“You would not invest in the United States now”: Foreign CEOs find it impossible to plan Trump’s rates

• To CEO today daily: A European Scooter maker tells Peter Vanham why rates won’t make them open a factory in the United States 
• The great story: Trump does not lean on the rates despite global opposition.
• The markets: A brief period of breath.
• Notes of the analyst From JPMORGAN, Wedbush, UBS and Goldman Sachs to Trump, rates and recession.
• More: All the news and chat Fortune.

Good morning. The U.S. Securities Market has recorded its feelings about rates, with all the main rates that occur after days of loss. But how do foreign companies react? The scooter and the manufacturer Micro I am sold more than half a million scooters a year in the United States, but in the past, scooters can be much more difficult to find and will become much more expensive, they told me Oiiver and Merlin Ouboter, the company’s second -generation executives.

Confronting -President Trump Rates up to 54% on any merchandise made in China (When Micro does most of their products), Ouboters offer a game book on how foreign companies are planning to answer. Undoubtedly, they do not sink to move the manufacture to the United States, they told me to prepare to remove some of their products from the North -American market and wait for consumers to pay a higher price for the remaining ones.

“As a company, you would not invest in producing in the United States now,” said Oliver Ouboter. “I don’t even know if the rates will remain for three months. It is impossible to plan -Thus, all these products will be more expensive. There will be less variety.”

Lower -priced products are more likely to disappear from the Micro United States offer, as the margins are the smallest. Its premium whiteboards, on the other hand, will probably be a higher price, as the company plans to convey some of its additional rates to the consumer.

And micro’s Microlino carAn Italian golf cart over steroids never arrives in the United States, although it had previously launched to launch it there. With a curious and minimalist design and only two narrow seats, the completely electric mini car would have always been a long shot in the country of the SUVs. “But with a 25%rate, you overcome you,” said the Swiss entrepreneur.

In this, micro is not alone: ​​all manufacturers of European and Asian vehicles face the same brutal math. “Imagine a scenario in which you have 25% of rates today. And at some point, in the future it is no longer 25%. Then you have a great fluctuation in prices. It’s impossible,” said Ouboter.

Nor is the manufacture of vehicles for all foreign brands, he said. To make the microlin in the United States, the OEM manufacturers that cause their parts should move first. However, the influx of other manufacturers – in all sectors from cars to pharmaceuticals to textiles – would mean that labor costs and prices would be uncontrolled.

“If we look at the unemployment rate, if all these companies start manufacturing in the United States, you need people. Where do you get them? The prices will be even higher, because you have to pay even higher people.

As for the success of the income, Ouboter did not look too worried. He pointed to the remaining growth potential in Asian markets such as South Korea and European markets such as Germany, Switzerland and the United Kingdom, where Micro still obtains most of his revenue. “We will focus on innovations for their oldest populations, making our products more accessible in these markets,” he said. – Peter Vanham

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Contact CEO daily through Diane Brady at Diane.brady@fortune.com

This story originally presented to Fortune.com