The Trump team tried to say tariffs would not seriously hurt the cost of soup. Then the biggest soup company destroyed their entire story.
A senior Trump administration official's use of prop soup cans to sell the idea of trade tariffs backfired after Campbell's Soup released a statement detailing how consumers stand to lose from the idea.
Appearing on CNBC to calm investor fears after Trump's impromptu announcement of trade tariffs, Ross held up soup cans and said that with the tariffs the cost of soup in cans would go up "about six-tenths of one cent." He added, "Who in the world is going to be too bothered by six-tenths of a cent?"
Ross also claimed increases in car costs would not be a problem. He is a multimillionaire.
Soon after the appearance, Campbell Soup Company replied to Ross.
Speaking to Business Insider, spokesperson Thomas Hushen said, "Any new broad-based tariffs on imported tin plate steel — an insufficient amount of which is produced in the US — will result in higher prices on one of the safest and more affordable parts of the food supply."
The company's concerns echo those of many other businesses, who are raising red flags about tariffs.
Trump decided to push for tariffs without consulting experts on the issue, and many companies have said they will pass on increased costs to consumers.
Sparking a trade war could create a backlash that hurts American companies, including those in red states that supported Trump.
Relevant government agencies, like the State, Treasury, and Defense Departments, were caught flat-footed by the announcement. And since then, things have spiraled out of control.
Ross's embarrassing demonstration on television didn't take long for Campbell's dispel with just a few words.
It shows that the chaotic approach embraced by Trump is bad for business, the economy, and families who simply want to eat soup for dinner.