Profit from the trade war

With the ongoing trade war between China and the US, with the US charging 145% tariffs on goods imported from China, for those living outside US and China now, it is time to get rich by being the middle man.

 

Here's how.

Let's say a product used to be sold from China to the US for $100.
1. Import product for $125 from China into your country. Chinese manufacturer earns $25 more.
2. Export product for $150 to US company. You earn $25.

3. US company pays $165 for the product (due to 10% blanket tariffs), but still cheaper than the $245 if imported directly from China.

=> FREE money!!!

This is a win-win situation for the Chinese manufacturer, who earns $25 more, and the US importer, who pays $80 less. Even the US consumer who eventually buys the product will benefit from paying less (indirect) taxes to the US government.

 

Note about step 1. You need to pay the Chinese manufacturer more because this is how you do business with the Chinese. They don't like it if you reap them off (which is when you get free money at their expense, if you just buy at $100 from them and sell at $150). But if they benefit from this deal too (split the $50 between you and them), then it becomes win-win for everyone. 😉

 

Note: This works if you are living in a country that currently has a trade deficit with the US (your country buys more from the US than it sells to the US; an example is Singapore), or the US has decided not to charge additional tariffs on your country (like Russia). For a country with a trade deficit, you can sell up to the deficit, balancing the trade between your country and the US.

 

Disclaimer: This is intended to be parody, making fun at the current trade war.