(716) 842-0145

295 Main St Suite 914 Buffalo, NY 14203

900 Camp St Suite 4C5 New Orleans, LA 70130

Raymond James financial advisors may only conduct business with residents of the states and/or jurisdictions for which they are properly registered. Therefore, a response to a request for information may be delayed. Please note that not all of the investments and services mentioned are available in every state. Investors outside of the United States are subject to securities and tax regulations within their applicable jurisdictions that are not addressed on this site. Contact your local Raymond James office for information and availability. Links are being provided for information purposes only. Raymond James is not affiliated with and does not endorse, authorize or sponsor any of the listed websites or their respective sponsors. Raymond James is not responsible for the content of any website or the collection or use of information regarding any website’s users and/or members. Raymond James Financial Services is not affiliated with New Orleans Chamber of Commerce.


Securities offered through Raymond James Financial Services, Inc., Member FINRA/SIPC Privacy Policy</a/<a

Goldfarb Financial is not a registered broker/dealer and is independent of Raymond James Financial Services, Inc. Investment advisory services offered through Raymond James Financial Services Advisors, Inc.

Certification awarded by an independent nonprofit organization B Lab. This certification recognizes businesses that meet rigorous standards of social performance, accountability and transparency. The 2019 Best for the World lists are determined based on the verified B impact Assessments of Certified B Corporations. The B Impact Assessment (BIA) is a free Online tool designed to comprehensively measure the positive impact that businesses generate for their communities, customers, workers, and environment; administered by the independent nonprofit B Lab. Criteria can be found at https://bcorporation.net/2019-best-for-the-world. The ranking may not be representative of any one client’s experience, is not an endorsement, and is not indicative of the firms’ or the advisor’s future performance. Neither Raymond James nor any of its Financial Advisors pay a fee in exchange for this award/rating. B Impact and Best for the World is not affiliated with Raymond James.

  • Jeffrey Goldfarb

Early Thoughts on the Trade War

Tariffs | Trade War | Economy | Tesla | Jobs

Can There Ever Be A Winner?

While the Trump administration implemented tariff policies to protect domestic producers, a minor familiarity with the topic would reveal to even the most casual of readers that historically protectionist policies are harmful to the economy as a whole. As the world connects more, new markets open to businesses, and while tariffs can capture a larger producer surplus for those lucky enough to be protected, the consumers, and the producers outside the realm of protection shoulder the consequences.

One of the first targets in this “escalating trade war between the world’s two largest economies” is the American car manufacturer Tesla.[1] Due to the latest round of tariffs, the price of Tesla’s vehicles has risen 20%. To put that in perspective “The lowest-priced configuration of the Model S, for example, was hiked to about 840,000 yuan ($127,000) from 710,000 yuan ($107,000).”[2]

Owning a Tesla has become a status symbol. It’s difficult to argue that driving a Model S doesn’t highlight an individual’s wealth and while Tesla customers most likely have the means to spend an extra twenty thousand dollars on a car, a 20% price hike in such a short amount of time will hurt; it will especially hurt since China is Tesla’s second largest market and responsible for 20% of its revenue, earning the company around $2 billion in 2017.[3]

What makes this unfortunate situation so ironic is Tesla is being punished more severely than other car manufacturers because its exclusively made in the United States.[4] In other words, these tariffs were put in place to protect American companies, but the one auto manufacturer working exclusively in the United States is at risk of losing its second largest market unless it moves a part of its operation to a foreign country. This is an example of tariffs not only raising prices of goods but also possibly costing Americans their jobs.

Any opinions are those of the author and not necessarily those of RJFS or Raymond James. The information contained in this report does not purport to be a complete description of the securities, markets or developments referred to in this material. There is no assurance any trends mentioned will continue or forecasts will occur. The information has been obtained from sources considered reliable, but Raymond James does not guarantee that the foregoing material is accurate or complete. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Investing involves risk and you may incur a profit or loss regardless of strategy selected.

[1] https://asia.nikkei.com/Business/Companies/Tesla-raises-prices-by-20-in-China-as-tariffs-take-effect

[2] https://money.cnn.com/2018/07/10/news/companies/tesla-prices-china-tariffs/index.html

[3] https://money.cnn.com/2018/07/10/news/companies/tesla-prices-china-tariffs/index.html

[4] http://time.com/4677817/american-cars-brands-manufacturing/

1 view