Bloomberg’s “Tariff Tracker” report contains a list of companies impacted by Trump’s trade war. I added four items to the list, numbers 32-35. Expect the list to grow.
- General Motors: Cut forecast for year on surging prices for steel and aluminum as tariffs stoke demand. Could be forced to cut U.S. jobs if tariffs are applied to imported vehicles and auto parts.
- Hexcel: Aerospace materials supplier expects a tariff impact of $2 million to $3 million on an annual basis related to imports from China.
- Harley-Davidson: Cuts profit margin forecast for year. Earlier had announced plans to move production overseas, amid EU tariff costs of $100 million annually
- Whirlpool: Cites rising cost of raw materials contributing $50 million to $100 million to previous forecast for input-cost increases this year
- Plains All American Pipeline: Company says tariffs will lead to an additional $40 million in the construction of a pipeline in the largest North American oil field.
- Illinois Tool Works: Tariffs seen representing about 10 percent to 15 percent of the higher cost of materials in 2018 for the maker of equipment for restaurants, medical labs and oil rigs
- Lennox International: Maker of air conditioners forecasts $5 million in costs in 2018 from tariffs and is raising prices to offset the expenses
- Lincoln Electric: Maker of welding equipment and supplies is raising prices on so-called consumables via surcharges instead of permanent hikes because it’s not clear how long tariffs will be in place
- Philips: CEO says company will raise prices on products such as hair clippers imported from China if the U.S. imposes tariffs
- Gentex: Maker of rearview mirrors for cars cut its annual gross margin forecast, citing increased raw material costs of as much as $8 million in the second half linked to imports from China.
- Saudi Aramco: Raised prices for butane and propane as Chinese companies are buying more LPG from the Saudi state-run producer and cutting imports from the U.S.
- Toyota: May have to stop importing some models in the U.S., North American chief says.
- General Electric: Sees as much as $400 million a year in impact from current and proposed tariffs, though about half could be offset by credits for exports to China. May adjust supply chain to mitigate effects.
- Stanley Black & Decker: Estimates $35 million impact in 2018 from tariffs already implemented; projects up to $80 million a year in costs from Trump’s proposal for $200 billion additional China tariffs including vacuums, hand tools, power tool accessories. Plans price increases to offset.
- PPG Industries: Maker of coatings for manufacturing, automotive industries says tariffs adding “modest cost” to raw materials, especially for tinplate used for paint cans.
- Sonoco: Maker of packaging materials, including pull tabs for canned food, projects as much as $9 million in tariff costs in second half of the year, plans price hike on some products.
- Nucor: Credits tariff for higher prices and demand, sees more than doubling investments to $1 billion in 2018.
- Alfa: Owner of processed-foods maker Sigma switched to Canadian, European and South American suppliers from the U.S. to avoid tariff.
- Alcoa: Cut profit forecast ranges by $500 million, citing tariffs on aluminum it imports from Canada along with higher energy costs and lower market prices
- Electrolux: Expects $10 million in added second-half costs from parts imported to U.S. and higher steel and aluminum prices.
- CSX: Rail operator sees positive effect on both steel and ore shipments as U.S. steelmakers add production
- Procter & Gamble: Cites ‘meaningful’ impact of tariffs on a handful of products in Canada, which accounts for 3% of global sales
- Kloeckner: Steel trader raises earnings forecast on higher U.S. prices.
- Suntory Holdings: The owner of Jim Beam bourbon whiskey, produced in Kentucky, says it must consider raising prices next year if EU tariffs on U.S. products continue.
- Ryerson: Metal processor’s sales guidance exceeds estimates in part because of higher anticipated demand from inventory dislocations tied to tariffs.
- Osram: Trade tensions will weaken sales of automotive lighting parts
- Volvo Cars: Owner Li Shufu says cars will cost more as trade wars escalate
- Brown-Forman: Raised Jack Daniel’s prices in light of EU tariffs
- Daimler: Cut profit forecast on U.S.-China trade fight
- Tyson Foods: ‘Day-to-day uncertainty’ in delivering products and services
- MillerCoors: Brewer says profit could fall by $40 million depending on how much aluminum prices rise
- Missouri-based Mid Continent Nail corporation, the nation’s largest nail producer may go out of business.
- Catoctin Creek Distillery in Purcellville, Va. which just launched into European markets is hurt by EU’s retaliatory tariffs.
