International companies are looking for a cover of American customs duties

The customs duties announced by US President Donald Trump have been confused since he entered the White House World Trade, and international companies are placed in front of two options that have no third, and they pushed customs high on their exports to the American market or transferring their production lines to the United States. In this regard, Novo Nordsek, which manufactures Osmbeck, plans to produce more medicines for the American market in the United States; Boeing risks the stalling supply chain and the high costs of aircraft that may not be able to tolerate; Shin Group Ltd., the Chinese electronic retail company, offers incentives for its senior clothing suppliers, to create a new production capacity in Vietnam, according to Thursday’s report at Bloomberg.

According to the report, companies all over the world are looking for protection from the torrent of the frantic customs recognition imposed by President Donald Trump, and are preparing for the worst even with the increasing decline and exemptions that drive them to search for clarifications.

In the corridors of companies, executive officials count the potential cost of customs recognition, and their impact on sales, profits and market shares. Many companies are “customs recognition teams” in an effort to alleviate the weight of these procedures.

In his first weeks in his position, Trump imposed customs duties on goods imported from Canada, Mexico and China with a value of approximately 1.4 trillion dollars, or more than three times the value of the Chinese goods that these fees were imposed during his first term, which amounted to 380 billion dollars, according to the estimates of the American Tax Corporation. Trump then postponed these threats to Canada and Mexico and reduced them later. However, his efforts to restructure the American economy shook financial markets. It also left the companies, starting with the Steltensis and Volkswagen automobile companies, to the Sandws GPG, Eli Lily and Partners, and the retail stores, Wall Mart, Targt and Timo, are struggling to determine the impact of these procedures with their commercial operations and reach solutions, according to “Bloomberg”.

This confusion is partially from the close intertwining that global trade has witnessed over the past few decades, which makes the prediction of the results of these procedures difficult, according to Fluran Minigo, CEO of Michelin Tire Industry.

“In a globalized world, the mechanisms are very complicated. If it begins to impose customs duties, it becomes very difficult to understand the consequences,” Menigo said in an interview, noting that for the collected car in the United States, its parts can cross the borders 53 times, making customs duties a logistical nightmare.

While companies are still studying their changing policies data, some general trends are highlighted. Many of them, such as European auto parts, Continental AG, Chefler AG, and Valio SE, say they have no choice but to download consumers high costs.

“For us, it is clear, we cannot withstand additional customs duties, and we inform our customers with that.” The German company owns 20 factories in Mexico, and it has achieved five sales of its group in the United States last year, according to Bloomberg.