Wabash National Corp., a producer of semi-trailers and truck bodies, plummeted the most since 2010 after saying higher raw-material and labor costs will put third-quarter earnings well below analysts’ estimates.
U.S. tariffs on aluminum and steel are driving up the price for many U.S. manufacturers, and Wabash cited “labor instability” that resulted in “higher levels of overtime and lower productivity.” A tight freight market has also made it hard for the company’s customers to find trucks to pick up Wabash products. https://www.bloomberg.com/news/articles/2018-10-12/truck-trailer-maker-sinks-as-tariffs-labor-costs-pound-earnings
Volvo had planned to export locally made S60s through the Port of Charleston to China, but said that won’t be feasible due to 40 percent tariffs China has imposed on U.S.-made vehicles. “China will have to build up its own plant” to handle S60 production, Anders Gustafsson, Volvo’s head of U.S. operations, told the website. “I need to find a substitute for the volumes” that would have gone to China, he said
Global trade tensions are partly to blame for a significant drop in Upstate-made BMWs exported from the Port of Charleston. Such exports plunged 35 percent in August and hit a five-year low the previous month
South Carolina is among the states hardest hit by the tariffs, according to a report by the U.S. Chamber of Commerce. About $4 billion worth of goods made in the Palmetto State are targeted for tariffs by China, including about $2.5 billion worth of passenger vehicles. https://www.postandcourier.com/business/potential-tariffs-tally-half-a-billion-for-bmw-production-move/article_79ebc70c-d093-11e8-8893-43e69622fe60.html
Hizi ni tariffs yaani taxes sio trade sanctions. Kama ni sanctions ingekuwa story ingine.
There’s a Chinaman in this bloomberg article here below who claims that despite the tariffs he has figured out a way to export his electric jacks to the U.S. and bypass the tariffs.
He insists that despite the tariffs he cant foresee a slowdown in sales because his prices are still very competitive in the U.S. even with the tariffs on.
Which implies that since the Chinese don’t play by the book, they can escape many of the sanctions while USA companies which often tow the line will suffer the full effects head on. If they follow the Chinese tactics, it will mean moving jobs outside the USA. Time will tell.
He is currently enjoying a 10% tax which is lower than the 25% tax because he ships his jacks without motors. But in January next year even non motorized products will be taxed at 25% up from 10%.
He insists that even then he’ll still enjoy a healthy profit margin.
He is a wise entrepreneur, his cost of production must be quite low, however US companies do not have that luxury mainly due to the high cost of labour. Trump is not the type to blink first but let’s see how long this drags out until one side blinks first.