Trade war has eroded the profits of US companies. US steel prices are the most expensive in the world.

Overseas media said that the profit growth of US companies slowed down after the sharp growth at the beginning of the year, and the trade war began to put pressure on many American companies such as Caterpillar and Ford.
According to Reuters reported on October 24, US President Trump was proud of the stock market rise during his term of office, but this stock market volatility is unfortunately in the two weeks before the mid-term election.
According to the report, Trump focused on global trade policy with a view to revitalizing US manufacturing.
But Caterpillar, the world’s largest manufacturer of construction equipment, said before the opening of the US market on October 23 that Trump’s steel import tariffs and freight charges rose, resulting in a company’s cost of about $40 million in the most recent quarter.
“Trade tensions have indeed put pressure on companies to be under pressure, and we may see profit growth peaking,” said Stovall, chief investment strategist at the Center for Financial Research and Analysis in New York. He also said that affected by this, higher market valuations may mean that investors are not willing to pay as much for the company’s profits.
According to Trinitabus Investment Research, US companies will repurchase more than $1 trillion in their own stock this year, and a decline in valuations may lure them back to buy more.
The report said that the $1.5 trillion tax cuts passed by the Republican-controlled US Congress in December 2017 boosted corporate profits earlier this year and encouraged companies to repatriate overseas profits back to the US, but analysts said. The impact of tax cuts is now being offset by the cost of new import tariffs.

Send your message to us:

Post time: Oct-31-2018
WhatsApp Online Chat !