Professor: Tariffs bring business costs

AlArabiya English

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

Transcript

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.

Category

Transcript

Be the first to comment

Recommended