Kick 'em while they're down: Tariffs hit struggling US food, beverage companies Pepsi, J.M. Smucker,
Kick 'em while they're down: Tariffs hit struggling US food, beverage companies Pepsi, J.M. Smucker, Campbell Soup
https://www.cnbc.com/2018/07/02/tariffs-kick-food-beverage-companies-that-are-already-down.html
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Canada's levy on soups is expected to hit Campbell Soup particularly hard.
"With a 10 percent tariff on soups and broths and tomato products representing the core of Campbell's products that are sold in Canada and made from both U.S. and Canadian ingredients Campbell estimates the economic impact to our Canadian business to be significant," company spokesperson Alexandra Sockett said in an email to CNBC. "We are evaluating ways to offset the potential tariff impact and working closely with our customers."
The new taxes on food products follow on the Trump administration's tariffs on imported steel and aluminum, 25 percent and 10 percent, respectively, which are also expected to squeeze the company's profits. The tin plate steel used to make Campbell Soup cans accounts for the New Jersey-based company's largest outlay for materials.
Campbells CFO, Anthony DiSilvestro, in May called out the expected squeeze from tariffs as having a likely impact on the companys earnings for its fiscal year beginning July 30.
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