Campbell Soup has released a statement refuting what Trump’s Commerce Secretary Wilbur Ross said this morning about the increase in tariffs and it’s soup.
First, here’s a reminder about what Ross said this morning:
Holding up a can of Campbell’s soup, Ross argued that “there are about 2.6 pennies worth of steel. So if that goes up by 25 percent, that’s about six-tenths of one cent on the price on a can of Campbell Soup…All this hysteria is a lot to do about nothing.”
Here’s how Campbell Soup responded to CNBC:
In a statement provided to CNBC earlier Friday about the tariffs, though, a Campbell spokesperson noted its impact on the company’s costs.
“Any new broad-based tariffs on imported tin plate steel — an insufficient amount of which is produced in the U.S. — will result in higher prices on one of the safest and more affordable parts of the food supply.”
Analysts agree with Campbell Soup:
Campbell Soup, which has heavy use of steel in its soup cans, will be among the food companies hurt the most, according to analysts at Credit Suisse.
Other companies that could be affected by the tariff include Kraft-Heinz, General Mills and Hershey, the analyst note said.
Increased costs for Campbell would come at an inopportune time for the soup company, which has been grappling with slowing sales and dealing with hard-bargaining retailers. This year Campbell is faced with integrating its $4.87 billion acquisition of snacks company Snyder’s-Lance, the largest ever deal in the soup company’s 148-year history.
This shows just how wide-ranging Trump’s tariffs will affect prices. From food to housing to appliances to you name it, anything that uses steel and aluminum will go up if Trump levies these tariffs.