I have no stock in that. Besides; we don't need anymore soy boys; rather, milk boned men. Let the asian fill themselves with estrogen precursors etc. It will be easier to defeat them in the long run.🇺🇸

  10. Consumer toys?
    What's consumer toys?
    Toys is different from consumer toys?🤔
    Consumer toys is predefined by customer. So it's customer toys. And retailer toys for playing yoga? Like yoga mats used to do & make yoga & asanas for stress relieving?

    So yoga, mats, bags, covers, sponges, milk bottles, balloons going out of USA market? Deported the unhealthy and cultureless?🤗

  11. CHINA IS ALLEGEDLY TRADE CHEATING COUNTRY AND NEVER WANTED A FAIR TRADE WITH ANY COUNTRY. IF DEMS PRESIDENT WINS CHINA WILL ALLEGEDLY BUY THE NEW PRESIDENT (ALLEGEDLY UNDERHAND) AND KEEP GAINING ON TRADE FOREVER. DOOM & GLOOM FOR US IN LON TERM.

  12. Flagshop store is mostly brand building. It usually dont make much money. It is shift location to attract other consumers.

  13. Bring manufacturing back to the USA just comen sens more warehouse stors so people can order on line in the USA

  14. The terrible people who want this country to fail will lie about everything to deceive the other weak minded people of this country. In reality…very sad what's happening to this country.

  15. Not mentioned is tariffs are applied at the point of first sale, usually paid by a Chinese distributor or wholesaler. We see little or nothing.

  16. My question is, why is the market so dependent on China. I would think the market would diversify like we are told to do in our portfolios, so that these trade issues with China wouldn't affect us like it seems to be doing. I do think something needs to be done about China. Unfortunately my retirement savings in the hands of my portfolio investors is not looking so good.

  17. Trump is getting killed out there! Get some help from someone that didn't get Bankrupt 5 times, like Buffet to help. We are not winning at all.

  18. I rather pay a little more than have Communist China and other countries rob us blind. There's a new sheriff in town name Trump not chump Obama.

  19. Most people have no damned idea what they paid for anything last week let, alone last year. They hear it costs more and then look at the price, and then 'feel' the increase. An increase that may only exist in their mind. This is a media driven run on the markets. It's fueled by this obsession with the Dow which over exaggerates any market move. Watch your personal portfolio if you are worried, but if you are a worrier you should not be in the market. I am down $13.49 total today – diversify and sleep soundly.

  20. Let us not try to deal with China's war on our economy and infiltration into our society at many levels. Let's just wait until we are too weak to stop them. It is way past time for china to be.stopped. I'll happily pay a few more bucks for tennis shoes to accomplish that.

  21. Trade is booming in our country because of our grest prrsident trump ..the demacrats with there doom and glume is all wishfull thinking ..

  22. Start to make goods in America…stop crooked greedy gain wealthy individuals luxuries lifestyles and wealth with all people life living……

  23. Obviously they’re not making as much as when they themselves taken advantage of Americans consumers by sell high returns from low cost goods to their gain wealth from make in China……

  24. I somehow doubt that the multimillionaire CEO of a major company can relate to lower income families who struggle to stretch each nickel or the small businesses who try to survive razor thin margins.
    Try interviewing a lower middle class soybean or pork farmer whose orders have dropped or a single parent with 2 kids working 2 jobs to make ends meet.
    THOSE people I will believe.

  25. Some of the arguments on this page are bordering on the lunacy level. The US will NOT win this trade war. China are no mugs at business and the retaliation from China will hurt working people of that there is no doubt. When this was put on YouTube the Dow was down 300 as I write this it’s down 850 and y’all say you trust in Trump and God we’ll you’d better start saying double prayers cause the real pain is just around the corner

  26. If Chinese manufacturers just lowers the prices, then Trump's plan doesn't work.
    Or does it?!

    The outcome would be that the 10% would just be hidden taxes on the American people. As it already is…

  27. Devaluation of the currency can make exports cheaper and imports more expensive, which can cause higher economic growth, but a devaluation will exacerbate inflation and costs may increase over time. One of the best and well known consequence is Venezuela's Bolivar devaluation. The bolivar set to go from about 285,000 per dollar to 6 million. Venezuela's 'desperate' currency devaluation has destroyed its economy. Similarly, What China is doing proved that China faced economic difficulties.

  28. ummm why take advice from a toys R us Ceo? if his advice is so good wouldn't toys r us still be in business?

  29. Traders with the help of the media love to create uncertainty and panic in the market. There is a place in hell for them.

  30. China devaluation of currency is forcing them to eat the cost of the tariffs. Xi Jinping thinks they can wait it out but civil unrest is growing like wildfire in China due in part to the crumbling economy.

  31. Trump is a conman, a Scoundrel. Trump wants to set up sanctions so all business and any goods coming into the USA must go directly through Trump. This way Trump will be able
    to set up at first a Bribe to allow the Chinese company to do business freely
    in the USA with an annual kick back that will avoid any possible detection.
    Trump is making the USA and eventually the global market entirely based on
    corruption bribes and kickbacks.

    At this point it is a contest between Trump and his son
    in-law to see who can skim and steal the most money using their political
    position. I bet that there are hundreds and possibly thousands of fake business
    accounts and fake businesses being set up as I type to collect and conceal all
    the money.

