President Trump's administration is considering tariffs on a broad range of imported goods, creating more global economic uncertainty. These tariffs would disrupt global supply chains and lead to higher consumer prices, especially in sectors like automotive, electronics, and pharmaceuticals. Retaliatory measures from trade partners, particularly China, Canada, and Mexico, are likely, sparking a risk of trade wars. For companies, it will remain crucial to diversify production networks and find ways to absorb higher costs.
Changing US trade policy adds to economic uncertainty and can lead to trade wars
The tariffs President Trump's administration is considering would impact a broad range of trade partners and goods. They would impact Chinese, Canadian, Mexican and EU imports, especially in areas where the US has the largest trade deficit.
Such strategy creates more economic uncertainty for companies. New trade tariffs also increase the risk of trade wars and increased costs for companies. In a worst-case scenario, it could cost US importers USD1.2 trillion annually.
Trade tariffs would have a significant impact on US supply chains and consumer markets
The article is property of Euromonitor International, a data analytics company, and you can find it here.
