(Reuters) - U.S. companies have begun to respond to President Donald Trump’s proposed tariffs on Mexican imports with mixed comments on the effects they would have on them and their customers.
The tariffs currently set for 5% will rise every month until they reach 25% on Oct. 1, unless Mexico takes action to curb illegal immigration.
The higher levies are expected to result in an increase in prices of everything from cars to avocados for American consumers.
The following is a list of comments from companies on the proposed tariffs:
Toyota Motor Corp
The company said the proposal to impose tariffs on Mexican-made goods could cost its major suppliers $1 billion.
In an email seen by Reuters, Toyota Motor told its U.S. dealers that the duties could cost its major suppliers between $215 million and $1.07 billion.
General Motors Co
The company’s senior vice president, global purchasing and supply chain, Steve Kiefer, declined to discuss how much tariffs could cost. However, he said, “the single biggest problem we have is the uncertainty with tariffs.”
“Right now, we’re asking all of our suppliers to be calm and not do anything drastic.”
Chipotle Mexican Grill Inc
The U.S.-based Mexican-themed chain estimated a $15 million hit from Trump’s proposed tariffs on Mexican imports, and said it could cover that by raising burrito prices by around 5 cents.
The company also said its margins would be reduced by 20-30 basis points if the tariffs were to take effect.
Chipotle does not disclose how much it imports from Mexico, but according to its last annual filing, a “substantial volume” of its produce is grown in Mexico and other countries.
Campbell Soup Co
The soup maker expects full-year costs to rise between $2 million to $4 million, if the proposed tariffs on imports from Mexico were levied.
The company sources some ingredients as well as packaging items from Mexico for its U.S. business.
Levi Strauss & Co
The jeans maker said the proposed tariffs would have a negligible impact on the company this fiscal year and that it would be able to substantially mitigate the effects of the levies in fiscal 2020 and beyond.
Levi’s sources some of its products from Mexico, but does not disclose how much.
Wright Medical Group
The medical device maker said the proposed tariffs would have an immaterial impact on the company as it does not have any plants in Mexico, and both its customer and supply base in the country are very small.
The U.S. auto parts maker said if the Trump administration levied a 5% tariff on Mexican imports, it would cost the company $17 million per month.
Company executives said Aptiv imports products worth a little over $3 billion per year from Mexico.
Compiled Uday Sampath and Nivedita Balu in Bengaluru; Editing by Shinjini Ganguli and James Emmanuel