- Past Meat lately flagged the danger that “anti-American sentiment” may damage gross sales if it loses prospects in different nations or faces different types of retaliation that have an effect on its sourcing and manufacturing. That is as US tariffs set off a world backlash in opposition to American merchandise.
Past Meat, a producer of plant-based meat substitutes, lately warned that its standing as a US firm may damage gross sales amid a world backlash in opposition to President Donald Trump’s tariffs.
The El Segundo, Calif.-based firm filed a 10-Okay annual report with the SEC earlier this month that included a piece on danger elements.
In regulatory filings, such sections are sometimes a laundry record of a large universe of potential headwinds, with some extra possible than others. Past Meat’s flagged the attainable dangers related to epidemics, pure disasters, extreme climate, civil strife, conflict, terrorist exercise and different geopolitical tensions.
It additionally talked about Trump’s tariffs and plans for retaliation by US commerce companions like Canada, saying the corporate could have to lift costs, improve stock ranges, or discover new sourcing for merchandise that it imports.
“There is no assurance that we would be able to pass on any cost increases, in full or at all, to our customers, and/or we could lose customers in countries such as Canada due to anti-American sentiment, any of which could materially affect our revenue, gross margin and results of operations,” Past Meat warned.
Any commerce wars that function “buy national” insurance policies or different types of retaliation in opposition to US tariffs may damage the corporate’s provide chains, costs, demand, and macroeconomic markets, the submitting added.
For instance, Past Meat sources nearly all of its pea protein from Canada and manufactures a few of its merchandise there.
“We cannot predict future trade policy and regulations in the United States and other countries, the terms of any renegotiated trade agreements or treaties, or tariffs and their impact on our business. A trade war could have a significant adverse effect on world trade and the world economy,” it mentioned, noting that uncertainty on commerce coverage may impression client confidence and spending.
The corporate did not instantly reply to a request for additional remark.
To make sure, Past Meat’s gross sales had beforehand been in a stoop earlier than Trump returned to the White Home as demand for meat substitutes waned extra broadly.
However gross sales had lately began to show round. Fourth-quarter income rose 4% to $76.7 million, marking the second consecutive quarter of annual progress, the corporate mentioned final month.
Nonetheless, the backlash in opposition to US merchandise is actual, from alcohol to cutting-edge weapons. Canadians are pulling bottles of American liquor off cabinets, and gross sales of Tesla automobiles are collapsing in Europe as CEO Elon Musk interjects himself in nationwide elections and turns into extra intently related to Trump’s insurance policies.
Even the F-35 stealth fighter just isn’t immune. NATO allies Canada and Portugal are actually having second ideas about shopping for the fighter from the US and are looking at European alternate options.
This story was initially featured on Fortune.com
