ABB(US:ABBNY) 3 6 Ke·2025-04-24 08:43Core Viewpoint - ABB is expanding its production investment in the U.S. in response to Trump's tariff policies, raising questions about the actual effects of U.S. trade protectionism on global supply chains [1][5]. Group 1: ABB's Investment Strategy - ABB plans to increase its local production ratio in the U.S. to over 90% through a combination of organic investment and acquisitions [3]. - Currently, 75%-80% of ABB's sales in the U.S. rely on domestic production, with a total investment of approximately $500 million (about 3.7 billion RMB) over the past three years for factory expansions [3]. - Recent investments include a $40 million (about 290 million RMB) expansion in Senatobia, Mississippi, creating 122 technical jobs and doubling production capacity, and an $80 million (about 580 million RMB) new factory in Selmer, Tennessee, focused on power distribution equipment [3][5]. Group 2: Industry Context and Reactions - Other companies, such as Honda and Novartis, are also increasing their U.S. production to mitigate tariff risks, with Honda planning a 30% increase in U.S. auto production and Novartis investing $23 billion (about 161 billion RMB) [5]. - ABB's CEO emphasized the need to reduce import dependence in the U.S. market, aligning with the Trump administration's goals to boost domestic manufacturing and employment [5]. - The Mississippi Development Authority supports ABB through tax incentive programs, highlighting the state's attractive business environment [5]. Group 3: Market Concerns and Economic Impact - Despite ABB's investments being seen as a short-term success of tariff policies, there are concerns about the long-term sustainability of these strategies [7]. - Analysts express worries that rising costs due to tariffs may squeeze corporate profits, and that mergers and acquisitions could increase financial risks [7]. - The local economy has benefited from ABB's investments, with new jobs contributing to community stability, although actual job creation may fall short of initial promises [7][9].