Cisco is a technological company that aims at reconstructing the deal between the trade fall out between the United States and China. It aims at doing this by passing higher prices on its customers as said by Chuck Robbins, the CEO of Cisco. The company is optimizing the supply chain and recently held talks with the Trump administration to help the United States understand the effects of the rates on its citizens. The suggested tariffs are mostly on the main networking products as said by Chuck Robbins when asked about the impact of the ongoing trade war. The company is working on other issues surrounding the impending duties. Issues such as optimization of global supply chain and having discussions with President Trump will significantly help the officials get to know what effect the rates will have on the citizens of both countries.
Pricing of goods and services is the main way through which Robbins aims at dealing with the markets. This has happened much over the past such as the memory prices in technology. Companies will just have to balance their budget and adjust to the price in the market. This was said by Robbins at a past meeting on the issue. President Donald Trump reportedly said that he was ready to go by the tariffs for an extra $267 billion on the Chinese goods if he really wanted. This remarks led to a lot of tension between the two economic powerhouses in the world. If these escalations continue, the effects could be widespread due to the fact that many countries depend on these giants financially.
If that was to happen, it would come on top of the planned rates on a $200 billion of Chinese goods on several industries such as technology. Beijing has promised to fight back if the US takes on any new procedures on the trade issue. Hewlett Packard Enterprise, Dell, Juniper Networks together with Cisco have reportedly given a last-minute appeal to the Trump administration to remove some crucial products in the likely new tariffs. This appeal was, however, issued at the closing stages. This four companies in a letter to the office of the United States Trade Representative said that the rates on the networking equipment will ultimately inflate the price of commodities. It would mean that consumer delays and slow investments would take effect as reported by the Financial Times last week. It will by a great magnitude affect both the consumers and the industries.