Trump tariffs force companies to rework supply chains

CHICAGO (Reuters)-
From global manufacturers such as HarleyDavidson Inc (HOG. N)
For small tech startups, companies are scrambling to rework supply chains built for a stable, open trade policy era that is now under threat. As U. S.
President Donald Trump is pushing to subvert the status quo of global trade, the company that was waiting --and-
They began to act to protect their businesses from trade policies. On Monday, U. S.
Motorcycle maker Harley warned that costs would increase due to retaliatory tariffs in the EU and said it would move bicycle production destined for the EU from the US to factories in India, Brazil and Thailand.
Milwaukee, Wisconsin decision
S. -based company, Trump vowed to be great again when he took office, but in Mercedes-
Daimler (Mercedes)DAIGn. DE)
As trade tensions intensified, profit expectations were lowered by 2018.
German rival BMW (BMWG. DE)
He said China is considering \"possible strategic options\" in light of rising Sino-US trade tensions \".
Harry is the latest example of the company finding itself \"in return\" because of the target. for-
Retaliate against Trump\'s attempt to rewrite global trade rules as part of his \"US priority\" agenda.
Steelcase Inc. office furniture producer. SCS. N)
The data released last week was 230.
In the first quarter, as the cost of raw materials rose after Trump imposed tariffs on metal imports, the gross profit margin of its US business fell a little.
Although prices rose earlier this month, the second in four months, Steelcase said profit margins are expected to continue to face pressure in a quarter or two.
\"Over time, manufacturers can no longer think that the direction of trade policy is more free and free trade,\" Boston Consulting Group partner Dustin Burke told Reuters last month.
Analysts at Morgan Stanley estimate that,S.
Tariffs and retaliatory tariffs imposed or under consideration by trading partners will affect 1% of global trade.
But for some companies, the 1% share of the supply chain is much larger.
View graphics on USAS.
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It is unclear how the trade dispute between Washington and China and other partners will be resolved, making many companies still reluctant to take actions that may take several years to pay off.
\"If you tell us what the rules are, we will determine the best way to locate capacity and make investments,\" said Michael LaMarca, chief executive of heating and air.
German manufacturer of air conditioning productsRand Plc (IR. N).
\"What you need is certainty around the rules.
\"Uncertainty is a huge asset for supply chain consultants who are helping customers assess potential alternatives for China and other non-Chinese companiesU. S. suppliers. Chicago-
Bain partner Peter Guarraia covered three continents in just two weeks last month.
After looking for suppliers in India and Thailand, guaraya flew to Atlanta, Mexico, and then to the UK to evaluate the supply chain.
\"We are everywhere,\" he said late last month . \".
\"Many of our customers are asking, \'How do we turn the supply chain from the evil that is necessary to a competitive weapon? \'?
Brett Weaver, partner at KPMG, said: \"Companies usually check the supply chain to make it more competitive, but so far, there are very few trade-risk-specific, other than their main suppliers
Complex decades-
The old supply chain cannot be easily transferred to different countries or facilities.
Some businesses have contracts anywhere six to nine months before delivery, while others have multiple contracts
Sign annual contract with supplier.
For some manufacturers like medical devices, it is impossible to replace suppliers without regulatory approval.
In some cases, the company has no choice but to stand still because there is no alternative to an existing supplier.
With the medical system company of Varian (VAR. N)
Leading to cancer.
Anti-radiation treatment system
Palo Alto, California-
S. -based companies use tungsten in their components.
It imports metal from China, which is the main body of global tungsten production.
The company said there was no commercial production of primary tungsten in the United States.
Hipersense is a small startup selling the Internet.
Earlier this month, the connected home climate control system decided to end its reliance on China and fast to import thermostats
Track plans to make these devices in Pennsylvania.
\"We don\'t want to be affected by these political circumstances,\" chief income officer Bob Fields said in an interview . \".
\"We prefer to control what we are doing.
\"Before these two months, it will take at least 9 months and at least $200,000 in R & D costs. year-
Old start-up companies can start production.
Prior to that, Fields said the company had no choice but to pay an additional 25% tariff on thermostats shipped from China and wanted its customers to accept the increased costs.
The tariff will raise the average retail price of the hipersense system from the previous $2,000 to more than $1,900 per unit, Fields said.
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