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Companies brace for price pressures as Trump tariffs start to bite

Companies began storing materials, reviewing the effects of manufacturing feet and preparing to raise prices, as they entered the trade war, Donald Trump, “an unknown zone” with a comprehensive tariff for Canada, Mexico and China.

The sectors, including manufacturing, retail and food, were among those that highlight the shocks reached by their supply chains after the US President imposed 25 percent on imports from its neighbors in North America and raised a new tariff on China to 20 percent. Canada and China also announced quickly Revenge measures American groups have warned against hurting sales and jobs.

It is expected that car makers, who are already suffering from extended margins and heavy investments in electric cars, are expected to increase by expanding the trade war due to international complexity. Supply chains.

German car supplier Continental said that she will review her production capacity in Mexico and Canada, where her shares decreased by 12 percent in Frankfurt on Tuesday about concerns about tariff impact.

Continental employs more than 23,000 people in Mexico, an important production center for car companies. It announced an investment of $ 90 million to build its twenty -second factory in the country just one year ago.

French auto parts resource for Forvia also warned of the “tremendous” impact on this industry. The company has wide manufacturing operations in Mexico.

GroupWith customers including stellantis, Tesla and China’s BYD, the fees could raise annual costs by 200 million euros-450 million euros. The numbers come from the details of the internal discussions obtained by the financial Times and the company confirmed on Tuesday.

“Placing 25 percent on large flows of purchases to the total industry has a very significant impact,” Olivier Durand, Fourvia Financial Manager, said in an interview.

Bernstein estimated an annual success of $ 40 billion in the American auto sector if trade flows remain unchanged-which will be translated into an additional cost of $ 1,200 per vehicle made by the United States. The company said that more than $ 13 billion of cars cash flows are likely to be eliminated for General Motors, Ford and Malik Chrysler Stelinsus in the fiscal year 2026 if the definitions remain in place.

Boeing shares fell 6.6 percent on Tuesday. The plane maker plants are in the United States, but the supply chain extends throughout North America. Jefferies analyst Sheila Kahyojlu estimated that the company spent one billion dollars annually on its Mexican supply chain, Wenipeg, Canada, the factory manufactures parts of 787.

The United States also warned of retailers of consumer prices.

Great retail chain warned, beware of Profit pressure Partially related to tariffs on Tuesday. CEO Brian Cornell acknowledged that some elements may become more expensive, as fresh fruits and vegetables are prepared from Mexico to escalate quickly. About half of the company’s products are made in the United States.

Rick Gomez, the chief trading official in Target, said her traders should be careful about pricing rather than passing higher costs. For example, he said that target may freeze the price of Christmas jewelry at a price of $ 3, “so perhaps we will take the prices a little on socks to cover what we are in Christmas jewelry.”

China and Mexico are the largest and second largest sources of consumer electronics. “We expect our sellers to pass through a variety of all of the costs of the customs tariffs of retailers, making prices for US consumers very much,” Bari told analysts.

Industry experts warn that the biggest state of uncertainty is the duration of which these measures will work, and if exemptions are made to alleviate their effect.

“This administration believes that customs tariffs are important in itself,” said Tim Braretbell, a partner in the law firm, Elie Ryan and an expert in the International Trade Law.

American stocks jumped from platinum, a raw material in the manufacture of products from cars to jewelry, to the highest levels since 2021, when buyers collected before the definitions, where five times has grown since December.

There were also wide sales in mining shares on Tuesday, as uranium companies-many of which extracted the metal in Canada-overnight. Uranium is a decisive element in the development of nuclear fuel.

The United States’ trade groups also said they are concerned that Canadian stores will transport American lives from their shelves and estimate that customs duties against Mexico and Canada can lead to the loss of more than 31,000 jobs. The souls are among the first category in which the revenge definitions announced by Canada on Tuesday, along with consumer goods such as food, clothes and cosmetics, as well as electronics, these home appliances.

Many of the US agricultural exports target. China will impose a 15 percent tariff on American chicken, wheat, corn, cotton and 10 percent on the delicate corn, soybeans, pork and beef. Canada put fees on imported American pills, meat and dairy products.

Its reports were submitted by Ian Johnston in Paris, Patricia Nelson in Frankfurt, Kanagaki, Camila Hodgson and Madeleine Speed ​​in London, Gregory Meyer and Jay Chazan in New York and Clair Bushi in Chicago

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2025-03-04 21:00:00

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