Home / Business / Cisco expected the Trump China tariff hike but somewhat more worrying

Cisco expected the Trump China tariff hike but somewhat more worrying



Two of Cisco Systems' senior executives told CNBC that additional US import tariffs from China would not harm San Jose, California-based network equipment manufacturers without US industries as a whole.

"If it goes to the whole of China imports, it will not only affect us, but it will affect all industries," says Cisco CFO Kelly Kramer Wednesday night on CNBC's "Mad Money."

With a stalemate in trade negotiations The Trump administration released this week a list of about $ 300 billion in Chinese goods that could suffer from customs, which would effectively lead to China's imports into the United States

Cisco chairman and chief executive Chuck Robbins, sitting next to Kramer, said that The company was prepared for last week's tariff increase to 25% from 1

0% on $ 200 billion Chinese goods, making the increase "relatively insignificant at this time and built into our guidance."

For their part, in retaliation for US movements, China announced on Monday to raise rates of $ 60 billion of US goods.

When reporting better than expected quarterly earnings, revenue – and forward after Wednesday, Cisco said it had reduced its manufacturing in China while the latest White House moved, which President Donald Trump had threatened for some time.

"The reason we have been able to soften … is just that is part of the business," Kramer said. "We'll adjust" if it changes, she added.

Meanwhile, Walmart CFO Brett Biggs expressed similar feelings and said Thursday that customs could lead to higher prices. "Increased fees will increase customer prices," he said.

As Cisco, Walmart also reported strong quarterly results. Both companies' stocks are components of the Dow Jones Industrial Average. With Cisco shares up 7% and Walmart rising nearly 2%, Dow went on Thursday for a three-session winning strike, following a bleak start to the week on a block of negative trading headlines.


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