Good morning. Since the customs tariff was seized on the pressure on supply chains, pricing remains at the highest mental of corporate leaders.
“The problem of customs tariffs: the most affected consumer commodities of mutual rates,” is a new analysis by the S&P Global Market Intelligence. The new tariffs of the Trump administration will add 10 percentage points to import duties from all countries except Canada and Mexico. These sectors such as minerals, chemicals, and cars, which will have their own tariff, will exclude. This means that the most affected supply chains will be completed, consumer goods, including clothes, games and smartphones, according to Chris Rogers, head of the S & P Global Market Intelligence. He pointed out that these sectors face additional duties in the range of 27 to 30 percentage points on the basis of a weighted average.
Rogers said that the managers of the supply chain from companies are likely to integrate the new definitions in price strategies and rely on costs in the short term. He said that the re -identification options are limited due to “the breadth of the assignment of duties.”
Corporate leaders were moving in uncertainty in the customs tariff for some time. So it is still a dominant topic on profit calls. I have reviewed with John Potters, Vice President and Great Debutation Analyst in FactSet, for his latest analysis. From December 31 to March 14, the terms of the “tariff” or “customs tariffs” were mentioned on profit calls from 263 from S&P 500 companies, and he said. In general, 487 S&P companies made profit calls during this period.
From March 15 to April 4, 16 of 18 S&P 500 companies that made profits mentioned “tariff” or “tariff”.
While we head to mid -April, when many companies are scheduled to issue profit reports of the first quarter of 2025 and make collective calls, talking about customs tariffs will definitely appear, but may be discussed from a different angle.
In modern profit calls, companies were voted in discussing strategies and “net negative definitions”, according to the global S&P report. However, companies may be careful in issuing short -term ads “avoiding reactions from the Trump administration,” says the report.
“We expect companies to talk about increasing prices for customers and cost negotiations with suppliers as a major strategy during the profit call season,” Rogers said. “Discussions on long -term plans, including manufacturing and sources to the United States can be concealed, given the ongoing uncertainty on the final image of definitions.”
Sherrill Istra
[email protected]
This story was originally shown on Fortune.com
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