(Reuters) -It is a northern American company, the moment “Wait and see” it’s over on the tariffs.
US President Donald Trump imposed 25% imposed goods from Canada and Mexico, along with a 10% tariff on China, in what could be the initial stages of a trade war as a whole that is likely to create new headaches for executives that have been disturbed by higher costs a few years.
Tariffs on the goods imported of three largest American trade partners could install industry from car to a wide consumption of energy. The executives were able to refuse questions about resolving the tariff before the announcement on Saturday, and many wanted to avoid antagonizing Trump’s white house after taking office. That answer is no longer possible.
“All executive directors are confused by these non -strategic tariffs who are focused on our closest allies instead of opponents,” said Jeffrey Sonnenfeld, a professor at the Yale School of Management in New Haven, Conn.
Numerous global companies will report the results this next week, including Amazon, Ford Motor, Mondelez International and Owens-Hillinois. They are likely to face the number of questions about how they plan to alleviate these costs.
Reuters reached for numerous companies, none of which would comment on the tariff record. Several industry associations commented, although some were more critical than others.
The American Union of Steel, the largest industrial Union in North America, criticized Trump’s tariffs in Canada, citing about $ 1.3 trillion in the store between the two countries.
“These tariffs not only harm Canada. They threaten the stability of the industry on both sides of the border,” said Union President David McCall in a statement.
Foreign factory
Car manufacturers such as General Motors and Toyota could transfer production from foreign factories to the United States, while companies like the Global aluminum giant Alcoa proposed to restart shipments to reduce the burden of tariffs.
Many companies accelerated shipments in the fourth quarter ahead of Trump’s return to the office.
Tariffs that take place are more difficult for smaller companies without global operations that need foreign parts. Numerous airlines and auto companies operate near the US-Kanade border, while the US refined in the Middle Western rely largely on the Canadian raw oil.
Collin Shaw, president of the original equipment supplier for original equipment, which represents more than 500 car suppliers, said in a Sunday interview that the tariffs could introduce significant delays to the production process.
“Even if (something) like a transmission is finally put together in the United States, it is a product from all three countries,” Shaw said. “Hiccup in just one of those will not only exclude the main component, such as gearbox or interior, but then you can’t build the rest of the vehicle.”
Tariffs are paid by importing companies, not foreign nations, as Trump often claims wrong. This week admitted that the tariffs would cause short -term disorders as costs are sometimes transferred to consumers.
Trump followed the tariffs as a way of forcing the company to move to the United States. But this is frustrating for companies that transferred production to Canada and Mexico in response to Trump’s Tariff Trump at China in his first term – and now he will be affected even after he “closer” closer to home.
Prices to sign out
“Our US car manufacturers should not have their competitiveness to undergo tariffs that will increase the cost of building vehicles in the United States and Stiimie investments in US workforce,” said Matt Blunt, President of the US Automobile Policy Council, which is represented , General Motors and Stellantis.
Research shows that larger tariffs usually lead to higher prices, but the exact effect is not clear. Experts have told Reuters that companies can absorb some or the entire tax burden.
Tom Madrecki, Vice -President of the Supply Chain resistance at the Consumer Marks Association, said in a statement: “The Consumer Packaging Industry supports a strategic” American first trade policy “that protects American jobs and preserves food, drinks, home and personal care products and households personal care approachable. “
However, he also said that the tariffs could cause higher prices and called Mexico and Canada to work with President Trump.
Shops with large boxes such as Walmart and Target, which fought to be low due to inflation prices, may not be able to withstand the higher costs of the supply chain.
The two companies did not immediately respond to the commentary requests, but the national retail Federation, which represents the largest sellers in the country, said the White House should explore other ways to achieve their goals of politics.
“As long as these universal tariffs are in force, Americans will be forced to pay higher prices for the daily goods of wide consumption,” said David Franch, the NRF Executive Vice President for relations with the Government.
Church & Dwight, which makes up hand and hammer detergent and Trojan condoms, said they would focus on the local improvement of production and productivity to make up for effects.
“These are unstable situations, so we will see how long it takes and what is happening,” CFO Rick Dierker said on Friday, adding that they have the opportunity to “be reactive when we need to be.”
