Executive Briefings

Why Corporate America Hates Trump's Tariffs Proposal

President Donald Trump has proposed tariffs on aluminum and steel that he says will put the country first. But a broad swath of corporate America strongly disagrees, saying the levies will boost prices on everything from cars to beer and force companies to cut jobs.

While the policy would hit the auto and aerospace industries hardest, it would also have ramifications for a wide range of businesses — and products that Americans purchase daily. Beer, soft drinks, candy, canned soup and even pharmaceuticals rely on aluminum for packaging. Electronics, such as Apple Inc.’s iPhone, also use the metals.

That’s led companies such as Anheuser-Busch InBev NV, General Motors Co. and Campbell Soup Co. to weigh in on Trump’s proposal, which would slap tariffs of 25 percent on imported steel and 10 percent on aluminum for “a long period of time.”

Here’s what equities analysts are saying on Trump’s tariffs:

Autos and Aerospace

The auto and aerospace industries will likely be hit hardest by the tariffs because they use so much metal. Toyota Motor Corp. and Hyundai Motor Co. said the administration’s proposal will hike the price of vehicles sold in America.

“Despite the fact that Ford buys the vast majority of its steel and aluminum for U.S. production, this action could result in an increase in domestic commodity prices — harming the competitiveness of American manufacturers,” Christin Baker, a spokeswoman for Ford Motor Co., said in an email.

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While the policy would hit the auto and aerospace industries hardest, it would also have ramifications for a wide range of businesses — and products that Americans purchase daily. Beer, soft drinks, candy, canned soup and even pharmaceuticals rely on aluminum for packaging. Electronics, such as Apple Inc.’s iPhone, also use the metals.

That’s led companies such as Anheuser-Busch InBev NV, General Motors Co. and Campbell Soup Co. to weigh in on Trump’s proposal, which would slap tariffs of 25 percent on imported steel and 10 percent on aluminum for “a long period of time.”

Here’s what equities analysts are saying on Trump’s tariffs:

Autos and Aerospace

The auto and aerospace industries will likely be hit hardest by the tariffs because they use so much metal. Toyota Motor Corp. and Hyundai Motor Co. said the administration’s proposal will hike the price of vehicles sold in America.

“Despite the fact that Ford buys the vast majority of its steel and aluminum for U.S. production, this action could result in an increase in domestic commodity prices — harming the competitiveness of American manufacturers,” Christin Baker, a spokeswoman for Ford Motor Co., said in an email.

Read full article