CEOs buckle in for a bumpy ride as US-China trade war gains traction
As the two largest economies add more tariffs, corporations are starting to see expenses rise, and executives say it’s hard to make any plans
Executives at US multinational corporations have started taking measures to counter the impact of tariffs in the US-China trade war, but they must face a hard truth – the acceleration of the dispute is introducing an unprecedented uncertainty to their businesses.
In discussing their business outlooks recently, executives from the agricultural, food and manufacturing sectors said they were acting cautiously and taking one step at a time.
On Monday, when Thomas Hayes, the chief executive officer at Tyson Foods, the largest meat supplier in the US, was asked his view on the prospects of the pork industry next year, he said: “We don’t have an assumption that they are going to improve. … We just don’t know.”
“It’s hard to predict,” he said. “If you have an answer on that one, I’m happy to hear it.”
Meat producers are front and centre in the trade war that began in April when US President Donald Trump first threatened tariffs on US$50 billion of Chinese goods. While many had expected progress in negotiations by now, Washington and Beijing instead embarked on tit-for-tat retaliation.
