From Coca-Cola to post-it, the trade war is already being felt in consumption

Many companies have already shifted price increases to new prices

NEW YORK.- Coca-Cola and Fanta cans are more expensive, car prices are rising and even
post-it (self-adhesive notes) are more expensive: US companies have begun to pbad on to consumers the costs of the trade war launched by


Donald Trump
.

A large number of companies in the United States were preparing for a price increase after the publication of the second quarter results of the year. They intend to protect their margins against the escalating prices of steel and aluminum, which has increased product manufacturing costs.

"It's obviously disturbing for us, it's annoying for our customers," but it's "necessary," James Quincey, executive director of Coca-Cola, who raised his prices, said in a statement. at the beginning of the month, after the entry into force of new tariffs of 25% and 10% on steel and aluminum imports, imposed by President Trump. 19659006] The rates "are one of the reasons that prompted us in the middle of the year to announce a price increase," defended the executive.

These tariffs, followed by retaliation from China, the European Union, Canada and Mexico, affect the bottling activity (plastic, resin) and transportation.

"In the short term, there will be some impact for consumers," said Deborah Thomas, Hasbro's chief financial officer. Hasbro, who specializes in table games (Scrabble, Trivial Pursuit) is in talks with his suppliers and distributors about a price increase that could occur during the crucial Christmas holiday period.

In March, Wilbur Ross, Secretary of Commerce, had badured that consumers would not perceive the coming into force of the tax on aluminum.

Deficit

The new tariffs affect businesses in two ways. On the one hand, the costs of raw materials and imported materials are increasing. And, on the other hand, they increase the costs for their customers in the export markets.

Customs duties come at a time when US companies are facing a strong dollar that is hampering their exports and falling emerging market currencies. which reduces the benefits in these areas.

Major auto manufacturers in Detroit (General Motors, Ford, Fiat Chrysler) have revised down their forecasts for 2018, citing the new rates, in the worst session of their markets. shares since the bankruptcy of GM and Fiat Chrysler in 2009.

GM has calculated the bill for rising prices for aluminum and steel – which account for more than half of the components of the company. a car – in more than a billion dollars in 2018. "We will recover this deficit by raising prices," said Chuck Stevens, chief financial officer, explaining that it's one of the few ways the builder must remain competitive. "

From the month of August, consumers who want to buy a Chevrolet Silverado or a Sierra GMC should review their budget, because these cars will increase.

US protectionist measures and retaliation of some countries protect very few areas and cause damage in rural areas of the United States.

Aware of the danger of the upcoming midterm elections, the Trump government has just announced an emergency plan of 12 $ 1,000 million to help farmers affected by Chinese retaliation

Whiskey, bourbon producers, maker of Harley-Davidson motorcycles, products hit by punitive taxes from the European Union, have also reported their difficulties.

According to a study by Goldman Sachs, the trade war could reduce the profits of 500 of the largest US companies by 15%.

Approves The work of companies that depend most on imports, such as energy, coal, electricity, information technology and transport, is threatened by significant risks. "We are preparing to change our sources of supply," said Nicholas. Gangestad, CFO of the 3M industrial conglomerate, which manufactures
post-it tapes and other products in more than 60 countries around the world