October 25, 2018 4:39 pm
Updated: October 25, 2018 8:16 pm

Trump tariff backlash grows in U.S. as major companies take financial hit

Global News explains how tariffs work and why it will impact Canadian consumers


Earnings growth at U.S. corporations is being crimped by an escalating trade war between the world’s two largest economies, with Caterpillar, Harley-Davidson and Honeywell among a few this week to flag mounting costs from the spat.

READ MORE: Ford CEO says steel and aluminum tariffs are costing company $1 billion

Beijing and Washington have slapped tit-for-tat tariffs on each other’s goods in recent months, sparked by U.S. President Donald Trump‘s demands for sweeping changes to China’s intellectual property, industrial subsidy and trade policies.

WATCH: U.S. and China exchange new blows in trade war

Canada, Mexico and the European Union have also retaliated with levies after the United States imposed tariffs on aluminum and steel imports in June.

The following is a list of companies that blamed tariffs for escalating costs:

Caterpillar Inc said Trump’s steel import tariffs, along with higher freight charges, cost it about $40 million in its most recent quarter.

3M Co said it had a $100 million headwind from tariffs, and that its pricing would more than offset that and raw material price increases into 2019.

WATCH: Tariffs not affecting only steel, aluminum manufacturers

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Honeywell International Inc said costs related to trade tariffs could put pressure on margins in 2019.

United Technologies Corp said it expects tariff-related expenses to rise about $200 million in 2019, twice its prior estimate.

Harley-Davidson Inc said it could see up to $48 million in costs from tariffs in 2018.

READ MORE: Trump encourages Harley-Davidson boycott if company moves production overseas: Twitter

Winnebago Industries Inc said it took an “eight-figure” gross hit in full-year 2018, due to costs related to tariffs and is factoring in another eight-figure cost related to tariffs in 2019.

Whirlpool Corp said it expects $300 million in costs related to tariffs in 2019 and anticipates price hikes to offset higher expenses.

— Compiled by Aishwarya Venugopal in Bengaluru; Editing by Bernard Orr

© 2018 Thomson Reuters

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