US-China tariffs threaten European capital goods supply chains

Reuters: European capital goods companies are starting to show the strain of Washington’s trade conflicts with China and other countries, as tariffs push up costs for machine parts and raw materials and threaten to worsen supply bottlenecks. Makers of machines that rely on thousands of small parts from around the world – from Swedish lawnmower maker Husqvarna (HUSQb.ST) to wind-turbine manufacturer Siemens Gamesa (SGREN.MC) – are feeling the effects on their supply chains. Carmakers, directly in the firing line with tariffs on cars built in the United States for export to China hiked to 40 percent, have already raised the alarm on profits and price hikes.