How Trump's Trade War Impacts 12 Bottom Lines

As the U.S-China trade tariffs take effect, companies are dealing with the fallout. Twelve executives weigh in on how tariffs are hurting them now and what the trade war could mean for their businesses in the future.

Tariffs have taken over earnings calls this quarter. More than one-third of all S&P 500 companies reporting financial results have discussed the fallout from President Donald Trump's trade war, according to a FactSet search.

Smaller companies are also feeling the pinch.

"Prices are probably going to be going up from our supplier by about 5 percent," said Brad Cooper, Steam Bell Beer Works founder, on CNBC in late September. "And that equates to probably about a couple pennies per can, but when we're ordering a truckload of about 200,000 cans, that counts as several thousand dollars to the shipment."

"That's an expense that we really can't pass on anywhere," he added. "We have to eat the entire cost."

As of Sept. 24, the U.S. has imposed a total of $250 billion of tariffs on China goods and China has retaliated with a total of $110 billion. Here are 12 executives on how tariffs have been hurting their companies since they went into effect in June.

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How Trump's Trade War Impacts 12 Bottom Lines

[georgekraft]

So giant, multinational corporations will be ok, but small and medium American businesses and farmers will be wiped out. Corps will buy them up cheaply and habe even more power!

[midcentb]

I thought the idea was to rebuild American manufacturing. Is it happening now?

[MrTomtomtest]

US going into a trade war alone is what is beyond stupid here. The EU has the same problems with China, and it has an equivalent market to the US... But no, Trump had to hit left & right instead of choosing his battles.

[lemonarry]

What all of this achieves is this: (1) small and mid-sized companies get wiped out because they don't have the capacity and economies of scale to absorb the additional cost coming from the tariffs; (2) big companies survive by eating up the cost and maintaining competitiveness; (3) large trusts and corps buy up these surviving companies to become even bigger; (4) the newly bought/merged mega companies, realizing the lack of specialized talent and high cost of labor in the US, pursue even more offshoring by relocating their manufacture centers to the biggest consumer market (hint: China), biggest pool of labor (hint: China), and the most efficient and complete supply chain network (hint: China); (5) American consumers foot the bill of trade war by paying more for everything in daily life while wage stagnates in the coming years; (6) yet even more hollowing-out of the American economy: more financialization, less manufacture & industry; (7) it follows that the 1% gets richer and richer and the 99% suffer more and more....See where this goes?

[MrJchang]

Don't blame China. Why? China didn't force us to buy anything. Use Apple cell phones as an example. Apple phone is expensive and Apple is making a killing profits. Why don't you buy some other cheaper phones? Because "I WANT IT". Whose fault is that? Buyers!! It is not sellers fault!

[tzu]

So funny that the majority of people only see the final number and say "we are winning!!"

[zbLoodlust]

This could be crazy enough to work long term but on the other side of the token it could to a humongous lost of wealth in equities

[kelvinmarb]

Not agree or disagree yet... But it looks like company's biggest scared is to pay American workers... They are saving tons by paying cheap workers in other countries... But I'm not agree or disagree with this yet..

[didierlemoine]

strange because american consumers will pay all these new taxes !

[Kojtxiv]

And you wonder how the genius went bankrupt 6 times. Well 7 time including the world now

[lintang]

I am a Chinese, I fully agree Trump's trade policy on Chinese goods.Personally, I hope that he should impose a 100% tariff on all Chinese goods, In this way can the Chinese people work more harder and harder.

[jimwong]

China always pursue win-win cooperation. But USA wants lose-lose!
History will remember: Trump stated recession (peaked in various areas--> then going down) in 2018!
Yes, he may make records (stock, employment and/unemployment rate, deficit, growth) in USA, but too short-sighted!
Sustainable? may be very difficult!

[爱旅行的路人甲]

Financial crisis regarding to a huge domestic debt. Poor Americans.

[andredingstertsao]

After all these years, the US foreign policy is still pretty much similar to the Cold War era. It’s time to change the mentality.

[thedefergynetwork]

US economy growth
2010: 4.9%
2011: 5.1%
2012: 4.3%
2013: 3.6%
2014: 3.1%
2015: 2.9%
2016: 2.8%
2017: 2.2%
2018: 1.8%
2019 estimation: 1.2%
Yeah trump, really good.
China economy growth:
2010: 3.1%
2011: 3.0%
2012: 3.2%
2013: 4.8%
2014: 4.9%
2015: 5.6%
2016: 6.5%
2017: 7.2%
2018: 8.6%
2019 estimation: 8.1%

[dvpavilion]

The bottom line to me is the old adage those who living in glass houses should never throw stones.

[silversurfergw]

Wait until trump's trillion dollar tax break on the market start wearing off. Plus many will start requesting tariff exempeitions or financial compensation, like only the farmers got so far.

[MegzeeR]

The average American's bottom lines were passed years ago. We haven't seen hide nor hair of one for several tax seasons now. So if we either can't get $1000 phones from China now that we can't afford anyway or we'll have to build those $1000 phones ourselves if we want them bad enough? gosh, where's the down side to this problem?

[soychivaspues]

The positive I see is we need to buy less plastic toys and learn to buy things with value.

[chrisolga]

21 trillion dollar US debt.. The UNFUNDED debt over 100 trillion dollars.. the house market down since March. If rates go up all those ARM mortgage will default. 2008 all over again but worst since we added 12 trillion dollars to our public debt...