Global EditionASIA 中文雙語Fran?ais
    Business
    Home / Business / China US trade tensions

    Impact of tariffs starting to be felt

    By Zhang Ruinan | China Daily | Updated: 2018-08-02 06:51
    Share
    Share - WeChat
    Caterpillar Inc equipment is on display for sale at a retail site in San Diego, California, March 3, 2017. [Photo/VCG]

    Larger companies in United States forecast possible increase in costs 

    Some US companies are starting to notice the potential toll of tariffs on their costs and earnings, as are some consumers.

    Caterpillar said in its second-quarter earnings report that a 25 percent US tariff on imported steel could cost the company $100 million to $200 million in the second half of the year.

    Caterpillar, based in Peoria, Illinois, however, still raised its earnings per share outlook for 2018 to $11 to $12, up from $10.25 to $11.25.

    "Based on outstanding results in the first half of the year and continued strength in many of our end markets, Caterpillar is again raising its profit outlook for 2018," CEO Jim Umpleby said in a statement.

    According to Reuters, larger US companies are starting to take a tariff hit, forecasting a possible impact on earnings and an increase in costs.

    US automakers General Motors and Ford Motor lowered their full-year earnings forecasts due to tariffs.

    General Electric estimated that new tariffs on its imports from China could raise its costs by $300 million to $400 million overall.

    Tyson Foods Inc, the largest US-based meat producer, cut its full-year earnings forecast, citing uncertainty in trade policies and increased tariffs that have hurt domestic and export prices of meat.

    A 10 percent tariff on all imports from China would lower Goldman Sachs' 2019 S&P 500 earnings per share estimate by 3 percent, chief US equity strategist David Kostin wrote.

    If "tensions spread" and a 10 percent tariff were imposed on all US exports to China, Kostin said the S&P 2019 EPS estimate would be 15 percent lower.

    "Tariffs benefit some domestic industries but pose a risk to S&P 500 earnings through reduced revenues (lower exports) and weaker margins (higher input costs)," Kostin wrote.

    "When the companies' costs are going up, the first thing they do is try to make savings internally by cutting travel and leaving positions vacant," said Marshall Meyer, a professor at the Wharton School at the University of Pennsylvania.

    Brinly-Hardy, a US lawn-care equipment maker based in Indiana, said it has to lay off 75 employees this summer, saying that tariffs on Chinese imports could be the "nail in our coffin".

    "But eventually they have to raise prices for consumers," Meyer added.

    US consumers have started to see higher prices for recreational vehicles, soda, beer and other goods.

    "I cannot enumerate all the industries where tariffs will impact prices," Meyer added. "For example, all products with significant steel and aluminum content are vulnerable."

    US domestic steel and aluminum prices are up 33 percent and 11 percent, respectively, since the beginning of the year.

    Coca-Cola announced last Wednesday that it would raise prices on carbonated drinks. CEO James Quincey said that the action was necessary to respond to higher production costs for cans due to the aluminum tariff.

    "Clearly, it's disruptive for us. It's disruptive for our customers," Quincey said on the company's earnings call last week. "But I think the conversations have been about how this is going to work for each and every customer."

    According to the US Labor Department, consumer prices rose 2.9 percent in June from a year ago-the highest increase in more than six years.

    The producer price index rose 3.4 percent in June from a year earlier, as energy and shipping costs climbed along with metal prices.

    "The current administration has been deliberately avoiding consumer goods and focused on items used by businesses," said Philip Levy, senior fellow on the global economy at The Chicago Council on Global Affairs. "But it still will affect some consumers, because when you raise the prices of the input of the US domestic production process, which is what they ended up doing, that is where you will have a consumer impact."

    Top
    BACK TO THE TOP
    English
    Copyright 1995 - . All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form. Note: Browsers with 1024*768 or higher resolution are suggested for this site.
    License for publishing multimedia online 0108263

    Registration Number: 130349
    FOLLOW US
    CLOSE
     
    中文无码熟妇人妻AV在线| 狠狠精品干练久久久无码中文字幕| 亚洲日本va午夜中文字幕一区| 无码人妻精品一区二区三区66| 无码精品日韩中文字幕| 精品久久久久久无码专区| 亚洲中文无韩国r级电影| 少妇无码太爽了不卡视频在线看| 中文字幕有码无码AV| 中文字幕日韩在线| 中文无码人妻有码人妻中文字幕| 久久久久无码精品国产不卡 | 精品无码国产污污污免费网站| 中文字幕不卡亚洲| 中文字幕亚洲免费无线观看日本| 无码日韩人妻AV一区免费l| 免费A级毛片av无码| 无套内射在线无码播放| 亚洲一区精品无码| 成人无码网WWW在线观看| 日日摸夜夜爽无码毛片精选| 日本一区二区三区不卡视频中文字幕| 无码精品A∨在线观看中文| 中文无码一区二区不卡αv| 无码专区6080yy国产电影| 国产精品无码专区在线观看| av无码免费一区二区三区| 91精品日韩人妻无码久久不卡| 色情无码WWW视频无码区小黄鸭 | 国产V亚洲V天堂无码| 日韩精品无码一区二区三区免费| 亚洲AV无码国产在丝袜线观看| 亚洲av永久无码精品古装片| 亚洲日产无码中文字幕| 一本加勒比HEZYO无码资源网| 亚洲综合无码精品一区二区三区 | 精品无码一区在线观看| 精品无码人妻一区二区三区品| 免费无码毛片一区二区APP| 99久久精品无码一区二区毛片| 无码激情做a爰片毛片AV片|