The FedEX CEO is unhappy by the rising tariffs imposed against China by President Donald Trump and the increasing trade war happening globally. Fred Smith, the chief executive of FedEX told the analysts this Monday that trade spat between China and US is going to be worrisome for everyone. Smith said that the countries pursuing many open markets or businesses are considered to be more prosperous where the income of its citizen increases rapidly. He added that mercantilism will not work here. The company held their earnings as soon as the President’s administration has announced the rise in tariffs on goods imported from China worth two hundred billion dollars which is going to effect from next week. These tariffs will target many networking equipments which are used by well known tech companies of US. Fred Smith praised the former Trade Representatives of US by saying that they are making good efforts from many years.
But the USTR Robert Lighthizer is going to look after the new tariffs imposed by the Trump’s administration. Smith told that the company doesn’t work too much in China. The revenue generated from the shipping sales between US and China accounts only two percent of the total sales, where only small part of revenue will be deducted as a part of tariffs. He added, uncertainty caused due to this issue and potential for increasing tariffs will affect the market, which may create some economic activity by China. FedEX is the first largest US Company to report the latest earnings. As the profits of FedEX missed the forecasts, the stock price came down about four percent on Tuesday. The results of third quarter will be seen in October, which will sound alarm over the trade by other executives too. The tech leaders like Dell, Cisco and Apple have expressed their concerns towards Trump Administration.