- The Maine Lobster Dealers’ Association says Trump’s policy has the unintended effect of further helping Canada’s lobster market, which doesn’t face the same duties when selling to China.
- The Wisconsin State Cranberry Growers Association says retaliatory tariffs would “hinder our ability to compete in international markets.”
35 and Growing
Items 32-35 are from the New York Times article Lobsters, Small-Batch Whiskey and Trump’s Trade War.
I am sure there are dozens more companies and organizations we missed. The global economy was already slowing and this will not help.
Also consider “Tariffs are the Greatest!” Trump Seeks “One-Time” Aid to Farmers.
This we call “winning”.
And it comes at a time when US housing has stalled, at best. For a housing wrap-up, please see June New Home Sales Decline 5.3 Percent from Huge Revision Lower in May.
Mid-Term Senate Battle
My assessment that a Tariff Backlash Could Cost Republicans the Senate is clearly in play.
Mike “Mish” Shedlock
Winning.
Shall we list the companies that were hurt by NAFTA and WTO Chinese “free trade” or those who have their patents and copyrights ripped off daily? Or would the list be too long and crash the website.
Bastiat works both ways. You list the 35 seen but not the unseen beneficiaries. Conversely when it is creative destruction, you avoid looking at or pooh-pooh the destroyed. When things move to Mexico and China, you cry “but you aren’t seeing the beneficiaries”. Now for Trump’s tariffs, you can only see those hurt.
Walk Outs. Walks Outs are fine. So is firing people who walk out.
“You obviously don’t understand the art of deal.”
LOL you obviously do not understand sound economics.
“So far, so good.”
Excuse me for asking but where the F are the results?
Exports are a relatively small portion of the economy, and while they are around 35% for the Fortune 500, these big corporations deserve to be hammered for their bribes that bought them special deals that reduced/eliminated their competition. At the end of the day, Trump believes his tactics will result in better results for the US than when he took office. So far, so good.
I’m curious, do you support unions, walk-outs and strikes? If so, how do these actions differ from tarrifs?
Regarding your analysis (opinion):
Trump has focused on improving the business conditions for the country as a whole, and based on the poles, his support amongst Republicans is still strong, despite, and possibly because of, the non-stop propaganda and attacks on Trump by the establishment. Even if you think Trump was part of the establishment in the past, he certainly is not now. I would like to know why Dems want to impeach Trump, and if you don’t mind, I would also like to know if you think those reasons are good or bad for the country.
DJ is part of the establishment, and thus have zero motivation in making Trump look good. No matter how insignificant you think the agreement is, it’s better than what the US had before the agreement and before Trump was elected.
Inflation is still a non-factor. In fact, we are headed for deflation, not inflation. The Fed is raising rates to postpone the pension crisis, and they will continue to raise because they think they can stop the coming bubble in stocks, which of course will only make the problem worse. The problem, of course, is the sovereign debt crisis, which is made worse by the rising dollar and interest rates.
Trump indicated he does not want a strong dollar because it will hurt exports, and that he would not get into the Feds business. He should get involved and he should be afraid of the Fed, as their meddling and belief they can eliminate the business cycle has only made problems worse. If he wants a weak dollar, he should declassify the “Russia collusion” docs and expose the fraudsters. Now that I think about it, no matter how bad the US corruption, it pails in comparison to the EU, which along with the euro, are toast.
You obviously don’t understand the art of deal. When Trump gets more than he had before he started, and people think he lost the negotiations, that’s called a win-win.
Missouri-based Mid Continent Nail corporation, the nation’s largest nail producer needs to be STOPPED from going out of business by Trump immediately putting tariffs equal to the steel tariffs on IMPORTED steel products like imported nails.
Mid Continent has problems because too few tariffs so it’s customers switched to imported nails because they became cheaper when steel prices in US rose after steel tariffs but there were NO tariff increases on imported nails so foreign nail manufacturers could undercut Mid Continent on price because steel is cheaper in China and elsewhere outside of USA..
Electrolux hopefully considers starting to make parts in US instead of importing them.
Stanley Black & Decker price increases are a good thing because US made powertools become more competitive and Maybe even production offshoring and China loving Stanley Black & Decker will bring production back to USA.
General Electric adjusting the supply chain is a good thing if it means more of the supply chain will be in USA instead of China.
