America's biggest RV manufacturer warns tariffs are already raising costs, shares plunge
"W e are experiencing inflationary price increases in certain raw material and commodity based components due in large part to the headwinds created by the announcement and implementation of the steel and aluminum tariffs and other regulatory actions, as well as higher warranty costs," says Thor Industries CEO Bob Martin.
Thor also reports weaker-than-expected earnings for fiscal third quarter, while revenue came in just above a Reuters estimate.
Shares of Thor Industries THO , the largest manufacturer of recreational vehicles (RVs), dropped more than 8.5 percent in the premarket Thursday after the company raised concerns about the steel and aluminum tariffs implemented by the Trump administration.
Bob Martin, the company's CEO, said in a statement Wednesday that while labor costs during the fiscal third quarter moderated, "we are experiencing inflationary price increases in certain raw material and commodity based components due in large part to the headwinds created by the announcement and implementation of the steel and aluminum tariffs and other regulatory actions, as well as higher warranty costs."
President Donald Trump unveiled a 25 percent charge on steel imports and a 10 percent tariff on aluminum in March. Last week, the U.S. slapped those tariffs on Mexico, the European Union and Canada, three key trade partners that had been previously exempt.
The move has left investors on edge as fears that full-blown trade war between the U.S. and its trade partners could lie ahead.
Mexico released this week its own set of tariffs this week, targeting U.S. steel, cheese and pork. Canada also plans to slap dollar-for-dollar tariffs on the U.S., according to Chrystia Freeland, the country's minister of foreign affairs. The EU also threatened to retaliate with tariffs of its own.
Thor also reported weaker-than-expected earnings for fiscal third quarter, while revenue came in just above a Reuters estimate.
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