How the Trade War Is Hurting Deere and Caterpillar

The transcript discusses the challenges faced by GE, Deere, and Caterpillar due to trade wars, particularly with China. It highlights the impact on industrial sectors, potential resolutions, and the broader economic implications. The discussion also covers job losses, political moves regarding subsidies, and supply chain disruptions.

What is one of the main challenges faced by Deere due to the trade war?

• Higher insurance premiums

• Increased demand for construction equipment

• Reduced grain purchases by China

• Increased competition from Boeing

How has Brazil affected the demand for American grain?

• By increasing its own grain production

• By reducing its grain exports

• By replacing some of the demand lost to China

• By increasing tariffs on American grain

What is a potential consequence of the trade war on American industrials?

• Broader demand weakness globally

• Increased preference for American suppliers

• Increased employment in manufacturing

• Higher demand for American goods in Europe

What political move is discussed in relation to subsidies?

• Providing subsidies to all industrial sectors

• Paying farmers but not other affected sectors

• Increasing subsidies for construction equipment

• Reducing subsidies for all sectors

What is a major concern regarding the supply chain due to the trade war?

• Higher costs of raw materials

• Disruptions due to preference for local Chinese suppliers

• Increased reliance on American suppliers

• Increased efficiency in production