  32. FACT: The trade war certainly will hurt China's economy and it will backfire on USA's too. Countries like Vietnam etc will benefit from it since the jobs will move to this kind of countries, but not to the US.
    RESULT: The US and China will bear the cost of trade war. The rest of the world will thank president TRUMP and some of the demagogues like Peter Nevarro/Steven Barron who have been blinded by their hatred and fear against China and have overlooked America's interest.

  33. Rump in business use to bully and not pay his contractors he has met his match, China bring rump to his knees and then drop you're pants have him suck it

  34. Idiot on TV says '…the net effect on any individual consumer would be a few tenths of one percent if it's any at all'. Economists say tariffs will cost an average family ~$1000/year. Believe who you want I guess.

  35. Hey Trump supporters. You listened to the explanation of trump atrocious behavior for over 2 years. FOX explained the problem is every single entity and person that opposes his great genius acts. If you can ignore 10 straight years of cumulative ONE BILLION losses i guess you can explain away why you are so F'ed. I mean if his treasonous actions doesn't concern you why should paying thru the nose? I mean just bend over and as the rod gets bigger and thrusts into you arse Trump, the GOP, and FOX will explain the pain is in your head. LOL.

  36. USA has already lost the trade war. Trump will be forced to capitulate sooner than later, as China has much more tricks up their sleeve to hurt US economy.

  37. Here's what's really going to happen: Years after idiot Trump leaves office the economy will crash due to his stupid policies. Republicans will blame the Democrats for the economic crash while the Democrats try to rebuild. When the economy is good again a republican president will have won the election and take all the credit.

  38. In the past week, two reports — a new Federal Reserve survey of more than 12,200 Americans about their finances and a new United Way report on financial hardship — reveal just how unstable life remains for a large number of people. Here's a rundown of the key findings: Forty percent of American adults don't have enough savings to cover a $400 emergency expense such as an unexpected medical bill, car problem or home repair.  Forty-three percent of households can't afford the basics to live, meaning they aren't earning enough to cover the combined costs of housing, food, child care, health care, transportation and a cellphone, according to the United Way study. Researchers looked at the data by county to adjust for lower costs in some parts of the country.  More than a quarter of adults skipped necessary medical care last year because they couldn't afford it.  Twenty-two percent of adults aren't able to pay all of their bills every month.  Only 65 percent of African Americans and 66 percent of Hispanics say they are “doing okay” financially vs. 77 percent of whites.

  39. China is lowering their currency not for America but for the surrounding countries. ..exporting goods will be more cheaper than Vietnam or other countries can offer ….it
    is called mass production…China labour is so cheap so that other countries can not compete with them ….Companies have to stay in China now …😊…China will wait for the election 2020 in America. …smart move of the Chinese

  40. It's Wall Street and businesses dependent on China for their goods to sell are the fear-mongers. The tariffs are an inconsequential increase to our $14T consumer-driven economy as Mr. Storch points out.

  41. Plus they didn't even mention the tariff is not on retail price. NO DEAL WITH CHINA EVER! Screw these companies, we are finally seeing wages go up after 20 years!

  42. I hate when these analysts blame the closing of all theses stores on internet sales. The internet has been out for decades, this isn’t 1991. So please discuss what’s really going on.

  43. Check out your local Good Will and Thrift shops for good quality clothes and whatever you need. Sacrifice for one year. Screw China.

  44. If you think the Americans want ''fair trade'' or a deal of some sort with China, I have a bridge you might be interested in buying. The Americans want to take China down. Simple as that. Unfortunately , an awful lot of countries that rely on selling goods to China ( China is the biggest export market for dozens of countries) will go down with her. Australia and all of East Asia for a start.

  45. Walmart profit margin is like 3%, the sales tax depending on where you live is 5-10%, think about that. Local governments make more money then Walmart while doing nothing. If you want to lower consumer prices, lower taxes.

  46. The typical family has paid an extra $1000 per year due to tariffs on US goods. The interviewee did not deny that. Instead he said that going forward the extra cost of Chinese goods will be stopped because China will no longer interfere in currency markets. For years China has artificially propped up their currency to appease trading partners. Now to prevent additional Trump tariffs from raising prices paid in the US they have walked away from currency markets. Now with no artificial interventions their currency is free to decline to the level the free market dictates. So the price of Chinese goods bought with dollars will fall. Reducing the Trump Tax imposed on US consumers.

  47. funny that on this video you can comment but the el paso videos comments were disabled…..fox a bunch of hypocrites.

  48. We don’t have to do business with China ! They steal our technology , and bootleg our products , and they make cheap garbage !

  49. Sending companies to other countries who don't have overregulation and some even slave labor by are standards. Can't compete with unfair competition.

  50. Pretty soon China will become a thing of the past. The US doesn’t need China. Adjusting to life without China is uncomfortable but not impossible. China goods are crap anyway. US retailers have become lazy. They’ve relied on Chinese crap for far too long. This is the perfect situation to force US businesses to build quality products and US consumers to buy US goods made in America. China’s all used up and showing it’s age. The years have not been kind to her and she should not expect anyone to pay top dollar for her services.

  51. Americans have turned into whimpering, cry babies who refuse to endure some short term pain for long term gain. Grow a spine America.

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