Executives from leading US companies, including Intel, Skechers, and Procter & Gamble, have expressed concerns over the economic repercussions of tariffs enacted by the Trump administration. Companies are adjusting their profit forecasts and preparing for potential price increases as they navigate a challenging trade environment, while trade negotiations with South Korea show some positive signs.
US Executives Express Concerns Over Tariffs and Economic Outlook
US Executives Express Concerns Over Tariffs and Economic Outlook
Major US firms warn that tariffs are negatively impacting profits and economic forecasts in a shifting trade landscape.
Top executives from major US corporations have raised alarms regarding the adverse effects of tariffs on their business operations and the broader economy. Companies such as Intel, Skechers, and Procter & Gamble have either cut or withdrawn their profit forecasts due to growing economic uncertainty tied to these tariffs.
US President Donald Trump has utilized steep tariffs as a tactic to recalibrate trade relations with other nations. However, as of now, new trade agreements have not yet been established, although discussions with South Korea appear promising.
During a recent investor call, Intel's chief financial officer, David Zinsner, emphasized that the unpredictable nature of US trade policies, combined with regulatory uncertainties, has raised the likelihood of an economic downturn. Intel's shares fell by over 5% following this announcement, reflecting investor concern over the company's gloomy profit and revenue outlook.
Footwear manufacturer Skechers also faced investor disappointment, announcing a withdrawal of its annual forecast. Skechers’ chief operating officer, David Weinberg, noted that the current dynamic business environment makes it challenging to predict results with confidence.
Procter & Gamble (P&G), known for its household brands, indicated that tariffs could lead to increased prices for consumers. Financial chief Andre Schulten mentioned that the company is considering adjusting prices in response to rising costs from materials sourced overseas, projecting slower growth in sales compared to earlier estimates.
These developments are part of a broader trend where concerns related to Trump's trade policies are echoed among various companies globally. Meanwhile, recent trade negotiations between US and South Korean officials have yielded encouraging results, with Treasury Secretary Scott Bessent describing the discussions as "very successful." South Korean industry minister Ahn Duk-geun expressed hope for a "July package" as the negotiations progress, signaling potential movement in lifting some tariffs.
As tariffs continue to shape the economic landscape, over 70 countries have reportedly reached out to the US to begin negotiations, reflecting ongoing international trade tensions amidst efforts to stabilize economic relations.
