Cummins CEO writes about dangers of tariffs
Cummins CEO Tom Linebarger has a column in the New York Times today, warning of the dangers of the president’s trade war. The executive for the Columbus based diesel engine manufacturer warns of the dangers to Cummins Seymour plant, where 80 percent of the products manufactured end up going to overseas markets.
Linebarger says that tariffs on imported steel and aluminum are raising the costs of production, and other countries’ tariffs in retaliation will make Cummins engines even more expensive overseas. Further, he said Cummins products that are manufactured overseas could face tariffs bringing them back in to the U.S. market. For example, an engine designed in Seymour but built in China, would face a 25 percent price hike from the tariffs when they are sold here.
He said that the tariffs are hurting negotiations and companies like Cummins are left standing still, unsure of how or where to invest.