US giants in retail, automotive, and technology sectors warn of profit shocks amid tariff conflict
A rising number of U.S. companies across crucial sectors are expressing concern over the financial impact of President Donald Trump's tariff policies, as increasing costs and unpredictable global trade conditions pose threats to earnings, consumer...
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A rising number of U.S. companies across crucial sectors are expressing concern over the financial impact of President Donald Trump's tariff policies, as increasing costs and unpredictable global trade conditions pose threats to earnings, consumer behavior, and supply chain stability.
Apple faces $900 million in additional costs
During a recent quarterly earnings call, Apple CEO Tim Cook mentioned that the company has somewhat mitigated the immediate effects of tariffs by altering supply chains and managing inventory. However, he emphasized that the long-term consequences are more significant. “Assuming the current global tariff rates, we estimate the impact to add $900 million to our costs,” Cook noted.
GM expects up to $5 billion in tariff exposure
In the automotive industry, General Motors has reported an anticipated tariff-related exposure of $4 billion to $5 billion for the current year. In a letter to its shareholders, GM attributed the issue to supply chain pressures and increasing input costs driven by escalating trade tensions.
Retail and dining chains struggle with consumer pullback
The retail industry is already feeling the pressure. McDonald's has reported an unexpected decline in global sales, describing the current market conditions as "the most difficult market environment in recent years." The company highlighted that "low and middle-income consumers, in particular, are being weighed down by the cumulative impact of inflation and heightened anxiety about the economic outlook."
Other major food service companies have also issued warnings. Domino's stated that its delivery business continues to struggle due to "macro pressures" impacting low-income households, which form a key part of its customer base.
Footwear industry says tariffs are a 'threat to survival'
The footwear industry has taken its pleas directly to the White House. This week, the Footwear Distributors and Retailers of America sent a letter to the U.S. president, advocating for an exemption of shoes from the so-called reciprocal tariffs, describing them as "a threat to the survival of the industry."
The letter, which was signed by 76 prominent brands including Nike, Adidas, Skechers, and Under Armour, cautioned that firms manufacturing affordable footwear cannot absorb or pass on the additional costs. “We are deeply concerned about imminent US footwear job losses, added costs for consumers, and reduced consumer spending that will fundamentally hamper our industry and harm the entire US economy,” the letter stated. It also highlighted that many orders have already been suspended, raising the prospect of a footwear shortage for American consumers.
Debra A Smith contributed to this article for TROIB News
Apple faces $900 million in additional costs
During a recent quarterly earnings call, Apple CEO Tim Cook mentioned that the company has somewhat mitigated the immediate effects of tariffs by altering supply chains and managing inventory. However, he emphasized that the long-term consequences are more significant. “Assuming the current global tariff rates, we estimate the impact to add $900 million to our costs,” Cook noted.
GM expects up to $5 billion in tariff exposure
In the automotive industry, General Motors has reported an anticipated tariff-related exposure of $4 billion to $5 billion for the current year. In a letter to its shareholders, GM attributed the issue to supply chain pressures and increasing input costs driven by escalating trade tensions.
Retail and dining chains struggle with consumer pullback
The retail industry is already feeling the pressure. McDonald's has reported an unexpected decline in global sales, describing the current market conditions as "the most difficult market environment in recent years." The company highlighted that "low and middle-income consumers, in particular, are being weighed down by the cumulative impact of inflation and heightened anxiety about the economic outlook."
Other major food service companies have also issued warnings. Domino's stated that its delivery business continues to struggle due to "macro pressures" impacting low-income households, which form a key part of its customer base.
Footwear industry says tariffs are a 'threat to survival'
The footwear industry has taken its pleas directly to the White House. This week, the Footwear Distributors and Retailers of America sent a letter to the U.S. president, advocating for an exemption of shoes from the so-called reciprocal tariffs, describing them as "a threat to the survival of the industry."
The letter, which was signed by 76 prominent brands including Nike, Adidas, Skechers, and Under Armour, cautioned that firms manufacturing affordable footwear cannot absorb or pass on the additional costs. “We are deeply concerned about imminent US footwear job losses, added costs for consumers, and reduced consumer spending that will fundamentally hamper our industry and harm the entire US economy,” the letter stated. It also highlighted that many orders have already been suspended, raising the prospect of a footwear shortage for American consumers.
Debra A Smith contributed to this article for TROIB News
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