Snap-on CEO Had This to Say About China and the Trade War

According to Snap-on’s CEO, China is “more concerned than I heard them in a long time.”

CEO Nicholas Pinchuk commented, “In China, it’s a time of uncertainty there, because they don’t know how to react to” the pressure from the U.S. trade war.

Speaking to CNBC this week, the CEO has said that Snap-on sales in China have been strong over the past year but he’s not sure how long that can hold.

Snap-on Incorporated is an American designer, manufacturer and marketer of high-end tools and equipment for professional use in the transportation industry.

“It’s getting tougher to make those gains,” said Pinchuk.

President Donald Trump had told reporters China was ready to restart trade talks on Monday. Then on Friday the White House announced new tariff-hike plans after China had revealed its tariff retaliation.

“China called last night our top trade people and said ‘let’s get back to the table’ so we will be getting back to the table and I think they want to do something,” Trump said at the G-7 summit. “They have been hurt very badly but they understand this is the right thing to do and I have great respect for it. This is a very positive development for the world.”

“In general, when you talk to people in China, they’re more concerned than I heard them in a long time,” Pinchuk said to CNBC’s “Squawk Box. ”

He explained, “They’ve never known how to react to a downward” trend in economic confidence.

China said its economy grew at its lowest rate in 27 years during the second quarter.

“Right now, the Chinese are trying to manage over this celebration,” he said. After that, he said, negotiators are free to make a deal. “You’ve got to get by that to have political cover in China to have meaningful negotiations.”

Disclaimer: We have no position in Snap-on Incorporated (NYSE: SNA) and have not been compensated for this article.