Urgent Alerts Include Biden's China EV Tariffs

The U.S. and China trade war that started after 2016 is continued. This time, the Biden administration will use tariffs against China. Traders who speculated on Nio (Nio), Li Auto (LI), Xiaomi (XIACY), and BYD (BYDDF) had a good run. They should take profits.

Watch for President Biden to announce taxes on Chinese electric vehicles. They are already at punitive levels that dissuade firms from dumping them in U.S. markets.
Needless to say, Tesla (TSLA) should retain profit margins with competition from Chinese EVs absent. It would still have to compete in China's market, where sales fell last quarter.

Expect higher taxes on Chinese solar equipment. Indirectly, Canadian Solar (CSIQ), Solaredge Technologies (SEDG), and Array Technologies (ARRY) are trading lower. First Solar (FSLR) will soon break out to new 1-year highs. It benefits from tariffs that prevent any meaningful competition.

The U.S. will tax Chinese-made medical supplies. Mckesson (MCK) should benefit.

Markets already anticipated tariffs on Chinese semiconductors. Nvidia (NVDA) continued to rebound. However, Intel (INTC) is in a downtrend from its own making. It released sub-par desktop chips and does not have a high-end GPU server chip. As a result, it is falling behind both AMD (AMD) and Nvidia (NVDA).

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