Impact of U.S.-China trade tariffs on U.S. companies (Aug 1, 2018)
U.S. companies are putting in place measures to cushion the impact of escalating trade tensions between the United States and China.
The world’s two largest economies have already imposed tariffs on $34 billion worth of each other’s imports.
In his latest threat to the Asian nation, U.S. President Donald Trump has said he was ready to impose tariffs on all $500 billion worth of Chinese imports.
Following is a list of recent comments made by U.S. companies on the tensions:
** General Electric Co (GE.N) estimated that new tariffs on its imports from China could raise its costs by $300 million to $400 million overall, before steps to lessen the impact.
** U.S. industrial conglomerate Honeywell International Inc (HON.N) said on Friday it will increase the use of supply chain sources from non-China countries to counter growing costs related to a tariff war between the world’s two largest economies.
** Home furnishings chain At Home Group Inc (HOME.N) said it would make adjustments to its supply chain to mitigate the impact of the proposed tariffs on goods imported from China.
** U.S. motorcycle maker Harley-Davidson Inc (HOG.N) said it expects incremental costs of about $15 million to $20 million for the remainder of the year from the steel and aluminum tariffs imposed by Trump. It also says it will take further hits from retaliatory moves from the European Union.
** Diversified industrial manufacturer 3M Co (MMM.N) said it expects an impact of about $10 million or $0.01 a share on an annualized basis from the tariffs passed so far. The company also said it was prepared to make changes to supply, sourcing and pricing in response to any further tariffs.
** Otis elevator maker United Technologies Corp (UTX.N) said based on the tariffs which have been enacted so far it expects to see $0.05 per share impact in 2018. The company expects to see a much bigger impact in 2019.
** Upscale home furnishing chain RH (RH.N) expects to reduce significantly the amount of goods sourced from China in its 2019 fiscal year to mitigate the impact of proposed new tariffs by the United States.
** Gentex Corp (GNTX.O), which makes aircraft windows and rear-view mirrors, said it expected cost increases of between $5 million and $8 million for the second half of 2018 related to its planned purchases of raw materials from China.
** Toymaker Hasbro Inc (HAS.O) said it was moving more production out of China as a result of the tariffs, adding 30 percent of its manufacturing was now done elsewhere.
** Danaher Corp (DHR.N), which develops technology for the dental, life sciences, diagnostics and environmental industries, said it expected an earnings impact of 1 cent per quarter, and that it would look to modify manufacturing locations.