boat maker, farmer, auto parts ceo feel the pain of a growing trade war under trump
With prices of corn, soybeans and pork falling, profits for an Illinois farmer are rapidly turning into losses.
A manufacturer is paying billions of dollars to dealers in Canada, Europe and Mexico to partially offset the cost of tariffs in these countries, endangering the United StatesS.
Employee bonus this year
A craft brewery spends more on aluminum cans, forcing it to put on hold plans to increase workers.
They describe the plight of an escalating trade war that has begun to cost countless businesses across the country.
Many pay more for imports, overseas sales continue to decline, or both, forcing them to put on hold recruitment and investment plans.
Trump administration officials believe tariffs are necessary to protect the US economy. S.
As foreign producers dumped the metal in the country to the following extent, steel makers suffered lossesmarket prices.
These taxes are also aimed at pushing China and other countries to lower the high tariffs that have long been imposed on the United States. S.
It is possible to open these markets to American companies.
To be sure, the trade war has produced some winners, including US steel makers and washing machine manufacturers, who have benefited from tariffs on foreign competitors exporting to the United States. S.
But their team is dwarfed by the losers.
And casualties of American troops. S.
More and more companies. \"I believe (Trump)
The government has good intentions, \"said Bill Ilkin, CEO of correct Craft in Orlando, Florida, one of the world\'s largest steamboat manufacturers.
But, as a country, \"I feel like we made a hole in the bottom of our own boat.
\"More: Tariffs on TV parts could put the town of South Carolina in poverty: 1st Mustang Shelby GT 500 was discovered, but its history is still full of mystery: if you pass so far the tariffs have not weakened the roar of the United States, start adding that wordingS.
But they have prevented stronger growth.
If President Donald Trump honored the threat of tariffs on hundreds of billions of dollars of imported goods, the pain of major street businesses would grow exponentially.
Trump imposed tariffs on about $50 billion in imports of steel and aluminum, and $34 billion in tariffs on a range of technology and other goods from China.
Another $16 billion tariff on Chinese imports came into effect on Thursday.
China, Canada, Mexico and the European Union responded. for-
Tat tariffs on the United StatesS.
Shipped to their country from motorcycles and blue jeansto whiskey and orange juice.
If these taxes remain the same, it will be only one percentage point less than the United States. S.
Mark Zandi, chief economist at Moody\'s Analytics, said growth and employment fell by 170,000 next year.
China\'s economy is expected to grow steadily this year.
\"It is having an impact, but it is not having enough impact on the broader economy,\" Zandi said . \" He pointed out that the Republican Party\'s massive tax cuts have driven economic growth.
But if Trump continues to honor the $800 billion tariffs he has threatened to impose, mainly against China, other countries will retaliate as expected, which will make the economy grow, he said.
Six percentage points and two other people were employed.
The economy is in recession, 6 million.
Thousands of businesses have already felt the impact.
How some people deal with it.
Brian Duncan, 53, a medium-sized corn, soybean and pig farmer with 4,000 acres of land in Polo, Illinois, is already trying to cut profits.
Due to favorable weather and expectations of rising demand, the global crop glut is the culprit.
Now, retaliatory tariffs in China and Mexico have dampened demand in these countries, with market prices for his products down 16% to 27 percent since April.
If the tariffs remain the same, Duncan expects his sales to drop by $1 next year.
His pig business earned $5 million, his corn revenue was about $400,000, and his soybean revenue was about $100,000.
Duncan has 3,500 acres of corn and 500 acres of soybeans.
He raises 70,000 pigs a year and sells them to big pork producers such as Tyson Foods and Smithfield Foods.
\"The trade war took me from half the country. million-
$ Half profitmillion-
$35 Lossyear, third-
A generation of farmers said.
As a result, he postponed plans to buy new tractors and combine harvesters.
\"You have been trying to expand and grow your business,\" he said . \".
But now, \"it doesn\'t seem like a wise thing.
\"I recognize that there are some trade issues that need to be dealt with,\" he said . \".
\"But I think there is a better way.
. . . . . . Our way is like a bull in a Chinese store.
\"The right craft, the Florida ship maker, was hit by both sides of the trade conflict.
