Changes in the US trade policy impact a broad range of trade partners and goods and adds more uncertainty to the global economy. US importers have limited trade diversification potential, with higher trade tariffs leading to higher inflationary pressures. Retaliatory tariffs would also hurt US exporters, especially in commodity and automotive industries.
The Navigating New Trade Landscape: The Impact of US Trade Tariffs on Key Industries offers a unique insight into key trends shaping the industry world-wide and in the largest markets. Aimed at strategists and planners, it draws on the vast information resources to give top line insight across manufacturing, B2B and services sectors. Written by some of our most experienced analysts, the Global Industrial Reports are designed to provide key trends on industry’s performance, demand drivers, trade, leading companies and future trends. This allows company leaders to reflect on the behaviour and motivation driving global markets today and tomorrow.
US trade tariffs increase cost pressures
President Trump's administration is considering tariffs that would impact a broad range of trade partners and goods. This adds more uncertainty to the global economy and business landscape as well as significant cost pressures. Under the worst-case scenario trade tariffs could cost US importers USD1.2 trillion annually.
Trade diversification potential is limited
US trade diversification potential remains limited, at least in the short term. Already high production concentration in the leading supplier countries as well as lack of production capacity and technological know-how in alternative countries largely limit trade and supply diversification efforts.
Higher costs to be passed on to end-consumers
Companies, feeling significant cost pressures from higher trade tariffs, will look for ways to pass on cost increases to the end-consumer. Inflation in the US can increase by 3 p.p. due to tariffs with even higher potential impact on consumer goods such as apparel, where share of imported goods stands at 80%.
Other countries will retaliate with counter tariffs
Other countries are expected to retaliate and introduce counter tariffs on US imports. Mexico and Canada already hinted at tariffs on US products that would impact a broad range of goods. Countries are most likely to implement asymmetric measures, targeting sectors that would cause minimal negative effects on domestic markets.
Retaliatory measures would hurt US commodity and automotive sectors
US suppliers of agricultural commodities and motor vehicles would face the greatest impact from punitive counter tariffs introduced by other countries. In both industries, Mexico, Canada and China are among the key buyers of US goods, thus counter tariffs would result in significant disruptions.
Report Scope
Product coverage: Agriculture: ISIC 1, Business Services, Chemical Products, Construction and Real Estate, Education: ISIC 80, Energy, Finance and Insurance, Food, Beverages and Tobacco, Forestry, Wood and Paper, Government and Membership Organizations, Healthcare and Social Services, Hi-tech Goods, Hotels and Restaurants, Household Goods, Information and Communications, Machinery, Metal Products, Non-metallic Mineral Products, Personal Services, Pharmaceuticals and Medical Equipment, Recreation, Entertainment and Arts, Retail and Wholesale, Rubber and Plastic, Textile and Leather Products, Transport and Storage, Transport Equipment, Utilities and Recycling.
Data coverage: Market sizes (historic and forecasts), company shares, brand shares and distribution data.
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