(Reuters) -President Donald Trump said on Wednesday he would impose a 10% baseline tariff on all imports to the United States and higher duties on some of the country’s biggest trading partners, a move that could escalate a trade war and upend the global economy.
Trading partners are expected to respond with countermeasures that could lead to dramatically higher prices for everything from bicycles to wine.
LENNY LAROCCA, KPMG U.S. AUTOMOTIVE LEADER
“U.S. automakers are looking at steps they can take in the shorter term to mitigate tariffs, such as working with suppliers on any items that can be moved to the U.S. quickly without significant investment. But massive longer-term investment decisions require more time and certainty.”
“The current U.S. automakers playbook is not enough, and they are facing a watershed moment. It’s an opportunity for automakers to do things differently. Lean into emerging technology like AI across their business. Explore and decide on alliances faster. Speed up vehicle production cycle times.”
“On the supply side, this watershed moment offers opportunity in the chaos for mergers and acquisitions.”
DAVID MCCALL, PRESIDENT, UNITED STEELWORKERS (USW) INTERNATIONAL
“We must ensure our trade policy targets cheaters rather than trusted economic allies like Canada. We should be working to build relationships – not barriers – with partners who have proven their commitment to joining us in tackling global overcapacity.”
“The administration must also take steps to prevent companies from using tariffs as an excuse to price gouge consumers.”
NIGEL GREEN, CEO, GLOBAL FINANCIAL ADVISORY FIRM DEVERE GROUP
“This is how you sabotage the world’s economic engine while claiming to supercharge it.”
“It’s a seismic day for global trade. Trump is blowing up the post-war system that made the U.S. and the world more prosperous, and he’s doing it with reckless confidence.”
“Tariffs are taxes – plain and simple – and American consumers will bear the brunt.”
“The reality is stark, these tariffs will push prices higher on thousands of everyday goods – from phones to food – and that will fuel inflation at a time when it is already uncomfortably persistent.”
MIKE HAWES, CEO, UK’S SOCIETY OF MOTOR MANUFACTURERS AND TRADERS
“These tariff costs cannot be absorbed by manufacturers, thus hitting U.S. consumers who may face additional costs and a reduced choice of iconic British brands, whilst UK producers may have to review output in the face of constrained demand.”
SETH GOLDSTEIN, MORNINGSTAR ANALYST ON U.S. CHEMICALS
“I see lower volumes as a result of tariffs. The tariffs will likely be passed along to raise price of end-market products to consumers. In turn, I expect we see consumers buy fewer goods.”
“Due to the high fixed-cost nature of chemicals production, lower volumes would have an outsized impact on profits, so we could see another year of declining profits if widespread tariffs are implemented. However, many chemical producers make their products in the U.S. to be sold domestically, so we see less of a direct impact.”
DAVID FRENCH, EXECUTIVE VP OF GOVERNMENT RELATIONS AT NATIONAL RETAIL FEDERATION
“More tariffs equal more anxiety and uncertainty for American businesses and consumers. Tariffs are a tax paid by the U.S. importer that will be passed along to the end consumer. Tariffs will not be paid by foreign countries or suppliers. We encourage President Trump to hold trading partners accountable and restore fairness for American businesses without creating economic uncertainty and higher prices for American families.”
ART WHEATON, DIRECTOR OF LABOR STUDIES, ILR SCHOOL, CORNELL UNIVERSITY
“It will take years and billions of dollars to bring manufacturing jobs from new plants online, whereas expansions at existing factories could happen much sooner. However, companies prioritize stability – frequent policy changes can delay investment decisions as businesses wait for clearer, long-term signals before committing capital.”
MICHAEL ASHLEY SCHULMAN, PARTNER AND CIO AT RUNNING POINT CAPITAL ADVISORS
“Possibly, Trump in addition to bringing back manufacturing to the U.S. and leveraging our advanced robotics within our shores for that manufacturing renaissance, may also be trying to truly muck up the Chinese economy and heighten their economic instability. 34% tariffs on Chinese goods could either force many Chinese manufacturers to close, increasing unemployment and social instability in China, and/or force a temporary price level adjustment within the U.S.”
“For chips, PCs, semiconductors and server manufacturers, these tariffs, if they hold, will be quite disruptive.”
“Investors, analysts, politicians, and the market will be on bated breath to see what is now negotiated between countries following this ‘Liberation Day’ volley from the administration. Hopefully, today’s announcement is a worst case scenario, and any negotiations create improvements from here.”
(Reporting by Juby Babu in Mexico City and Vallari Srivastava, Neil Kanatt, Shivansh Tiwary, Mrinalika Roy, Unnamalai L, Jaspreet Singh and Dhanush Babu in Bengaluru; Editing by Sayantani Ghosh and Shounak Dasgupta)
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