September 21, 2018 / 8:22 PM / in a month

Factbox - U.S. companies react on impact of Trump trade tariffs

(Reuters) - China and the United States plunged deeper into a trade war on Tuesday after Beijing added $60 billion (£45.88 billion) of U.S. products to its tariff list, retaliating to U.S. President Donald Trump’s planned levies on $200 billion worth of Chinese goods.

FILE PHOTO: Flags of U.S. and China are placed for a meeting at the Ministry of Agriculture in Beijing, China, June 30, 2017. REUTERS/Jason Lee/File Photo

The tit-for-tat measures are the latest escalation in an increasingly protracted trade dispute between the world’s two largest economies.

The U.S. administration will begin to levy new tariffs of 10 percent on about $200 billion of Chinese products on Sept. 24, with the tariffs to go up to 25 percent by the end of 2018.

The following are comments made by U.S. companies after the Trump administration said on July 10 reut.rs/2m6Yu0r that it would slap tariffs on $200 billion of Chinese imports.

For a factbox on comments by U.S. companies on tariffs, click here reut.rs/2N2pn5x.

** Walmart Inc (WMT.N) warned that it may raise prices of products if the Trump administration imposes a tariff on Chinese imports. The company said the tariff would impact prices of everything from food products to beverages and personal care items.

** Target Corp (TGT.N) said it was “deeply troubled” and strongly opposed any consideration to add tariffs on basic imported consumer goods. The company also said the administration’s tariff policies are already forcing major vendors across product categories to raise prices.

** Chipmaker Micron Technology Inc (MU.O) said U.S. tariffs on Chinese goods would weigh on its financial results for as much as a year.

** Hewlett Packard Enterprise Co (HPE.N) said it was disappointed with the latest outcome on the tariffs. The company said it relies on complex global supply chains and is bound to face various challenges arising from these tariffs.

** Fitness tracker maker Fitbit (FIT.N) said it appreciated the administration’s time and effort to listen to industry and consumer concerns, after the United States spared the company’s fitness trackers from the latest round of tariffs on Chinese goods.

** Apple Inc (AAPL.O), whose Watch and other consumer gadgets were left out of the latest tariff list, had previously expressed concerns over tariffs, saying the U.S. will be hardest hit, and that will result in lower U.S. growth and competitiveness and higher prices for U.S. consumers

** Home Depot Inc (HD.N) said it would continue working to offset impact on its customers.

** Dell Technologies (DVMT.N) said the proposed tariffs will increase costs of vital parts and components for its U.S. services and manufacturing operations.

Dell added that the tariffs on desktops/servers, computer parts, network switches could result in “serious damage” to the company and its employees.

** Intel Corp (INTC.O) said proposed tariffs would negatively affect U.S. businesses and “stifle advancements” in telecom infrastructure, including next generation technologies like 5G.

The company said the tariffs will raise costs for U.S.-based technology companies that manufacture ICT products such as desktop computers, laptops and servers.

** Agilent Technologies (A.N) said the increased duties would financially impede its U.S. operations and its end customers in the U.S. and abroad. It added that substantial tariff increases will limit its ability to reinvest in U.S. operations, affecting employees engaged in R&D, design, other support operations.

Agilent also said it does not believe the goods it imports are specifically covered by the “Made in China 2025” industrial policy.

** Office Depot (ODP.O) said the tariff proposal, which covers non-household seating and furniture it sells, would lead to immense supply chain disruptions and a likely loss of jobs. Office Depot also said the tariffs would impact small- and medium-sized U.S. companies.

** Newell Brands’ (NWL.N) units, including Goody Products and Rubbermaid Commercial Products, said tariffs on items ranging from elastic hair bands to art supplies would hurt American consumers since the tariff prices will be paid by the company and consumers.

They also said consumer goods targeted under tariffs do not come under the scope of “Made in China 2025” programme.

** Mattel Inc (MAT.O) said the proposed tariff on products such as high chairs and bath seats will result in higher prices as China supplies vast majority of these products with no alternative readily available.

Mattel also said additional tariffs could lead to job losses as the toymaking industry is already suffering from Babies ‘R’ Us/Toys ‘R’ Us closures.

** Whirlpool Corp (WHR.N) said proposed tariffs on components from China would increase costs and create supply chain problem for U.S. manufacturers, putting them at a competitive disadvantage.

The company said the administration should remove “critical components” such as parts of refrigerators and mixers from the proposed list and add finished products such as dishwashers to mitigate negative impact on U.S. manufacturing.

** Carrier Transicold, a unit of Carrier Corp/United Technologies Corp (UTX.N), said it was concerned the proposed 10 percent additional duty on various industrial components will reduce its global competitiveness and undercut its U.S. operations.

Carrier asked USTR to exclude items including parts for refrigerators, freezers and other refrigerating or freezing equipment from the proposed tariffs.

Source: U.S. government website (bit.ly/2wNSe2G), company statements

Compiled by Arjun Panchadar and Arunima Banerjee in Bengaluru; editing by Patrick Graham and Anil D'Silva

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