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Factbox-US executives weigh risks from proposed Trump tariffs

investing.com 20/11/2024 - 17:45 PM

(Reuters) – Top executives at many U.S. companies are preparing for the impact from President-elect Donald Trump fulfilling his campaign promise of raising tariffs, a move that could disrupt supply chains and worsen inflationary pressures.

Here is what major companies and C-suite executives have said on tariffs:

Company Commentary

Tesla (NASDAQ:TSLA) July 23 "… It doesn't make sense to invest a

lot in Mexico if (heavy tariffs are

imposed on vehicles produced in the

country)," said CEO Elon Musk.

Dollar Sept. 4 "… We have long-standing contingency

Tree plans to diversify our supply chain in

a timely and cost-effective manner. We

also have the flexibility to adjust

product specs and price points to

address any changes in the market,"

said Chief Operating Officer Mike

Creedon, who has now become the

interim CEO.

KKR Oct. 24 "We spend most of our time here

focusing on things that we can

control. That's (tariffs) not one of

them," said CFO Robert Lewin.

Zebra Oct. 29 "The team is actively working on

Technolo mitigation plans for some of the new

gies tariffs that are coming into place.

And we continue to actively work with

our supply chain partners," said CFO

Nathan Winters.

Elf Nov. 6 "We certainly have run a number of

beauty scenarios for potential tariffs. It's

still too early to tell what level

those may come in, but we have a

playbook and we have a number of

levers at our disposal," said CFO

Mandy Fields.

Axon Nov. 7 "We've certainly lived in an

environment of tariffs before. And so

our philosophy is generally to be

pretty flexible," said CFO Brittany

Bagley.

IFF Nov. 6 "Those tariffs could actually

intuitively be advantageous to our

overall business broadly," said Chief

Financial and Business Transformation

Officer Glenn Richter.

Under Nov. 7 "It will be interesting to see how

Armour things develop with whether we still

have a split Congress or not," said

CFO David Bergman.

Steven Nov. 7 "We have been planning for a potential

Madden scenario in which we would have to

move goods out of China more quickly.

We've worked hard over a multi-year

period to develop our factory base and

our sourcing capability in alternative

countries like Cambodia, Vietnam,

Mexico, Brazil, et cetera," said CEO

Edward Rosenfeld.

"You should expect to see the

percentage of goods that we source

from China to begin to come down more

rapidly going forward."

Tapestry (NYSE:TPR) Nov. 7 "Tariff regime is changing over time.

So, we're pretty well-versed in

managing through this," said CFO Scott

Roe.

Home Nov. 12 "… Whatever happens in tariffs will

Depot be an industry-wide impact, it won't

discriminate against different

retailers and distributors who are

importing goods. The type of product

as an industry is generally sourced

from the named countries," said CEO

Edward Decker.

"There has been some diversification

of those sources, but clearly a bit of

concentration in Southeast Asia and

China in particular. We source well

more than half of our goods

domestically and in North America, but

there certainly will be an impact."

Walmart (NYSE:WMT) Nov. 19 "We're concerned that significantly

increased tariffs could lead to

increased costs for our customers at a

time when they are still feeling the

remnants of inflation," a Walmart

spokesperson said.

"We never want to raise prices … so

we will work with government officials

and our suppliers to minimize the

impact on our customers."

Lowe's (NYSE:LOW) Nov. 19 "Roughly 40% of our cost of goods sold

are sourced outside of the U.S., and

that includes both direct imports and

national brands through our vendor

partners," said CFO Brandon Sink.

"And as we look at the potential

impacts (of tariffs), it certainly

would add to product costs."

Williams Nov. 20 "We significantly reduced our China

-Sonoma source goods from 50% to 25% over the

last few years," said CFO Jeff Howie.

"We are prepared to reduce our

exposure to China further if tariffs

increase … So we're currently

evaluating quantifying the impact from

additional tariffs."

Source: Earnings calls




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