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RTÉ News
2 days ago
- Automotive
- RTÉ News
Trump's tariff tally: $34 billion and counting, global companies say
President Donald Trump's trade war has cost companies more than $34 billion in lost sales and higher costs, according to a Reuters analysis of corporate disclosures. This toll is expected to rise as ongoing uncertainty over tariffs paralyses decision making at some of the world's largest companies. Across the US, Asia and Europe, companies including Apple, Ford, Porsche and Sony have pulled or slashed their profit forecasts, and an overwhelming majority say the erratic nature of Trump's trade policies has made it impossible to accurately estimate costs. Reuters reviewed company statements, regulatory filings, conference and media call transcripts to pull together for the first time a snapshot of the tariff cost so far for global businesses. The $34 billion is a sum of estimates from 32 companies in the S&P 500, three companies from Europe's STOXX 600 and 21 companies in Japan's Nikkei 225 indices. Economists say the cost to businesses will likely be multiple times what companies have so far disclosed. "You can double or triple your tally and we'd still say ... the magnitude is bound to be far greater than most people realise," said Jeffrey Sonnenfeld, professor at the Yale School of Management. The ripple effects could be worse, he added, citing the potential for lower spending from consumers and businesses, higher inflation expectations. While a recent pause in Sino-US trade hostilities has offered some relief and Trump has backed down from tariff threats against Europe, it is still not clear what the final trade deals will look like. A US trade court on Wednesday blocked Trump's tariffs from going into effect. In this environment, strategists say companies will look to strengthen supply chains, boost near-shoring efforts, and prioritise new markets - all of which will push up costs. Companies themselves are uncertain about the final cost. As the corporate earnings season draws to a close, Reuters found at least 42 companies have cut their forecasts and 16 have withdrawn or suspended their guidance. For instance, earlier this month, Walmart declined to provide a quarterly profit forecast and said it would raise prices, drawing a rebuke from Trump. Volvo Cars, one of the European automakers most exposed to US tariffs, withdrew its earnings forecast for the next two years and United Airlines gave two different forecasts, saying it was impossible to predict the macro environment this year. Trump has argued that tariffs will cut America's trade deficit and prompt companies to move operations to the country, bringing jobs back home. Tariffs will also force countries including Mexico to stop the flow of illegal immigrants and drugs into the US, Trump has said. "The administration has consistently maintained that the US has the leverage to make our trading partners ultimately bear the cost of tariffs," said White House spokesperson Kush Desai. Tariff talk On earnings conference calls for the January to March quarter, 360 companies, or 72%, in the S&P 500 index mentioned tariffs, up from 150 companies, or 30%, in the previous quarter. Executives at 219 companies listed on the STOXX 600 mentioned tariffs, compared with 161 in the prior quarter. Of the Nikkei 225 companies in Japan, that number was 58, up from 12 earlier. "I don't think corporations have an awful lot of visibility about anything in the future," said Rich Bernstein, CEO of Richard Bernstein Advisors in New York. Referring to withdrawn forecasts, he said. "If you take into account this uncertain world and you can't guide anybody to a number, it's safer not to guide," he added. Wall Street is expecting net profit for companies in the S&P 500 index to grow at an average 5.1% per quarter from April to December, compared to a growth rate of 11.7% a year earlier, according to data compiled by LSEG. Automakers, airlines and consumer goods importers have been among the worst hit. Levies on raw material costs and parts including aluminum and electronics have risen, and tariffs on multiple countries are making assembling cars more expensive because of far-flung supply chains. Moving any production to the US will also raise labour costs. Kleenex tissue maker Kimberly Clark slashed its annual profit forecast last month and said it would incur about $300m in costs this year as tariffs push up its supply-chain costs. A few days later the company said it would invest $2 billion over five years to expand its manufacturing capacity in the US, a number not included in the Reuters tally. Companies including Apple and Eli Lilly have this year announced investments in the US. Johnnie Walker whiskey and Don Julio tequila maker Diageo, which also makes Guinness, said said earlier this month it would cut $500m in costs and make substantial asset disposals by 2028, as a 10% tariff on imports from places like Britain and the European Union is expected to deal a $150m hit to its operating profit every year.