After the current contract with the supplier expires in a few months, it will pay 20% to 30 percent for the aluminum that constitutes the shell of some of its ships, CEO Yeargin said, aluminum parts on board increased by 5% to 15 percent.
The company buys these supplies domestically, but the 10 percent tariff on imported aluminum allows the United States to import aluminum. S.
Manufacturers also want to raise prices because they no longer need to compete with low prices
Pricing of foreign competitors.
Yeargin said the tariffs \"gave them insurance\" to raise prices and even exceed the tariffs of 10 percent.
He said additional taxes would add hundreds of billions of dollars a year to the company\'s costs.
The bigger problem, Yearin says, is that the company\'s $30 percent annual sales account for 0. 5 billion of its exports to 70 countries.
Canada, Mexico and the European Union imposed duties of 10%, 15 percent and 25% on all power vessels from the United States, respectively. S.
Initially, orders from overseas dealers were completely stopped, he said.
Customers \"don\'t want to be the ones who buy ships with 25 percent tariffs,\" Yearin said, especially if the tariffs are temporary.
The company then decided to offer a rebate to offset 20 percent to 50 percent of the tariff.
Yearin says sales aren\'t hit much right now, but \"it\'s going to cost millions of dollars.
\"The right process has suspended plans to expand the plant and hire dozens of workers in the coming months.
\"We have not approved any new growth plans,\" he said . \".
The reduction in sales and profits could affect the annual bonus of Craft\'s 1,300 employees.
A strong economy is a boon for the United States. S.
Sales of Correct have grown by more than 20 percent per year in recent years.
However, yearin is concerned that customers who postpone the purchase of ships may switch to another hobby.
\"Once they go out, they may never go back to boating,\" he said . \".
Even the seemingly insignificant increase will have a huge impact.
Wisconsin Waunakee\'s contractor, Octopi Brewing, produces beer for other brewers and has paid 15 percent for aluminum cans since the tariffs came into effect a few months ago.
Its suppliers have moved the price from 10.
5 cents to 12 cents a can, 3-year-old company.
That doesn\'t sound like much, but for a company that produces millions of cans of beer a year, that number adds up to about $100,000 a year.
\"When you\'re talking about millions of units, you\'re talking about real money,\" says Showaki, 34 . \".
The octopus absorbed the extra cost initially, but now it\'s passing it on to the brewing plant --
Nevertheless, there is still some time before Octopi can recover these additional costs from customers-about $30,000 so far.
This reduces the cash flow of the company.
\"This is the money we could have used to hire employees,\" Showaki said . \" He noted that sales at Octopi grew by 50 per cent per year and that the company plans to increase by two to three workers.
\"It just brakes everything.
It just slows you down.
\"Lucerne International, a car parts supplier based in Auburn Hills, Michigan, has taken a hit from the trade war and is ready to take a bigger hit.
The company earns about $50 million a year in part of eight factories in Asia and then ships them back to the United States. S.
Final production of large car manufacturers.
Part of BMW\'s sales fell by 20% as China raised tariffs on imported cars from the United States. S.
Retaliation for Trump raising tariffs on Chinese goods reached 40%
BMW makes SUVs in Spartanburg, South Carolina, and exports them to 140 countries, including China.
Because of the tax, it has reduced the number of cars planned to be sold in that country.
So Mary buchziger, CEO of the company, said it was ordering fewerpart from Lucerne.
If Trump continues to threaten to impose a 25% tariff on all imported vehicles and auto parts under national security considerations, it will have a greater impact. Long-
Regular contracts with clients prevent Lucerne from delivering higher material costs or tariffs.
Lucerne\'s profit margin is too low to bear the extra cost.
\"I can\'t sell these products for less than the cost of production, and that\'s what happens with tariffs,\" Buchzeiger said . \" Buchzeiger bought 25-year-
Her father\'s wife in 2015
\"We will be out of business in three months.
She said that Lucerne\'s income has been \"grab goods\" for the past three years, and nearly $50 million in revenue is expected to reach $1 billion in nine years.
So the company has considered opening an American company. S.
The plan will create 125 jobs aimed at reducing dependence on imported products in Asia.
But Buchzeiger said the plans were on hold as the company\'s future was pending.