Multinationals may be most impacted by global trade “headwinds”

Capital Group equity manager Jody Jonsson warns that multinational companies appear to be most impacted by the “current headwinds” affecting global trade.

“Rising tariffs and looming trade wars seem like a scary prospect for multinational companies. They appear to be the ones most impacted by the current headwinds affecting global trade. But the reality is that many multinationals are well-positioned to do so simply because they have navigated turbulent trade waters for years,” says Jody Jonsson.

Capital Group's equity manager says that many multinational companies are adopting a “multi-local” approach to their businesses, by getting closer to the customers they have in the countries where they have operations.

“Multinational companies are finding ways to adapt and succeed, regardless of the environment,” reinforces Jody Jonsson.

Among the examples given by Capital Group's equity manager is the inauguration of the Siemens electrical equipment factory in Texas, which required an investment of 190 million dollars in 2025.

“American companies that are known for manufacturing their products overseas are adopting the same approach,” said Jody Jonsson. “Apple recently announced that it will invest $500 billion in new facilities in the United States over the next four years,” added the equity manager at Capital Group.

Jody Jonsson sees these investments as a way for companies to “get around” US tariffs.

The Capital Group equity manager also said that multinational companies that are globally diversified “have the flexibility, resources and management expertise to compete very effectively” even when conditions are not ideal.