Economy

Campbell’s Soup Sinks Despite Wilbur Ross’s Assurances

JM Ashby
Written by JM Ashby

Commerce Secretary Wilbur Ross once said the price of an aluminum can filled with soup would only increase by "six-tenths of 1 cent" when Trump's tariffs on steel and aluminum imports were first announced (pictured above), but the tariffs are causing a lot more trouble than that for the Campbell's soup company.

Campbell's profits have nosedived by as much as 6 percent and their CEO has resigned thanks in part to Trump's tariffs.

From CNBC:

"At this stage, given what we know about accelerating cost inflation in part due to the anticipated impact of import tariffs and the continuing headwind on transportation and logistics cost, we expect our margins will be down in fiscal 2019," [Chief Financial Officer Anthony DiSilvestro] said. [...]

"The issue is primarily one of cost inflation and we're seeing and expecting an acceleration on the rate of inflation across a number of ingredient and packaging items," DiSilvestro said. "For example, we expect double-digit increases on steel and aluminum. A lot of that [is] driven or all of it's driven by the impact of anticipated tariffs."

Shares of Campbell's dropped by 12 percent after the news was announced on Friday and, while I'm certainly not going to lose sleep because a corporation is losing money, this is Trump's doing. It's not their fault or at least not entirely.

Campbell's has other problems, but it's also dealing with Trump's self-inflicted wound of tariffs will only increase costs for Americans.

It would be easier to say it's okay if American companies have to pay for Trump's tariffs if there were actually a benefit for doing so, but there isn't. This is like eating empty calories while on a diet. There's no there, there.

  • Draxiar

    I think of economics as the study of cause and effect. It applies to pretty much everything but we often associate with the “the economy”. When we have a *ahem* president that sees any and all economics as desperately trying to look tough or sexy or smart (when he clearly isn’t any of those) this is the sort of junk policy we get. Remember, this dipshit when bankrupt 6 times and lost money on a casino.

  • muselet

    That there are knock-on effects to tariffs is something Donald Trump did not—and still does not—understand. I doubt Wilbur Ross understands that, either (although I’m sure he found his first encounter with canned food fascinating.

    The executives of affected companies, on the other hand, understand that all too well. They aren’t going to be hurt, though, since their golden parachutes are already attached to static lines and ready to go.

    The ones to get hurt are the workers who’ll inevitably be laid off. I don’t want to be cynical, but it seems to me a sucker bet whether the laid-off workers will know where to direct their anger appropriately.

    All this because a few thousand people in three states voted for an economic imbecile.

    –alopecia

    • stacib23

      Your last sentence, in part, is what drives my misery about trump @ 1600.

  • David Greenberg

    Do you think Campbell’s donated to any Dems? I don’t think anyone but Campbell’s should lose any sleep. Unless of course, if the only thing you eat is their soup.

    • Badgerite

      Campbell’s produces their product here in the US and employs American workers. It isn’t all about the CEO’s.
      This is a company that produces and sells and employs people in the US.