The fallout from President Donald Trump’s trade war continues as another company announces it will raise prices.
During its latest earnings call, Illinois-based Caterpillar said that the U.S. government’s import tariffs will increase material costs in the second half of 2018 by as much as $200 million. With supply chains having a challenge to limit freight costs, the iconic brand anticipates it will raise prices moving forward.
Caterpillar did upgrade its full-year profit outlook on Monday and reported a profit of $2.97 a share in the second quarter. However, the business thinks it can only sustain these profits by continuing its price hikes and cost discipline – Caterpillar raised prices on July 1.
This comes after Coca-Cola announced the import levies will force the company to raise soda prices.
Polaris, the manufacturer of motorcycles, snowmobiles, and boats, also confirmed it is hiking prices.
Is it any wonder that consumer prices surged 2.9 percent in June?
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