Title: How to Manage Risk in a Global Trade War
Headings: What Risks Would a Trade War Bring?
What Risks Would a Trade War Bring?
Direct and Indirect Impacts
Risk Assessments Are Essential
Regaining Momentum in 2020 and Beyond
Despite economic turmoil created by the COVID-19 pandemic, recent surveys show a clear trend of CFOs taking a long view when developing their international operations strategies and cross-border M&A plans. Download the survey results and reveal: • Before the coronavirus crisis, nearly 9 in 10 companies were considering expanding into new countries • Most executives said their tax departments were not well-equipped to address cross-border concerns • Six out of 10 companies were considering or engaged in reviews of their legal entity structures

Content: Direct and Indirect Impacts
The Trump administration’s aluminum and steel tariff impositions, if implemented, will have both direct and indirect impacts on American businesses. Direct impact: The raw material import costs for U.S. producers of machinery and cars may rise. Therefore, foreign-manufactured may become cheaper for U.S. consumers. Consequently, manufacturing companies in the U.S. may see higher costs of goods sold and reductions in non-domestic sales. Indirect impact: Production and price changes will require sourcing changes. Sudden shifts that affect supply chains may impact quality and availability, since some companies may encounter issues when scrambling to reduce production in some places and ramp it up in others. Operational risk assessments will help identify areas where change can have a positive or negative impact. Indirect impact: