CSX CEO Joe Hinrichs mentioned what a change in tariffs and manufacturing would possibly imply for the railroad line in a Thursday interview with CNBC’s Jim Cramer, explaining why he thinks his firm is well-positioned.
“From our standpoint, really, so long as it is coming to the U.S., we will transfer it someplace,” Hinrichs mentioned. “If tariffs change the commerce portfolio — so long as the economic system’s rising, we’ll be part of it.”
CSX operates totally on the East Coast, offering rail and intermodal freight transport providers. It’s current in dozens of port cities and transports home and worldwide items.
President-elect Donald Trump is predicted to boost tariffs considerably when he takes workplace, which might change commerce patterns, particularly with China. Hinrichs mentioned CSX’s big selection of operations means it could possibly hold enterprise going even when the panorama modifications. For instance, he mentioned that many supplies arriving at West Coast ports must be moved east, and CSX helps transport them from cities like Chicago or Memphis.
Hinrichs additionally advised that a rise in home manufacturing can be constructive for CSX, one thing that could possibly be bolstered by the Trump administration’s tariff insurance policies. Based on Hinrichs, many firms wish to construct large initiatives within the southeast, the place he mentioned CSX is a dominant participant. He mentioned the corporate has 500 industrial growth initiatives in its community, with “one other thousand websites, in our stock as prospects.”
“If it is made in America, we’ll transfer it on rail,” he mentioned.