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Executives, trade and labor associations comment on Trump's reciprocal duties

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.

Trump has already levied 25% on automobiles and auto parts.

The latest responses from business executives, unions and trade associations.

Companies

STELLANTIS

The automaker announced that it would temporarily stop production in some of its Canadian assembly plants and Mexican assembly factories, including its Windsor assembly facility in Canada.

ANTONIO BARAVALLE is the CEO of LAVAZZA

We had planned to increase the local production (in the U.S.A.) by 100%.

"We're ready to go... but there's this other element to investigate, the duties for Brasil... If they put 10% on Brazil, then the duty (of 20%) is already half.

The coffee maker produces about 50% of the amount it sells locally in the U.S.

FERRARI

The purchase contracts for Ferraris contain standard and clear clauses that allow the company to adjust the price in the event of a change in the market conditions before the vehicle is delivered.

A Ferrari spokesperson confirmed that new tariffs would also be applied to Ferrari cars that were ordered in the past but have not yet been delivered to the U.S.

MOTOFUMI SHITARA, CEO, YAMAHA MOTOR

"Our exports will certainly be affected." We will have to raise prices or reduce costs if these tariffs are extended over time, even for vehicles.

SHIPPING GROUP MERSK

"We expect our customers to be more careful about their stock levels." We're likely going to see some air freight rush orders in the U.S. very soon, before the tariffs go into effect. We will also see an increase in the demand for bonded warehouses as customers want to delay clearing their goods until they have more certainty."

GERRESHEIMER MAKES PACKAGING & MEDICAL EQUIPMENT

Tariffs are primarily affecting our exports to the U.S. from our Mexico-based plant. Injection vials are one example. We will pass on these customs fees to our customers as an additional cost. We will be able, if necessary and if customs duties remain in place for a longer period of time, to move our capacities."

Our production network in the U.S. opens up business opportunities with pharmaceutical companies who are increasingly looking to source and produce locally in the U.S.

MASSIMO BATTAINI is the CEO of CABLE MAKER Prysmian

"On initial reaction, it appears that the announcement has a positive effect on local production. The tariffs are only applied to the finished product, so there is no risk of U.S. producers being undercut by foreign competitors. We are the best placed in the industry to maintain our leadership. With 30 factories spread across the U.S., we have the most factory capacity.

ANDERS VINDEGG HEAD OF MEDIA RELATIONS, ALUMINIUM HYDRO PRODUCER

"We work actively from Norway as well as in Brussels, the EU to inform and to actively work with the organizations and other measures we're part of in order to leverage the importance Norwegian aluminium for Europe."

We're using our network, and our people are on the ground working with the U.S. Administration to understand the effect of the tariffs.

ASSOCIATIONS

International Apparel Federation, representing garment manufacturers in 40 countries

The announcement by the US government of high taxes on trade with the rest is a shock to the global apparel industry. This unnecessarily creates an entirely new, often irrational world that affects billions of dollars in investments and the lives and livelihoods of tens and millions of people who work in our industry worldwide. Someone will pay the price."

CANADIAN STEEL ASSOCATION

To reduce its dependence, the Canadian Steel Industry urgently needs the adoption of border measures to address unfair trade in steel in Canada, and help recapture the Canadian Market for our industry, workers, and communities.

The Spanish Association of Olive Oil Exporters

This 20% is a serious disadvantage for the Spanish olive oil industry, as compared to other countries that produce olive oil but do not belong to the European Union.

"98% (of the olive oil consumed by Americans) is imported, so these tariffs would result in an increased purchase price which will be paid by U.S. consumers." consumers."

KEVIN CREAVEN, CEO, BRITISH AEROSCAPE AND DEFENCE INDUSTRY GROUP, ADS, ON THE AEROSPACE INDUSTRY COMPONENTS

We are not sure if the exemption from all tariffs (on items classified as airworthy by regulators) is still in place and if these tariffs are applicable or not. This could make the situation worse.

COPA-COGECA EU FARMING GROUP

The introduction of additional tariffs could disrupt global supply chains and drive up prices. It would also limit the market access of farmers and agricooperatives from both sides of Atlantic. This will have significant economic implications for the agricultural industry.

"Copa & Cogeca urge EU & US policymakers in the next days to exhaust all diplomatic efforts." Both sides must be constructive in addressing grievances, without jeopardizing trade benefits.

ANTHONY BRUN, HEAD OF FRENCH GROWERS ASSOCIATION (UGVC)

"One might have been frightened by much higher tariffs. However, this risk remains and is associated with a possible conflict over bourbon whisky. Already, we face tariffs from China. Now, there is the U.S. and the consequences are going to be brutal for wine growers.

ETHAN LANE SENIOR V.P. OF GOVERNMENT AFFILIATIONS, NATIONAL CATFARMERS BEEF ASSOCIATION

"President Trump has taken action to remove numerous trade barriers which prevent overseas consumers from enjoying high quality, wholesome American Beef. NCBA will engage with the White House in order to optimize export opportunities and ensure fair treatment of America's beef producers worldwide.

SIGRID de VRIES, DIRECTOR GENERAL, EUROPEAN MOBILE MANUFACTURERS ASSOCIATION

"We urge both leaders to meet immediately to find a resolution to any issues that prevent free and fair trading between historical allies, and to allow the EU-US relations to flourish again."

SWISS BUSINESS GROUP ECONOMISSE

"Another escalation in the trade conflict is to be avoided. Swiss economic diplomacy and the Federal Council are urged to find quick solutions with the U.S. Government at the negotiation table. "From an economic perspective, the U.S. tariffs on Switzerland are not comprehensible - rather the opposite."

DIRK JANDURA HEAD OF GERMANY EXPORTERS ASSOCIATION (BGA)

"We'll have to pass on these tariffs as price increases and this will impact turnover in many instances." It is a blind economic alley that will lead to welfare losses on both sides of Atlantic. Reporting by Bureax; compiled by Greta Rose Fondahn and Linda Pasquini, edited by Sayantani Ghosh and Shounak Dasgupta. Alan Barona, Milla Nissi, and Sayantani Ghosh.

(source: Reuters)