Some of the largest companies in America are reporting this week they are suffering the sting of the Trump administration's trade war, sounding alarm in an otherwise prosperous economy.
General Motors said Wednesday that it has lowered its outlook for 2018 earnings in part because of significant increases in the costs of raw material. GM's stock fell more than 6 per cent during early morning trading. Trump imposed tariffs on aluminium and steel - major components of cars - earlier this year.
Harley-Davidson said Tuesday that it expects its operating margin as a per cent of revenue to hit 9 to 10 per cent because of the impact of the tariffs, down slightly from last year. And Whirlpool, which was supposed to benefit from Trump-imposed tariffs on foreign-made washing machines earlier this year, reported Tuesday that it did not make its second-quarter earnings estimates as steel prices rose 50 per cent.
On a company earning's call, Whirlpool chief executive Marc Bitzer said steel costs worldwide have "risen substantially. "
"And in particular in the US, they have reached unexplainable levels," Bitzer said.