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Wall Street's reaction to Trump's reciprocal Tariffs

Donald Trump announced on Wednesday that he will impose a baseline 10% tariff on all imports into the United States, and higher duties for some of the biggest trading partners. This could lead to a trade conflict and upset the global economy.

Countermeasures from trading partners could result in a dramatic increase in prices of everything, including bicycles and wine.

LENNY LARCCA, KPMG U.S. AUTOMOTIVE LEADERS

"U.S. Automakers are looking for steps they can take to mitigate tariffs in the short term, such as working on items that can be shipped to the U.S. rapidly without major investment." Massive longer-term investments require more time and clarity."

The current playbook of the U.S. automobile industry is insufficient, and it's a momentous time for them. Automakers have an opportunity to change the way they do business. Leverage emerging technologies like AI in all areas of their business. Explore and make alliances quicker. "Speed up the vehicle production cycle time."

This watershed moment presents an opportunity for mergers and purchases.

DAVID McCALL, PRESIDENT UNITED STAINWORKERS INTERNATIONAL

We must make sure that our trade policy is aimed at cheaters and not trusted economic allies such as Canada. We should work to build relationships, not barriers, with partners who have shown their commitment to join us in tackling the global overcapacity.

The administration must also take measures to prevent companies using tariffs to increase prices on consumers.

NIGEL GREEN is the CEO of DEVERE GROUP, a global financial advisory firm.

This is how you can sabotage world economic engines while claiming that they are supercharged.

"It is a historic day for the global trade." Trump is destroying the post-war economic system that has made the U.S., and the rest of the world, more prosperous. He's doing this with reckless confidence."

"Tariffs, plain and simply, are taxes. The American consumer will be the one to bear the brunt."

"The truth is that these tariffs are going to push up prices on everyday items - like phones and food - at a time where inflation is already unbearably persistent."

MIKE HAWES is the CEO of UK's Society of Motor Manufacturers and Traders.

The tariffs cannot be absorbed, and the U.S. consumer may pay more for British products, while UK producers could have to reduce production due to a constrained market.

SETH GOLDSTEIN MORNINGSTAR ANALYST FOR U.S. SETH GOLDSTEIN, MORNINGSTAR ANALYST ON U.S.

"I expect lower volumes due to tariffs." Tariffs are likely to be passed on to the consumer in order to increase prices of products. "I expect that consumers will buy less goods."

Due to the high fixed costs of chemical production, lower volume would have a large impact on profits. We could also see a further year of falling profits if tariffs are widely implemented. Many chemical producers manufacture their products in the U.S. for domestic sales, so there is less direct impact.

DAVID FRENCH EXECUTIVE V.P. OF GOVERNMENT RELATIONS AT THE NATIONAL RESTAURANTS FEDERATION

"More Tariffs = More Anxiety and Uncertainty for American Businesses and Consumers. Tariffs represent a tax that is paid by U.S. importers and passed on to the final consumer. No foreign country or supplier will pay tariffs. "We encourage President Trump, to hold trading partners responsible and restore fairness for American business without creating economic instability and higher prices for American family."

ART WHEATON DIRECTOR, ILR SCHOOL CORNELL UNIVERSITY, DIRECTOR, LABOR STUDIES

It will take years and billions to bring new manufacturing jobs online. However, expansions in existing factories can happen much faster. Companies prioritize stability. Frequent policy changes can slow down investment decisions, as businesses wait to see clearer long-term signals.

MICHAEL ASHLEY SCHULMAN IS A PARTNER AT RUNNINGPOINT CAPITAL ADVISORS AND THE CIO.

"Trump may be trying not only to bring manufacturing back to the U.S. but also to increase the economic instability of China by putting tariffs on Chinese goods. Tariffs of 34% on Chinese products could force Chinese manufacturers to shut down, increasing social unrest and unemployment in China.

If these tariffs are imposed, they will have a significant impact on the PC, server, and semiconductor manufacturers.

Investors, analysts and politicians will all be watching with bated breathe to see what happens after this 'Liberation Day volley' from the administration. The announcement today is likely to be a worst-case scenario. Hopefully, any negotiations will lead to improvements. Reporting by Juby B. in Mexico City, and Vallari S., Neil Kanatt, Shivansh T., Mrinalika R., Unnamalai L., Jaspreet S., and Dhanush B. in Bengaluru. Editing by S. Ghosh, Shounak Dasgupta, and Shounak D.

(source: Reuters)