The new policy of duty PROMBER BY THE PRESIDENT Donald Trump It is already having an impact on the plans of the big companies. During the first quarter season, several executives detailed that they analyze Price increases to transfer the cost of import taxes to consumers.
However, not all firms see it simple: in sectors where competitors supply locally, upload prices could make them lose market. In parallel, some companies already draw strategies to Move production to other countries or states within the United States.
“We have factories in almost all regions of the world, but we don’t want to take hurry measures if this turns out to be temporary,” he said Nicolas HarioimusCEO of L’Oréalaccording to transcripts cited by Alphasense.
Price increases on the road
Several companies confirmed that they will transfer part of the impact to consumers. Procter & Gamble (PG), brand manufacturer like Tide and Charmin, and the French luxury house HermesThey announced imminent increases in their products. According to CNBC, Hermès will apply up to the US market to compensate for new tariffs.
The executive director of Hasbro (Has), Chris Cockswarned that half of his toys come from China and that tariffs could cost him between U $ S60 million yu $ s180 million This year. Although he acknowledged that certain prices, such as products of U $ S9.99 and U $ S19.99They are sensitive to the consumer.
Meanwhile, Michael HsuCEO of Kimberly-Clark (KMB) –Matriz de Huggies, Kleenex and Scott, “warned that raising prices can be risky against competitors that manufacture locally. The company faces an estimated impact of U $ 300 million for the tariffs and will seek to compensate for Supply chain settings.
Changes in commercial production and strategy
Companies like Hyundai They already plan to move production. The Tucson SUVs that are manufactured today in Mexico could occur in Alabamareserving the Mexican plant to supply Canada.
The protective clothing manufacturer Lakeland Industries (Lake) also outlined a strategy to relocate its production of firefighters. For its part, Flexsteel Industries (FLXS) reported that it studies alternative suppliers in other regions, although it expects clearer definitions of Trump’s commercial policy before advancing.
Trump postponed the total implementation of tariffs until July to give margin to negotiations, while trying to close a new agreement with China, a country that in response has imposed tariffs higher than 100% To American products.
First effects on sales
The new tariffs already begin to move the market. Boeing (Ba) warned that the delivery of 50 aircraft To Chinese clients this year due to retaliation measures. The company now seeks to redirect those units to other markets.
In contrast, some firms see opportunities. Whirlpool (WHR) said that, in the long term, tariff policy will improve its competitiveness against Asian rivals. Kaiser aluminum (Kalu) also reported an increase in aluminum demand made in the United States.
The coming months will be key to defining how much of the impact will be supported by companies and how much by consumers.
Source: Ambito