Business Recorder
3 days ago
- Business
- Business Recorder
Trump's tariff tally: $34 billion and counting, global companies say
SAN FRANCISCO/NEW YORK/BENGALURU: President Donald Trump's trade war has cost companies more than $34 billion in lost sales and higher costs, according to a Reuters analysis of corporate disclosures, a toll that is expected to rise as ongoing uncertainty over tariffs paralyzes decision making at some of the world's largest companies. Across the United States, Asia and Europe, companies including Apple, Ford, Porsche and Sony have pulled or slashed their profit forecasts, and an overwhelming majority say the erratic nature of Trump's trade policies has made it impossible to accurately estimate costs. US court blocks Trump's tariffs, says president exceeded his authority Reuters reviewed company statements, regulatory filings, conference and media call transcripts to pull together for the first time a snapshot of the tariff cost so far for global businesses. The $33 billion is a sum of estimates from 32 companies in the S&P 500, three companies from Europe's STOXX 600 and 21 companies in Japan's Nikkei 225 indices. Economists say the cost to businesses will likely be multiple times what companies have so far disclosed. 'You can double or triple your tally and we'd still say … the magnitude is bound to be far greater than most people realize,' said Jeffrey Sonnenfeld, professor at the Yale School of Management. The ripple effects could be worse, he added, citing the potential for lower spending from consumers and businesses, higher inflation expectations. While a recent pause in Sino-US trade hostilities has offered some relief and Trump has backed down from tariff threats against Europe, it is still not clear what the final trade deals will look like. A U.S. trade court on Wednesday blocked Trump's tariffs from going into effect. In this environment, strategists say companies will look to strengthen supply chains, boost near-shoring efforts, and prioritize new markets - all of which will push up costs. Companies themselves are uncertain about the final cost. As the corporate earnings season draws to a close, Reuters found at least 42 companies have cut their forecasts and 16 have withdrawn or suspended their guidance. For instance, earlier this month, Walmart declined to provide a quarterly profit forecast and said it would raise prices, drawing a rebuke from Trump. Trump's tariffs to remain in effect after appeals court grants stay Volvo Cars, one of the European automakers most exposed to U.S. tariffs, withdrew its earnings forecast for the next two years and United Airlines gave two different forecasts, saying it was impossible to predict the macro environment this year. Trump has argued that tariffs will cut America's trade deficit and prompt companies to move operations to the country, bringing jobs back home. Tariffs will also force countries including Mexico to stop the flow of illegal immigrants and drugs into the United States, Trump has said. 'The Administration has consistently maintained that the United States … has the leverage to make our trading partners ultimately bear the cost of tariffs,' said White House spokesperson Kush Desai. Tariff talk On earnings conference calls for the January to March quarter, 360 companies, or 72%, in the S&P 500 index mentioned tariffs, up from 150 companies, or 30%, in the previous quarter. Executives at 219 companies listed on the STOXX 600 mentioned tariffs, compared with 161 in the prior quarter. Of the Nikkei 225 companies in Japan, that number was 58, up from 12 earlier. 'I don't think corporations have an awful lot of visibility about anything in the future,' said Rich Bernstein, CEO of Richard Bernstein Advisors in New York. Referring to withdrawn forecasts, he said, 'If you take into account this uncertain world and you can't guide anybody to a number, it's safer not to guide.' Wall Street is expecting net profit for companies in the S&P 500 index to grow at an average 5.1% per quarter through April through December, versus a growth rate of 11.7% a year earlier, according to data compiled by LSEG. Automakers, airlines and consumer goods importers have been among the worst hit. Levies on raw material costs and parts including aluminum and electronics have risen, and tariffs on multiple countries are making assembling cars more expensive because of far-flung supply chains. Moving any production to the United States will also raise labor costs. Kleenex tissue maker Kimberly Clark slashed its annual profit forecast last month and said it would incur about $300 million in costs this year as tariffs push up its supply-chain costs. A few days later the company said it would invest $2 billion over five years to expand its manufacturing capacity in the U.S., a number not included in the Reuters tally. Companies including Apple and Eli Lilly have this year announced investments in the United States. Johnnie Walker whiskey and Don Julio tequila maker Diageo said earlier this month it would cut $500 million in costs and make substantial asset disposals by 2028, as a 10% tariff on imports from places like Britain and the European Union is expected to deal a $150 million hit to its operating profit every year. 'Tariffs could significantly drive up the cost of a nice night out - or even a cozy night in,' said Zak Stambor, analyst with eMarketer.
