Waffles for the Win
Workarounds are the thing to avoid onerous tariffs
Investors starting to think that bark is worse than the bite
PLUS we are now on Spotify and Amazon Music/Podcasts!
Click HERE for Show Notes and Links
DHUnplugged is now streaming live - with listener chat. Click on link on the right sidebar.
Love the Show? Then how about a Donation?
Follow John C. Dvorak on Twitter
Follow Andrew Horowitz on Twitter
Warm-Up
- Waffles for the Win
- Workarounds are the thing
- Learning about the First Sale Rule
Markets
- 42 Days? And counting
- Investors starting to think that bark is worse than the bite
- US Steel Deal - WOW!
- Fresh steam for speculation - lots of movement
Waffling
- What are your favorite way to eat waffles?
- Friday - 50% on Europe - Blah Blah
- 25% on Apple and every smartphone maker that brings in product to USA
- Sunday - Delay the Europe tariffs until July 9th
- Not sure where we are on
Results
- Markets swoon on the initial Europe Tariff announcement
- Markets (Overnight Futures) Popped higher on the Waffle
- Apple will look to eat and see a cut to margins -
---- Surely Apple will promise to build plants in the US and slow role it to get some relief
--- Apple recently announced a 250,000-square-foot advanced manufacturing facility in Houston that is expected to begin operations in 2026, indicating a timeline of roughly 1.5 to 2 years from announcement to production start (managed by Foxconn - manufacturing AI Driver Servers
China - Not bad
- China’s industrial profits rose for a second straight month in April, with their growth improving despite U.S. tariffs and persistent deflationary pressures, thanks to Beijing’s measures aimed at supporting businesses.
- Cumulative profits at major industrial firms climbed 3% last month compared to a year earlier, official data showed Tuesday, accelerating from a 2.6% growth in March.
- In the first four months this year, industrial profits rose 1.4%, year on year, according to the National Bureau of Statistics, bolstered by stronger earnings in the equipment and high-tech manufacturing sectors.
Facts though first:
- Foxconn’s Zhengzhou campus in China, often called “iPhone City,” spans over 1.4 million square meters (15 million square feet) and employs hundreds of thousands of workers. Approx 80% of Apple's annual iPhone production)
-- To replicate this in the U.S., Apple would likely need multiple facilities totaling 10–15 million square feet or more, depending on automation levels and vertical integration.
First Sale Rule
- Love this!-
- The first sale rule has been around since 1988
--- This is why markets/stocks/companies will always win
- The “first sale rule” is a concept in U.S. customs law that allows importers to use the lowest cost of a good to calculate duties.
- Under U.S. customs law, the first sale rule allows importers to base customs duties on the price of the initial transaction in a multi-tiered supply chain.
Example scenario:
A Chinese manufacturer sells a t-shirt to a Hong Kong vendor for $5.
The Hong Kong vendor resells it to a U.S. retailer for $10.
The U.S. retailer sells it to consumers for $40.
- Using the first sale rule, the U.S. retailer can declare the $5 price for customs purposes, rather than the $10 resale price.
- This approach reduces the duty owed by excluding the middleman’s markup.
Asked AI to make easier to understand in an infographic
AI Info-graphic
Boeing Update
- The U.S. Justice Department said Friday that it has reached a deal with Boeing
- That will allow the aircraft maker to avoid prosecution over two crashes of its 737 Max planes that killed 346 people.
- The non-prosecution agreement would allow Boeing, a major military contractor and top U.S. exporter, to avoid being labeled a felon.
- The decision means Boeing won’t face trial as scheduled next month,
Workarounds are the thing to avoid onerous tariffs
Investors starting to think that bark is worse than the bite
PLUS we are now on Spotify and Amazon Music/Podcasts!
Click HERE for Show Notes and Links
DHUnplugged is now streaming live - with listener chat. Click on link on the right sidebar.
Love the Show? Then how about a Donation?
Follow John C. Dvorak on Twitter
Follow Andrew Horowitz on Twitter
Warm-Up
- Waffles for the Win
- Workarounds are the thing
- Learning about the First Sale Rule
Markets
- 42 Days? And counting
- Investors starting to think that bark is worse than the bite
- US Steel Deal - WOW!
- Fresh steam for speculation - lots of movement
Waffling
- What are your favorite way to eat waffles?
- Friday - 50% on Europe - Blah Blah
- 25% on Apple and every smartphone maker that brings in product to USA
- Sunday - Delay the Europe tariffs until July 9th
- Not sure where we are on
Results
- Markets swoon on the initial Europe Tariff announcement
- Markets (Overnight Futures) Popped higher on the Waffle
- Apple will look to eat and see a cut to margins -
---- Surely Apple will promise to build plants in the US and slow role it to get some relief
--- Apple recently announced a 250,000-square-foot advanced manufacturing facility in Houston that is expected to begin operations in 2026, indicating a timeline of roughly 1.5 to 2 years from announcement to production start (managed by Foxconn - manufacturing AI Driver Servers
China - Not bad
- China’s industrial profits rose for a second straight month in April, with their growth improving despite U.S. tariffs and persistent deflationary pressures, thanks to Beijing’s measures aimed at supporting businesses.
- Cumulative profits at major industrial firms climbed 3% last month compared to a year earlier, official data showed Tuesday, accelerating from a 2.6% growth in March.
- In the first four months this year, industrial profits rose 1.4%, year on year, according to the National Bureau of Statistics, bolstered by stronger earnings in the equipment and high-tech manufacturing sectors.
Facts though first:
- Foxconn’s Zhengzhou campus in China, often called “iPhone City,” spans over 1.4 million square meters (15 million square feet) and employs hundreds of thousands of workers. Approx 80% of Apple's annual iPhone production)
-- To replicate this in the U.S., Apple would likely need multiple facilities totaling 10–15 million square feet or more, depending on automation levels and vertical integration.
First Sale Rule
- Love this!-
- The first sale rule has been around since 1988
--- This is why markets/stocks/companies will always win
- The “first sale rule” is a concept in U.S. customs law that allows importers to use the lowest cost of a good to calculate duties.
- Under U.S. customs law, the first sale rule allows importers to base customs duties on the price of the initial transaction in a multi-tiered supply chain.
Example scenario:
A Chinese manufacturer sells a t-shirt to a Hong Kong vendor for $5.
The Hong Kong vendor resells it to a U.S. retailer for $10.
The U.S. retailer sells it to consumers for $40.
- Using the first sale rule, the U.S. retailer can declare the $5 price for customs purposes, rather than the $10 resale price.
- This approach reduces the duty owed by excluding the middleman’s markup.
Asked AI to make easier to understand in an infographic
AI Info-graphic
Boeing Update
- The U.S. Justice Department said Friday that it has reached a deal with Boeing
- That will allow the aircraft maker to avoid prosecution over two crashes of its 737 Max planes that killed 346 people.
- The non-prosecution agreement would allow Boeing, a major military contractor and top U.S. exporter, to avoid being labeled a felon.
- The decision means Boeing won’t face trial as scheduled next month,
Activity