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: 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. For instance: “ demand destruction” is already being experienced in an industry that was one of the first to be involved by the imposition of tariffs at the start of 2018: washing machines. In fact, the same thing could happen to other items, including other big purchases such as cars, if tariffs are applied to them. Besides, tariffs have other negative effects.