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Johan Gott, principal in A.T. Kearney’s equity/mergers & acquisitions practice, and who also heads up its Trade Wargaming initiative, has warned US firms will need to carefully scenario-plan how other countries (particularly China) will respond to president Trump’s plans to protect American industry. Writing for WWD, Gott said: “The most extreme Chinese trade policy proposal involves imposing a 45% tariff across the board. This would profoundly impact retailers, specifically in the apparel and electronics categories.” He added: “Retailers would have to either absorb massive increases, killing their margins in the process, or pass those increases on to consumers. China would retaliate, likely by imposing counter-tariffs on American exports.” He claimed: “What unites businesses is the need to understand their risk exposure to trade disruption and an imperative to develop plans to address those risks.”

johan gott

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Peter Crush for Consultor.news

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