Title: How will the US-China trade war affect global Supply Chain? | Corporate training Skill Dynamics
Headings: How will the US-China trade war affect global Supply Chain?
How will the US-China trade war affect global Supply Chain?
Low Profitability
Prices increase
Demand declines
US China Trade war – Is it the right approach?

Content: Therefore, this implies reduced profits for the company. At the same time, for public companies, earnings will be affected and therefore could also impact stock prices. Let’s take for example Alcoa, the largest producer of aluminium in the US. At first glance, anyone would assume that Alcoa would benefit from tariffs on foreign producers of aluminium; but it’s not that simple. In fact, Alcoa’s input costs have risen because it utilizes a significant amount of primary aluminium from Canada, which it melts to produce its own aluminium. In an interview, the CEO of Alcoa has diplomatically argued that not only do tariffs hurt profitability, they distort the market and make it less efficient “by incentivizing the restart of aged, inefficient capacity” in the United States. Prices increase
Due these tariffs, many companies may decide to pass the cost on their customers which is the case for Apple, for example. Thus, this means that consumers pay more for the same item, leaving them less money to spend on other goods or services. Demand declines
As companies pass the cost of tariffs to their customers, at the same time, demand decreases because consumers would want to cut back their purchases.