TI Backs Free Trade, but Sees No ‘Direct Impact’ From Chinese Tariffs, Says CFO

Anything that goes against free trade between the world's two largest economies "could eventually have a macro effect that would be detrimental to everybody,” said Texas Instruments Chief Financial Officer Rafael Lizardi on a Tuesday-evening earnings call, about the Trump administration’s proposed 25 percent Trade Act Section 301 tariffs against Chinese semiconductor imports (see 1807240005). TI sees no “direct impact other than some minimal impact” if those tariffs take effect, he said. TI draws only about 13 percent of its revenue from products it imports to the U.S., he said. “Only a sliver of that has Chinese origin,” he said. “Only about 1 percent of our revenue would have those tariffs applied to it,” and that's before TI makes “any adjustments” in its supply chain “and other things that we could do to even minimize that impact further,” he said. The earnings call was TI's first since it named Chairman Rich Templeton to return to his former CEO role, replacing Brian Crutcher, who resigned for allegedly violating the company's code of conduct in his personal behavior (see 1807180062). Templeton, who didn't appear on the call, is "fully engaged" and busy "executing our strategy," said Dave Pahl, vice president-investor relations.