“You will not invest in the United States now”: Foreign executives find it impossible to plan on the Trump tariff

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Good morning. The US Securities Market recorded its feelings about definitions, with all the main indicators that reel after days of losses. But how do foreign companies interact? Scooter and car maker Repeat Oiiver and Merlin Ouboter told me that steam bicycles may sell more than half a million kicks per year, but to move forward, steam bikes may become more difficult to find them, and become much more expensive.

Confronting President Trump A tariff of up to 54 % on any commodities made in China (Where Micro makes the majority of its products), Ouboters offers a book on how foreign companies plan to respond. They are certainly not scrambling to transfer manufacturing to the United States instead, as they told me, they are preparing to withdraw some of their products from the United States market, and hoped that consumers will pay a higher price for survival.

“As a company, you will not invest in production in the United States now,” Oliver Opter told me. “I don’t even know if the definitions will stand up for three months. It is impossible to plan. So all of these products will become more expensive. There will be less diversity.”

The less -price products are likely to disappear from Micro’s US offers, because margins are smaller. On the other hand, its distinctive panels are likely to be higher, as the company plans to pass some additional fees to the consumer.

And micro’s Microlo carThe Italian golf vehicle may not reach the doping of the United States at all, although it has already been set there this summer. Through the strange design, the Apopelin and only two narrow seats, the entire small electric car was always a long snapshot in the country of SUV. “But with a 25 % tariff, you are superior to yourself,” said the Swiss businessman.

A picture of the Ouboter family, which runs Micro Car and Scotter. Credit: Micro.
The Ouboter family runs Micro Car and Scotter. Credit: Micro.

In this, Micro is not alone – all European and Asian car makers face the same brutal mathematics. “Let’s imagine a scenario you have 25 % of the customs tariff today. Then at some point in the future it is no longer 25 %. Then you have great fluctuations to the prices. It is impossible,” said Opter.

He said that moving all foreign brand manufacturing cars. To make Microolino in the United States, the original equipment manufacturers it displays from its parts will need to move first. However, the flow of other manufacturers – in every sector of cars to medicines to the fabric – means that the costs of employment and prices will be out of control.

“If you look at the unemployment rate, if all these companies start manufacturing in the United States, you need people. Where do you get them? The prices will rise, because you will need to pay higher people. There will be an enormous enlargement on all goods,” Obter said.

As for hitting to revenue, Ouboter does not seem very concerned. He pointed to the remaining potential of growth in Asian markets such as South Korea and European markets such as Germany, Switzerland and the United Kingdom, where Micro still gets most of its revenues. “We will focus on innovations for its oldest population, which makes our products easier in these markets,” he said. – Peter Vanham

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This story was originally shown on Fortune.com



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