CSX CEO talks tariffs and manufacturing: 'As long as the economy’s growing, we’ll be a part of it'

by · CNBC

Key Points

  • CSX CEO Joe Hinrichs discussed what a change in tariffs and manufacturing might mean for the railroad line.
  • "From our standpoint, actually, as long as it's coming to the U.S., we're going to move it somewhere," Hinrichs said. "If tariffs change the trade portfolio — as long as the economy's growing, we'll be a part of it."

In this article

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CSX CEO Joe Hinrichs discussed what a change in tariffs and manufacturing might mean for the railroad line in a Thursday interview with CNBC's Jim Cramer, explaining why he thinks his company is well-positioned.

"From our standpoint, actually, as long as it's coming to the U.S., we're going to move it somewhere," Hinrichs said. "If tariffs change the trade portfolio — as long as the economy's growing, we'll be a part of it."

CSX operates primarily on the East Coast, providing rail and intermodal freight transport services. It is present in dozens of port cities and transports domestic and international goods.

President-elect Donald Trump is expected to raise tariffs substantially when he takes office, which could change trade patterns, especially with China. Hinrichs said CSX's wide range of operations means it can keep business going even if the landscape changes. For example, he said that many materials arriving at West Coast ports need to be moved east, and CSX helps transport them from cities like Chicago or Memphis.

Hinrichs also suggested that an increase in domestic manufacturing would be positive for CSX, something that could be bolstered by the Trump administration's tariff policies. According to Hinrichs, many corporations want to build big projects in the southeast, where he said CSX is a dominant player. He said the company has 500 industrial development projects in its network, with "another thousand sites, in our inventory as possibilities."

"If it's made in America, we'll move it on rail," he said.

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