Trump Tries to Force Xi to Make a Deal

Trump has imposed a 104 percent tariff on Chinese goods

As of 9pm EST, the United States started imposing a whopping 104 percent tariffs on Chinese imports. The extra 50 percent was added this evening because US President Donald Trump claimed China refused to back down from its counter tariffs.

Beijing refused to bow to what it called "blackmail" and vowed to "fight to the end."

Trump said at a black-tie dinner tonight that China "wants to make a deal, badly, but they don't know how to get it started."

Will Xi bargain with Trump to lower tariffs?

He seems to be trying to force President Xi Jinping to come to the negotiation table, but will Xi concede the need to make a deal?

So far Xi has been pretty aloof, but with tariffs at 104 percent surely he has to act now.

However, the US is more dependent on China than Trump cares to admit. 

At the same time there is no way the US will fulfill Trump's vision of manufacturing moving back to America again. 

Can you imagine Americans actually standing for hours on end assembling iPhones or sewing denim jeans being paid by the piece?

It's not going to happen. Manufacturing went off shore back in the 1990s and labour costs are too prohibitive for them to return to the US, let alone finding people willing to do that work.

People online are speculating whether Walmart will raise prices 104 percent to match the tariffs. If that happened that could spell the end of Walmart!

Now people are starting to realise how dependent they are on imported goods, and what this means for their wallet.

For everyone outside of the US, how about we cut America out and make a deal on trade? 

Sam's Club Muscles its Way into Hong Kong

Sam's Club will extend shopping and delivery to Hong Kong

Hong Kong retailers will have massive competition coming soon, as warehouse megastore Sam's Club, owned by Walmart, will begin offering online shopping and delivery services, with free delivery for purchases over 599 yuan (US$83).

"So far there has not been online shopping for Hong Kong people. There will be a roll-out of such service with direct delivery within two months. But customers need to be a member... and memberships can't be shared with others," an employee familiar with the matter said.

The membership offers a one-year membership for two people at 260 yuan, while a premium membership at 600 yuan offers more benefits.

HKers already shop in Shenzhen for deals

The news of this retail development had some industry observers describing it as "a retail crisis".

Many Hongkongers are going north on the weekends to shop at Costco and Sam's Club already, and the latter's new service will make it even more convenient to take advantage of really cheap goods, from toilet paper to snacks and electronic goods.

The first Sam's Club outlet in China opened in 1996 in Shenzhen, and today it was 44 shops in 25 cities across the country.

Economist Simon Lee Siu-po, an honorary fellow at the Chinese University of Hong Kong's Asia-Pacific Institute of Business believes Sam's Club's new service will be a severe blow to local supermarket chains and HKTVmall, an online shopping platform.

"Sam's Club's offering is bulk purchase with cheap deals. With online shopping and delivery for Hongkongers, they no longer need to stock up food or necessities in local stores," he said.

People buy snacks, toilet paper, electronic goods

"Supermarkets and online platform HKTVmall will be hard hit. Coupled with internal troubles, this will be an aggression from abroad. I am afraid this will cause a retail crisis in Hong Kong."

He believed the only way to protect the local retail industry is to impose a sales tax.

Indeed HKTVmall has already taken a big hit -- its net profit fell 78.65 percent to HK$45.3 million (US$5.8 million) last year from HK$212.2 million in 2022.

In March company vice-chairman Ricky Wong Wai-hay predicted a fall in local consumption amid weakened sentiment.

"In parallel with the influence from the external and global economic and political environment, we anticipate a decline in the local consumer market... growth as in the past will be unlikely," he said.

It's going to be a tough road ahead for Hong Kong retailers. Local residents just want the cheapest stuff they can get as their priority; supporting local businesses has gone out the window...

Hongkongers Flock to Warehouse Stores in Shenzhen

Hongkongers are joining tours that take them to Sam's Club

For Hongkongers, visiting Costco in North America is a wide-eye opening experience. 

The members-only warehouse store sells everything from milk to laptops, refrigerators and roast chickens at very good prices. Hongkongers look in wonder at products stacked on pallets and items sold in bulk or in giant containers that would take a while to use up.

There is no Costco in Hong Kong otherwise Park 'n' Shop and Wellcome would be up-in-arms if that kind of rivalry elbowed its way into the city. People would need bigger flats too to store all this stuff in bulk. 

Everything here is much cheaper than in HK

However, there is competition south of the border, as Hong Kong residents eagerly sign up for shopping tours to Shenzhen, where one stop on the itinerary is at Sam's Club, a warehouse store operated by Walmart, and named after Sam Walton, the founder. 

There are 44 Sam's Clubs in 25 cities in China, including Beijing, Shanghai, Dalian, Hangzhou, Xianmen, Chengdu, Shenyang and Ningbo.

As part of the tour, visitors can get a one-year membership for two people for 260 yuan (US$37), which can easily be made back from buying everything from food to giant-screen TVs.

The tours are especially popular with young people who are eager to find deals, as well as products they can only find on the mainland. 

They can snap up fresh seafood, frozen dumplings, Godiva chocolates, Ippudo instant noodles, and even fresh hairy crabs.

Wandering the warehouse store is eye-popping

Who knew young Hongkongers would be so keen to shop in Shenzhen?

But with inflation soaring in the city, it's become a novelty to discover bargains galore in warehouse stores.