From Yahoo Finance: 2025-05-29 12:05:00

President Donald Trump’s trade war has cost companies over $34 billion in lost sales and higher costs, paralyzing decision-making. Companies like Apple, Ford, and Sony have cut profit forecasts due to trade policy uncertainty. Economists predict costs will exceed disclosed amounts. The ripple effects could lead to lower spending and higher inflation.

Recent trade hostilities pause offers some relief, but final trade deals remain unclear. Companies are uncertain about costs, with 42 companies cutting forecasts and 16 withdrawing guidance. Trump’s argument that tariffs will reduce the trade deficit and bring jobs home is contested. Tariffs are expected to impact various industries, including automakers and consumer goods.

360 S&P 500 companies mentioned tariffs in earnings calls, up from 150 in the previous quarter, with similar trends in the STOXX 600 and Nikkei 225 companies. Wall Street expects a lower net profit growth rate for S&P 500 companies. Automakers, airlines, and consumer goods importers are severely affected by tariffs on raw materials and parts.

Kimberly Clark cut its profit forecast due to tariffs, planning to invest $2 billion in U.S. manufacturing. Diageo will cut costs and make asset disposals to offset import tariffs. Analysts predict tariffs will increase the cost of consumer products. Companies like Apple and Eli Lilly have announced investments in the U.S. amid tariff uncertainties.



Read more at Yahoo Finance: $34 billion and counting, global companies say