@Yk84I'm thrilled that the USA (and hopefully EU and Canada and...

@Yk84

I'm thrilled that the USA (and hopefully EU and Canada and UK and ....) will follow, because the Chinese car companies and battery makers and refiners and miners (the whole supply chain) are nothing more than CCP State Sponsored bullies trying to crush Western economies. If you understand how critical Auto Manufacturing is to economy of USA, Canada, Germany, France, etc., then you'll understand that allowing BYD (for example) free reign to enter markets is economic suicide.

Now that's not to say the introduction of Biden's tariffs (or Trump who says he wants 60%+ on all Chinese goods) wont be disruptive to the market or to Lithium stocks short term. Simply means Gov't support needs to be further (and longer) extended to the right market participants.

1. Tariffs means imported goods priced higher (all other things staying the same). Great ... so BYD is doubles in price (or China exports at half the price and when tariff collected on import it remains same price - cant see that happening and if it did it would show clearly the control CCP exerts)

2. Price up means inflation up (or just simply remains higher for longer) and in theory demand goes down ... but further Gov't incentives need introduction to keep demand in the right places - domestic manufacturing - otherwise jobs get lost (and if you read the WH press on why tariffs its about protecting US domestic manufacturing

3. Inflation up means interests rates are not reduced ... in theory US$ remains strong ... but stimulus required in (2) will put downward pressure on US$ (which secretly I think US would like as it makes their exports more competitive). Weaker dollar makes commodities priced in US$ go up (so oil for example as the oil producing nations raise price to compensate for their loss). This works for the USA too as for their domestic consumption they are self sufficient in oil (they also import crude for export as refined products which I exclude). Lithium price would go up also ... but that's what we want ... a Western supply chain not linked to China domestic price (hope they choke on their lepidolite production).

4. Short term pain for long term gain. The trick in future years is unravelling it all, as what often happens is manufacturing becomes less productive/innovative/competitice as they simply become reliant on Gov't funding (Aust car industry - anyone else remember)

Looking forward to it.