Feb. 18 at 2:57 AM
$CPB $CAG Sure is interesting that another huge part of the tariff puzzle fell into place this morning but due to
$GIS slashed earnings guidence on more tariff impact than originally expected killed the whole sector.
There are no coincidences in this game, big money knows what's coming and they are over extended in short positions, especially in
$CPB (18% short) which has 300m in tariff exposure, mostly from the 50% steel tariff and also
$CAG has 200m tariff exposure.
Punishing US food companies with 50% steel Tariffs for steel tin plate cans when the US has no intention on rebuilding this part of the steel industry will be ending soon. 80% of these type of steel mills in the US have been shut down and would take years and billions to bring back.
Supreme court ruling on IEEPA tariffs are the next possible catalyst (this Friday possibly), this has nothing to do with the above mentioned tariffs but would be huge for this sector.
