Trade Wars Will Disrupt Supply Chains, Slow Global Growth [Forbes]
Ford Motor Company (F)
Last ford motor company earnings: 4/28 04:09 pm
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Source: Forbes
Trade Wars Will Disrupt Supply Chains, Slow Global Growth FILE: An employee works on the assembly line at the Ford Motor Co. Kentucky Truck Plant in Louisville, Kentucky, U.S., on Friday, Oct. 27, 2017. Photographer: Luke Sharrett/Bloomberg Right now, trade wars are the greatest threat to global growth. And if President Trump implements the threat of tariffs on autos, it could be the tipping point for a global equity selloff. Today’s auto industry has a complex supply chain. A car assembled in the U.S. might have its engine manufactured in Germany, its transmission system from Mexico and its GPS from South Korea. Such sophisticated supply chains have formed through decades of globalization, which is difficult to unwind. Intermediate products dominate trade, with a growing share between international affiliates of the same company. Yet the rift with the EU could see U.S. tariffs of US$63 billion on autos and auto parts. And if NAFTA negotiations also stall, then a further US$160 billio
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