These popular brands say Trump's tariffs are forcing them to raise prices

29.08.2018 23:30

winnebago RV

President Donald Trump's import taxes are meant to help US manufacturers by making foreign products more expensive, but some companies say the costs are likely to trickle down to American consumers.
Several companies have either already raised their prices or say they plan to as a result of the tariffs.
According to Labor Department estimates, the average cost of washing machines went up by 17% in the past three months.

President Donald Trump's tariffs are leading to higher import costs for US-based companies, and it's American consumers who are likely to bear the burden.

While the White House has pointed to national security issues as justification for the tariffs, there's also a practical economic component to Trump's duties. The tariffs on foreign imports such as washing machines, steel, and aluminum are designed to make foreign goods more expensive and therefore US manufacturers more appealing.

Since these tariffs have been in place, several US companies including Coca-Cola and Winnebago have said they have been forced to raise prices on the consumer's side. Others are threatening to follow suit.

According to the Labor Department, the average cost of washing machines was up 17% in just the past three months, The Wall Street Journal reported.

Here's a list of some of the best-known brands that have spoken out about the new tariffs and either raised prices already or say they plan to:

Coca-Cola

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Coca-Cola said on July 27 it would be raising the price of its sodas in the middle of the year.

"There is some broad-based push on input costs that have kind of come in and affected ours and many other industries as well," CEO James Quincey told The Wall Street Journal.

Quincey cited steel and aluminum tariffs announced by Trump earlier this year as one of the causes of increased costs, but did not specify how high the price increase would be.

Winnebago

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"We've had to go to the market a bit more frequently and a bit more aggressively with some price increases as of late," Michael Happe, CEO of Winnebago Industries, told The Wall Street Journal in July.

Happe did not confirm how high the prices increases were.

The company has also made changes to the design of the RV to trim costs.

Polaris Industries

Facebook/Polaris

Scott Wine, CEO of Polaris, a company that makes motorcycles, quad bikes, and snowmobiles, said in a recent TV news conference after the release of its second-quarter earnings that the company had raised prices on some items impacted by tariffs, such as motorcycles.

"As we and others raise prices, it creates a real risk of inflation to our customers and the economy, which could be more harmful than the tariffs themselves," Wine said, according to the Associated Press.

The company is looking to move production of motorcycles that it sells in Europe from Iowa to Poland to avoid being stung by EU tariffs on US products, The Wall Street Journal reported.

See the rest of the story at Business Insider