Toyota stopping importing some models to US is a GOOD THING because more people will be buying US made cars either made in the US by Toyota or other car companies manufacturing in the USA.
Philips raising prices of hair clippers imported from China is a good thing because it will give American made hair clippers a more level playing field on prices.
General Motors has it backwards.
IF there will NOT be tariff increases similar to steel tariffs put on imported vehicles and imported auto parts then GM will be FORCED to cut jobs in USA since people will buy more imported vehicles (because they will be cheaper) and GM will itself use more imported auto parts instead of making them in USA leading to loss of US jobs.
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Trump’s steel tariffs have a big problem:
When putting tariffs on steel there should be similar tariff increases put on steel products otherwise people will buy more imported cars because they will be cheaper and GM itself will use more imported auto parts instead of making them in USA because they will be cheaper.
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What happened to the US nail factory that lost US jobs was that since there were tariffs on steel and steel prices rose many of the steel company’s customers did NOT accept the price increases on nails by the nail company that they tried to push through due to steel price rising and instead decided to use IMPORTED nails because there was NO similar tariff increase on them as steel had so the imported nails were cheaper.
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How to Fix:
increase tariffs on steel products the same amount as there is on steel itself so US nail companies and other US companies will continue producing steel products in USA
Give me amounts in $$$$ no platitudes really. Here are the facts:
None of what you said in your post actually represents results. It is all about “working groups”. You didn’t need tariffs to create working groups. The soybean imports was already happening and Trump knows it (not you since you are not big in DD) (From last month):
link to agweb.com
Autos (your elephant in the room) is of the table. Wasn’t this according to Trump all about auto exports from Europe?
On the LNG, EU has been importing more every year with the exception of Germany that buys piped GAS. So all EU had to do to make “Trump” a winner is:
Now this is my analyses of what happened :
Now the fact that Trump back down (call it wining if that makes you happy) is good and that is why the market rally
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Key soundbites from the press conference:
TRUMP: WE AGREED TO WORK TOGETHER TOWARD ZERO TARIFFS ON INDUSTRIAL GOODS
TRUMP: EU WILL INCREASE PURCHASES OF U.S. SOYBEANS
TRUMP: DEAL MADE TO STRENGTHEN STRATEGIC ENERGY COOPERATION
TRUMP: DEAL FOR CLOSE DIALOGUE ON REDUCING TRADE BUREAUCRACY
TRUMP SAYS U.S., EU TO WORK TOGETHER TO `REFORM’ THE WTO
TRUMP: WE WON’T GO AGAINST SPIRIT OF DEAL WHILE TALKS ONGOING
TRUMP: WE’LL RESOLVE STEEL, ALUMINUM TARIFF ISSUES
Negative spin on positive news starting in 3, 2, 1……. If Trump walked on water Carlos would say “See there you are, Trump can’t swim!”
Even funnier is that you have no facts to rebut my argument. That you are incapable in recognizing propaganda is amazing. BTW no tariffs have been lowered really on the EU side and the US is eliminating the aluminum and steel tariffs. The rest is “create a working group” and more promises.
Too funny – Carlos just did exactly what I predicted.
It is not a win at all. It is actually pathetic. 1) Soybeans imports is a minuscule (see my previous post) . 2) LNG? Come on the EU is a net importer of LNG so they shift some from one supplier to another. 3) “some industrial” tariffs. The devil is in the details but I’ll be surprise if it is of any EU significance. What this announcement does, however, is help Trump save face. Really wasn’t the goal all about auto? LoL
“TRUMP SECURES CONCESSIONS FROM EU TO AVOID TRADE WAR; EU AGREES TO IMPORT MORE SOYBEANS, LOWER INDUSTRIAL TARIFFS, WORK MORE ON LNG EXPORTS – CNBC CITING DOW JONES” and yet somehow the TDS infected Trump haters will put a negative spin on Trump’s latest WIN for America.
You may want to remove Nucor as complainer:
“Nucor: Credits tariff for higher prices and demand, sees more than doubling investments to $1 billion in 2018.”
BTW Trump got EU to buy more Soybean to avert a trade war: Here is the “impact”:
He will declare victory and its supporters will believe him. In my opinion the EU is letting him look good and will keep things as they are…
To paraphrase Reagan, Trump is a voracious appetite at one end and zero responsibility at the other.