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: This is because most tariffed products can’t easily be replaced, so they will continue to be purchased and this time at higher prices. Hence, if no deal is reached by March 2, Trump has said he will proceed with raising tariffs to 25 percent from 10 percent on $200 billion worth of Chinese imports, at a time when China’s economy is slowing significantly. On the other hand, Beijing has retaliated in turn to U.S. tariffs. When a tariff is applied to a particular good, here’s what can happen: Low Profitability
Due to the trade war, it is certain that in some industries, companies will be reluctant or unable to pass the cost onto their customers. 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.