Time of India
3 days ago
- Business
- Time of India
Trump's tariff tally: $34 billion and counting, global companies say
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads President Donald Trump's trade war has cost companies more than $34 billion in lost sales and higher costs, according to a Reuters analysis of corporate disclosures, a toll that is expected to rise as ongoing uncertainty over tariffs paralyzes decision making at some of the world's largest the United States, Asia and Europe, companies including Apple, Ford, Porsche and Sony have pulled or slashed their profit forecasts, and an overwhelming majority say the erratic nature of Trump's trade policies has made it impossible to accurately estimate costs. Reuters reviewed company statements, regulatory filings, conference and media call transcripts to pull together for the first time a snapshot of the tariff cost so far for global $33 billion is a sum of estimates from 32 companies in the S&P 500, three companies from Europe's STOXX 600 and 21 companies in Japan's Nikkei 225 indices. Economists say the cost to businesses will likely be multiple times what companies have so far disclosed."You can double or triple your tally and we'd still say ... the magnitude is bound to be far greater than most people realize," said Jeffrey Sonnenfeld, professor at the Yale School of ripple effects could be worse, he added, citing the potential for lower spending from consumers and businesses, higher inflation expectations. While a recent pause in Sino-US trade hostilities has offered some relief and Trump has backed down from tariff threats against Europe, it is still not clear what the final trade deals will look like. A U.S. trade court on Wednesday blocked Trump's tariffs from going into effect. In this environment, strategists say companies will look to strengthen supply chains, boost near-shoring efforts, and prioritize new markets - all of which will push up costs. Companies themselves are uncertain about the final cost. As the corporate earnings season draws to a close, Reuters found at least 42 companies have cut their forecasts and 16 have withdrawn or suspended their guidance. For instance, earlier this month, Walmart declined to provide a quarterly profit forecast and said it would raise prices, drawing a rebuke from Trump. Volvo Cars, one of the European automakers most exposed to U.S. tariffs, withdrew its earnings forecast for the next two years and United Airlines gave two different forecasts, saying it was impossible to predict the macro environment this has argued that tariffs will cut America's trade deficit and prompt companies to move operations to the country, bringing jobs back home. Tariffs will also force countries including Mexico to stop the flow of illegal immigrants and drugs into the United States, Trump has said."The Administration has consistently maintained that the United States ... has the leverage to make our trading partners ultimately bear the cost of tariffs," said White House spokesperson Kush TALK On earnings conference calls for the January to March quarter, 360 companies, or 72%, in the S&P 500 index mentioned tariffs, up from 150 companies, or 30%, in the previous quarter. Executives at 219 companies listed on the STOXX 600 mentioned tariffs, compared with 161 in the prior quarter. Of the Nikkei 225 companies in Japan, that number was 58, up from 12 earlier. "I don't think corporations have an awful lot of visibility about anything in the future," said Rich Bernstein, CEO of Richard Bernstein Advisors in New York. Referring to withdrawn forecasts, he said, "If you take into account this uncertain world and you can't guide anybody to a number, it's safer not to guide."Wall Street is expecting net profit for companies in the S&P 500 index to grow at an average 5.1% per quarter through April through December, versus a growth rate of 11.7% a year earlier, according to data compiled by airlines and consumer goods importers have been among the worst hit. Levies on raw material costs and parts including aluminum and electronics have risen, and tariffs on multiple countries are making assembling cars more expensive because of far-flung supply chains. Moving any production to the United States will also raise labor costs. Kleenex tissue maker Kimberly Clark slashed its annual profit forecast last month and said it would incur about $300 million in costs this year as tariffs push up its supply-chain costs. A few days later the company said it would invest $2 billion over five years to expand its manufacturing capacity in the U.S., a number not included in the Reuters tally. Companies including Apple and Eli Lilly have this year announced investments in the United States. Johnnie Walker whiskey and Don Julio tequila maker Diageo said earlier this month it would cut $500 million in costs and make substantial asset disposals by 2028, as a 10% tariff on imports from places like Britain and the European Union is expected to deal a $150 million hit to its operating profit every year."Tariffs could significantly drive up the cost of a nice night out - or even a cozy night in," said Zak Stambor, analyst with eMarketer.
