Trump’s Steel and Aluminum Tariffs Will Hurt These 5 Stocks

General Electric Company (NYSE:GE)

About the last thing embattled GE needed was more operational challenges, yet that’s precisely what the tariffs have thrust upon it. The company uses aluminum and steel to manufacture a wide-range of products, from heavy machinery to jet engines.

Somewhat surprisingly, General Electric Company (NYSE:GE) has claimed that the impact of the tariffs will be “minimal” and that earlier reports concerning the potential impact on its costs were “completely unfounded”. The company seemed to reach this conclusion by only looking at the amount of imported metals that it uses which would be affected, seemingly ignoring the reality that even domestic prices will rise because of the tariffs. That has clearly been the case over the past five months, as domestic HRC and CRC steel prices have jumped by nearly 50%.

General Electric Company (NYSE:GE), whose shares are down by 27% this year and which was recently removed from the Dow Jones, could also face added challenges in unloading some of its assets, including its rail business, due to the rising costs of running that business. The company is also extremely susceptible to counter-tariffs, doing the majority of its business overseas.

Harley-Davidson Inc (NYSE:HOG)

Harley-Davidson Inc (NYSE:HOG) appears to be in danger of suffering both domestically and internationally from the tariffs, with its shares being down by 14% in 2018 as a result. Not only will the motorcycle maker be affected by rising steel and aluminum prices, with costs rising by as much as $20 million this year according to the company, but the E.U has taken direct aim at Harley-Davidson in its counter-tariffs.

Europe, which accounts for about 16% of Harley-Davidson’s sales, included big motorcycles in its list of U.S products that will be hit with tariffs in retaliation for the U.S tariffs on steel and aluminum. Harley-Davidson has stated that such tariffs would have a significant impact on the company’s sales, at a time when its sales and profit are already slumping.

Campbell Soup Company (NYSE:CPB)

Campbell Soup Company (NYSE:CPB), shares of which have slumped by 22% this year, stated during its conference call last month that the tariffs could pinch the company’s margins in 2018. Campbell’s warned that the cost of tin plate steel, which the company uses to craft its many soup cans, would be forced higher due to insufficient supply being available solely from U.S steel producers. In rebuttal, Commerce Secretary Wilbur Ross claimed that Campbell’s soup cans use just $0.026 worth of steel, making the impact of the steel tariffs less than a cent per can. Nonetheless, even less than one cent still adds up when you’re selling hundreds of millions of cans annually.

Campbell Soup Company (NYSE:CPB) was likely eager to jump on any possible excuse for its future performance, as its past performance has left much to be desired, which culminated in CEO Denise Morrison stepping down recently after a rather unsuccessful seven years as the soup company’s leader.

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