FedEx CEO Slams 'Protectionist' Tariffs as ‘Counterproductive to Economic Growth’

FedEx CEO Fred Smith worries about the impact of President Donald Trump’s recent imposition of “protectionist tariffs” on imported steel and aluminum (see 1803020038) because “history has shown repeatedly that protectionism is counterproductive to economic growth,” he said on a Tuesday earnings call. “The better approach is to encourage open markets and free exchange of products and services and to reduce barriers to trade,” he said. Smith thinks “the correct way to go here is to deal with China on the issues with China,” he said. FedEx will “continue to advocate against any move towards protectionist trade policies that could slow economic growth and undermine all the positive impacts” from the tax overhaul, said Chief Information Officer Rob Carter in Q&A. In the roughly two weeks since Trump announced he would impose the steel and aluminum tariffs on all but Canada and Mexico, “we’ve not seen any quantifiable shipper behavior change” as a result, said Carter.