They suffer contagion because they suddenly are all going for American sales. But we know they will re-establish their value added chains quickly.
Their current situation is intolerable, they will do what they must. hard assets will change ownership, go under foreign management. Foreign managers opt for the EM companies that add to or create a value chain. A lot of the EM firms are under asset price pressure, cheap pickings for the shrewd investors.
US domestic producers will be under severe price threat for a short period. Global growth drops from near 3.5% to 2.5%. This is not likely to be the crash, that would be Italy, a larger threat to the eurozone.
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