Professor John Ryan warns that Trump’s tariffs will raise costs for US businesses as production returns home and retaliatory tariffs from the EU and China hit.
#Trumptariffs #Tariffs
#Trumptariffs #Tariffs
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00:00Wall Street opened sharply lower amid recession fears. In Europe, the market response has
00:07been much more measured, but still negative. Would you say that investors in America's
00:13listed companies are more concerned about the fallout in the domestic economy there?
00:20So, I think this is an interesting question because with the tariffs that are being put
00:27forward, there's a cost element to American businesses. So, for example, one of the purposes
00:36of these tariffs is to reshore manufacturing back to the United States. So, companies like
00:43Apple, which have a heavy presence in China, Taiwan, and other Asian countries, have made
00:51a commitment to reshore some of that back to the United States. This is all well and
00:56good, but that's going to take 12 to 18 months. And the question is, wouldn't they be as effective
01:03in the United States as they have been in those Asian countries in terms of skilled
01:07labor, et cetera? And also, if you're hitting China, you're hitting one of the countries
01:15that actually spends a lot of money on some of the technology companies actually advertising
01:21their goods, like Meta. So, that's the cost issue.