Trump, Tariffs and Trade Wars
US President Donald Trump has just implemented new steel and aluminum tariffs, the most recent in a series of protectionist measures that he has enacted since he was inaugurated in January 2017.
The EU, among others, has promised to fight back with retaliatory tariffs designed to inflict pain on Republican incumbents. Though the risk of a trade war is elevated, our base-case view over the short term assumes a limited impact on multinational companies’ operations.
However, firms should proactively assess what contingency steps they can take, particularly for supply chains between the US and the EU and China, where there is the greatest risk of disruption.
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