‘You wouldn’t invest in the U.S. now’: Foreign CEOs are finding it impossible to plan around Trump’s tariffs

• In today's CEO daily: A European scooter manufacturer explains to Peter Vanham why the prices will not open a factory in the United States 
• The big story: Trump does not back up on prices despite the world opposition.
• Markets: A brief period of respite.
• Analyst notes From JPMorgan, Wedbush, UBS and Goldman Sachs on Trump, prices and recession.
• More: All the news and the cool water-cool of Fortune.

Good morning. The American stock market has recorded its feelings on the prices, all the main indices in shock after days of losses. But how do foreign companies react? The scooter and the manufacturer Microphone Sale more than half a million scooters of kicks a year in the United States, but in the future, scooters can become much more difficult to find and become much more expensive, told me Oioiver and Merlin Ouboter, the second generation leaders of the company.

Faced with President Trump's prices up to 54% on all the goods made in China (where Micro makes the majority of his products), the Ouboters offer a play book on the way foreign companies plan to react. They certainly do not rush to move manufacturing in the United States instead, they told me, they were preparing to withdraw some of their products from the American market and hope that consumers will pay a higher price for others.

“As a business, you would not invest in the production of the United States now,” Oliver Ouboter told me. “I don't even know if the prices will resist for three months. It is a little impossible to plan. So all these products will become more expensive. There will be less variety.”

The cheapest products are the most likely to disappear from the American microphone offer because the margins are the smallest. Its premium kicks, on the other hand, will probably be higher, because the company plans to pass some of its additional direct debits to the consumer.
And microphone Microlino carAn Italian manufacturing golf cart on steroids can never go to the United States, despite the launch before for the launch this summer. With an original and minimalist design and only two narrow seats, the fully electric mini car would have always been in the country of SUVs for a long time. “But with a price of 25%, you deposit yourself,” said the Swiss entrepreneur.

In this, Micro is not alone – all European and Asian car manufacturers are faced with the same brutal mathematics. “Imagine a scenario in which you have 25% of the prices today. And then in the future, it's no longer 25%. Then you have a huge price fluctuation. It is impossible,” said Ouboter.

The moving of cars does not make a solution for all foreign brands either, he said. To make the microlino in the United States, the OEMs which he deepens his parts should move first. And even, the influx of other manufacturers – in all sectors of cars with pharmaceuticals to textiles – would mean that the labor costs and prices would become uncontrollable.

“If you look at the unemployment rate, if all these companies are starting to make in the United States, you need people. Where do you get them?

As for the success of income, Ouboter did not seem too worried. He highlighted the growth potential remaining on Asian markets such as South Korea and European markets such as Germany, Switzerland and the United Kingdom, where Micro still obtains the majority of its income. “We will focus on innovations for their older populations, which makes our products more accessible in these markets,” he said. – Peter Vanham

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This story was initially presented on Fortune.com