Supply Chain Research

U.S. tariffs on Chinese imports do not appear to be having a major impact on Illinois Tool Works with CFO Michael Larsen stating the latest increase “has really had an immaterial impact … we’re talking pennies of EPS”. Yet, that doesn’t mean the company has been inactive. ITW’s cut its U.S. seaborne imports from China with a 57.5% year over year drop in 2Q compared to a 0.6% increase in 1Q. Further tariff increases may require price rises – there’s no major alternatives available in its existing supply chain for imports of nails from China in particular.