Over $ 34 billion is estimated to have cost the business The US President’s Commercial War, Donald Trumpaccording to reuters analysis
Throughout the US, Asia and Europe, companies such as Apple, Ford, Porsche and Sony have either retired or reduced their predictions for profits, while the vast majority states that the unpredictable nature of Trump’s commercial policy makes it impossible to accurately calculate the cost.
Reuters examined corporate statements, regulatory deposits, transcript of telegraphs and media statements to compose for the first time a comprehensive picture of the cost of customs duties for world businesses to date.
The total cost is expected to increase, as continuing uncertainty around duties paralyzes decisions to some of the largest companies in the world.
The $ 34 billion is a sum of estimates by 32 companies in the S&P 500 index, three companies from the European Index Stoxx 600 and 21 companies from the Nikkei 225 Japanese index. Economists estimate that the costs for businesses will probably be multiple than the companies have so far revealed.
“You can double or triple the amount and yet we would say … that the cost of the cost is certainly much greater than most people understand,” said Jeffrey Sonefeld, a professor at the Yale School of Management.
He added that the consequences may be even worse, referring to the possible restriction of expenditure by consumers and businesses, as well as increased expectations for inflation.