DETROIT — From Ford to Walmart to Procter & Gamble, a growing number of iconic American companies are warning that President Trump’s tariffs on U.S. imports are raising their costs and prices.
Jim Hackett, CEO of Ford, the second-largest U.S.-based automaker, said Wednesday that Trump’s taxes on imported steel and aluminum will cost Ford $1 billion through 2019.
Likewise, Walmart, America’s largest retailer, has told the administration that Trump’s latest round of taxes – on $200 billion of Chinese imports – could increase prices for its shoppers. Walmart specifically mentioned items ranging from car seats, cribs and backpacks to hats, pet products and bicycles.
Procter & Gamble, the consumer products giant, has warned of both potential price increases and job losses as a result of the tariffs.
In the meantime, drinking Coca-Cola is costing more because of Trump’s tariffs. Macy’s, too, has warned of likely price increases. So has Gap.
On Wednesday, Federal Reserve Chairman Jerome Powell took on the issue at a news conference after the Fed announced its latest interest rate hike. Asked about the Trump tariffs forcing up prices for America’s consumers, Powell agreed that Fed officials are hearing from businesses about forthcoming higher costs.
“You don’t see it yet,” the chairman said, referring to the data the Fed studies.
But, Powell said, “tariffs might provide a basis for companies to raise prices in a world where they’ve been very reluctant to and unable to raise prices.”
At his own news conference Wednesday in New York, Trump rejected any notion that his tariffs posed an economic risk, echoing assertions by his administration that consumers would barely notice the new taxes.
“It’s had no impact … on our economy,” the president said after meetings with foreign leaders at the United Nations General Assembly.
The Trump administration imposed a 25 percent tariff on imported steel and 10 percent tariff on aluminum from some countries, including China, in March. It added Canada, Mexico and the European Union in June. The administration justified the tariffs by calling foreign steel and aluminum a threat to U.S. national security.
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