Kraft Heinz warns of uncertainty over Trump’s trade war
Kraft Heinz CEO Bernardo Hees discusses how the trade conflicts between the U.S. and its trading partners are impacting his company.
As the tariff war between the U.S. and its biggest trading partners rages on, Kraft Heinz is feeling the squeeze. The maker of macaroni and cheese and ketchup says it is possible additional costs will be passed along to consumers.
“The uncertainty on tariffs is something that causes pause, because all the vast majority [of companies] are thinking 10, 15, 20 years, without understanding what are the rules of the game and price points are more difficult to predict,” CEO Bernardo Hees said on Friday during an interview with FOX Business’ Maria Bartiromo.
Hees declined to name the products that could cost more as a result of tariffs.
“It’s really a category by category answer to your question, but it’s no doubt that inflation costs continue to materialize like it is, it’s going to put large pressure not only on us, but on the entire retail environment,” he said.
While the U.S. and Mexico have struck a tentative trade deal to replace the North American Free Trade Agreement, negotiations with Canada are ongoing (and contentious).
President Trump has repeatedly threatened to slap another round of tariffs on the nation’s northern neighbor -- or freeze Canada out entirely.
And a tit-for-tat tariff battle between the U.S. and China has continued to escalate since February, when Trump first announced tariffs on imports of steel and aluminum. Hees lamented the impact that tariffs from China, Canada and the European Union have had on aluminum, oil prices, coffee, ketchup and meat.
“We really hope this whole situation in tariffs can dissolve in a short period,” he said.
Shares of Kraft Heinz have lost nearly 27% this year.