Accelerating The Inevitable – Six Corporate Approaches to Tackling Tariffs

China 2719 Cons. Discr. - Apparel 402 Cons. Discr. - Autos 1009 Cons. Discr. - Durables 388 Cons. Discr. - Retailing 353 Consumer Staples 666 Health Care 290 Industrials - Capital Goods 504 Info Tech - Comms Equip 179 Info Tech - Tech Hardware 657 Quote Watch 323 Tariffs 1698 U.S. 4835

After 21 months of trade war, evidence from analyses of over 100 companies has lead us to identify six major corporate strategies and firms that exemplify them: 1. Stockpiling, shown by iRobot, which can have the drawback of higher costs and tied up cashflow. 2. Exemption requests, where BorgWarner has been successful, only yields relief in one-quarter of cases. 3. Price rises are the most popular strategy, particularly when focused as Kubota has shown, though can lead to lower demand and loss of market share. 4. Demanding price cuts from consumers is bearing fruit – Chinese exporters ha...

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