next year, before mitigation efforts – and up to $150 million more if the U.S. follows through on other proposed tariff moves. The company said it plans to raise prices in January to adjust for tariffs imposed this fall and has sought exemptions for some imports. “I want to make it very clear that it’s not a doom-andgloom story right now, and we don’t expect it to be in the fourth quarter, because the bulk of the tariff increases really don’t hit until January 1,” Chief Executive James Loree told investors in October.
Some companies said raising prices, as many have done, takes time and isn’t always possible.
BorgWarner Inc., which sells parts primarily to car and truck makers, said it expects $20 million in tariff and inflation costs this year, but has absorbed all of it so far.
“We’ve not passed anything through,” CEO Frédéric Lissalde said. “Discussions take time and are happening.”
Mohawk Industries Inc., which makes flooring and countertops, said it has announced price increases on its imports from China that cover both the tariffs and other rising costs. The company also has revamped supply chains. Still, Mohawk CEO Jeffrey Lorberbaum urged patience and said in the short term that higher prices could drive customers to buy other products unaffected by the tariffs. “It won’t happen like a light switch,” Mr. Lorberbaum said.
Zoetis Inc., a veterinary pharmaceutical company, said it could recoup lost sales to U.S. livestock producers, which have seen demand from China slip due to tariffs, through rising demand elsewhere.
Fortune Brands Home & Security Inc., which sells cabinetry, doors and home-security products, said tariffs are expected to cost it $2 million to $3 million in the fourth quarter, and more in January if tariff rates increase.
Long term, it said, the levies may help the company as it relies more on production and assembly in locations unaffected by tariffs. It is moving more door-component production to a facility in Mexico, for example, executives said on a conference call with analysts in October.
“Tariffs are not trivial, but they are manageable,” CEO Christopher Klein said. “Once we manage through the initial impact, we actually see potential upside for us from the tariffs given our competitive positions.”