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
     
    无码人妻精品一区二区三18禁| 一级电影在线播放无码| 日本按摩高潮a级中文片| 亚洲Av无码专区国产乱码DVD| а√天堂中文官网8| 天码av无码一区二区三区四区| 中文字幕无码乱人伦| 亚洲中文字幕日本无线码| 亚洲不卡无码av中文字幕| 亚洲中文字幕伊人久久无码| 日韩美无码五月天| 中文字幕乱妇无码AV在线| 国产精品亚洲w码日韩中文| 亚洲欧美综合中文| 国产精品无码久久四虎| 亚洲av无码不卡一区二区三区| 亚洲视频无码高清在线| 色综合久久中文综合网| 欧美人妻aⅴ中文字幕| 亚洲日韩VA无码中文字幕| 97无码免费人妻超| 精品无码AV一区二区三区不卡| 亚洲AV无码精品色午夜果冻不卡| 无码H黄肉动漫在线观看网站| 久久有码中文字幕| 国产资源网中文最新版| 最近中文字幕2019高清免费| 精品久久久无码人妻中文字幕豆芽 | 无码精品人妻一区| 极品粉嫩嫩模大尺度无码视频 | 超清无码无卡中文字幕| 无码人妻一区二区三区免费看| 亚洲AV无码AV男人的天堂| 亚洲一区二区三区无码中文字幕| 久久亚洲AV成人无码软件| 日韩精品无码视频一区二区蜜桃| 亚洲日韩在线中文字幕第一页| 中文字幕亚洲一区| 亚洲精品无码专区久久久| 无码一区二区三区在线观看 | 亚洲AV无码日韩AV无码导航 |