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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.

Here are some reactions from executives of companies, unions and trade associations.

Companies

DANISH SHIPPING GIANT MAERSK

"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 a rise in the demand for bonded warehouses as customers want to delay clearing their goods until they have more certainty.

GERMAN PACKAGING & MEDICAL EQUIPMENT MANUFACTURE GERRESHEIMER

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

"At first glance, 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.

NORWEGIAN 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.

NOBUHIRO TORII, PRESIDENT OF SUNTORY

"We will try to sell locally and produce... that's the key with tariffs."

ASSOCIATIONS OF WORKERS AND ASSOCIATIONS

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

"European automakers have committed to be active in the U.S. and make an important contribution to its economy. They account for about half a million auto-related jobs, will export over 750,000 cars to the U.S. by 2024 and actively invest in local communities in order to foster economic prosperity."

"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's an economic dead end that will result in welfare losses on both sides of Atlantic.

GIOVANNA CEOLINI HEAD OF CONFINDUSTRIA ACCESSORI - MODA, REPRESENTING ITALIAN FOOTWEAR AND LEATHER, FUR, AND TANNERY INDUSTRIES

We are worried that there will be a decline in demand for our products. It will depend on how willing Americans are to pay more.

WOLFGANG NIEDERMARK EXECUTIVE COMMITTEE MEMBER, GERMANY’S MAIN INDUSTRY ASSOCATION BDI

The justification of this protectionist escalation has no rational basis. It is a threat to our export-oriented businesses and threatens prosperity, stability and jobs in the United States and abroad.

The EU should now coordinate its response and strengthen its alliances, with other major trading partners. "A coordinated response is needed to counter the changing flows of international trade."

SCOTT WHITAKER, CEO, ADVAMED

"These broad-based tariffs would be similar to an excise duty." R&D would be the most immediate and direct victim, as it threatens America's leadership in medtech innovation. Tariffs would cost U.S. workers, increase health care costs and hinder future medical progress."

CHRIS VITALE, UAW VETERAN WHO RETIRED FROM STELLANTIS, ATTENDED TRUMP'S TARIFF ANNOUNCEMENT IN PERSON

The president's words were reminiscent of what I had been saying for years. It was amazing to see him use the same words. Reporting by Juby B. Babu from Mexico City; Vallari Srivastava and Neil Kanatt in San Francisco; Abhirup Roy and Caroline Humer, Nick Brown, and Alessandro Parodi, in Gdansk. Editing by Sayantani Ghosh and Shounak Dasgupta.

(source: Reuters)