Yahoo
3 days ago
- Business
- Yahoo
Analysis-Trump's tariff tally: $34 billion and counting, global companies say
By Sayantani Ghosh, David Gaffen, Arpan Varghese SAN FRANCISCO/NEW YORK/BENGALURU (Reuters) -President Donald Trump's trade war has cost companies more than $34 billion in lost sales and higher costs, according to a Reuters analysis of corporate disclosures, a toll that is expected to rise as ongoing uncertainty over tariffs paralyzes decision making at some of the world's largest companies. Across the United States, Asia and Europe, companies including Apple, Ford, Porsche and Sony have pulled or slashed their profit forecasts, and an overwhelming majority say the erratic nature of Trump's trade policies has made it impossible to accurately estimate costs. Reuters reviewed company statements, regulatory filings, conference and media call transcripts to pull together for the first time a snapshot of the tariff cost so far for global businesses. The $33 billion is a sum of estimates from 32 companies in the S&P 500, three companies from Europe's STOXX 600 and 21 companies in Japan's Nikkei 225 indices. Economists say the cost to businesses will likely be multiple times what companies have so far disclosed. "You can double or triple your tally and we'd still say ... the magnitude is bound to be far greater than most people realize," said Jeffrey Sonnenfeld, professor at the Yale School of Management. The ripple effects could be worse, he added, citing the potential for lower spending from consumers and businesses, higher inflation expectations. While a recent pause in Sino-US trade hostilities has offered some relief and Trump has backed down from tariff threats against Europe, it is still not clear what the final trade deals will look like. A U.S. trade court on Wednesday blocked Trump's tariffs from going into effect. In this environment, strategists say companies will look to strengthen supply chains, boost near-shoring efforts, and prioritize new markets - all of which will push up costs. Companies themselves are uncertain about the final cost. As the corporate earnings season draws to a close, Reuters found at least 42 companies have cut their forecasts and 16 have withdrawn or suspended their guidance. For instance, earlier this month, Walmart declined to provide a quarterly profit forecast and said it would raise prices, drawing a rebuke from Trump. Volvo Cars, one of the European automakers most exposed to U.S. tariffs, withdrew its earnings forecast for the next two years and United Airlines gave two different forecasts, saying it was impossible to predict the macro environment this year. Trump has argued that tariffs will cut America's trade deficit and prompt companies to move operations to the country, bringing jobs back home. Tariffs will also force countries including Mexico to stop the flow of illegal immigrants and drugs into the United States, Trump has said. 'The Administration has consistently maintained that the United States ... has the leverage to make our trading partners ultimately bear the cost of tariffs," said White House spokesperson Kush Desai. TARIFF TALK On earnings conference calls for the January to March quarter, 360 companies, or 72%, in the S&P 500 index mentioned tariffs, up from 150 companies, or 30%, in the previous quarter. Executives at 219 companies listed on the STOXX 600 mentioned tariffs, compared with 161 in the prior quarter. Of the Nikkei 225 companies in Japan, that number was 58, up from 12 earlier. "I don't think corporations have an awful lot of visibility about anything in the future," said Rich Bernstein, CEO of Richard Bernstein Advisors in New York. Referring to withdrawn forecasts, he said, "If you take into account this uncertain world and you can't guide anybody to a number, it's safer not to guide." Wall Street is expecting net profit for companies in the S&P 500 index to grow at an average 5.1% per quarter through April through December, versus a growth rate of 11.7% a year earlier, according to data compiled by LSEG. Automakers, airlines and consumer goods importers have been among the worst hit. Levies on raw material costs and parts including aluminum and electronics have risen, and tariffs on multiple countries are making assembling cars more expensive because of far-flung supply chains. Moving any production to the United States will also raise labor costs. Kleenex tissue maker Kimberly Clark slashed its annual profit forecast last month and said it would incur about $300 million in costs this year as tariffs push up its supply-chain costs. A few days later the company said it would invest $2 billion over five years to expand its manufacturing capacity in the U.S., a number not included in the Reuters tally. Companies including Apple and Eli Lilly have this year announced investments in the United States. Johnnie Walker whiskey and Don Julio tequila maker Diageo said earlier this month it would cut $500 million in costs and make substantial asset disposals by 2028, as a 10% tariff on imports from places like Britain and the European Union is expected to deal a $150 million hit to its operating profit every year. "Tariffs could significantly drive up the cost of a nice night out - or even a cozy night in," said Zak Stambor, analyst with eMarketer. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Time of India
3 days ago
- Business
- Time of India
Trump's tariff war: How China is preparing for a long-haul battle
(File photo) A federal court may have thrown a wrench into Donald Trump's latest trade manoeuvres, but Beijing is reading between the lines and preparing for war. Not with missiles, but with microchips, emergency planning, and a sharp eye on Washington's next move. As the US president pushes ahead with his hardline tariff agenda, only temporarily paused and now legally challenged, China's leadership is bracing for a protracted economic confrontation. From official Communist Party journals to Chinese economists, the message from Beijing is clear: this fight isn't over, and it won't be short. A three-judge panel of the US Court of International Trade ruled that Trump's use of the 1977 International Emergency Economic Powers Act (IEEPA) to impose punitive tariffs, up to 50 per cent on nations with trade surpluses and 10 per cent on others, exceeded the executive's mandate. The court combined two lawsuits from US businesses and state governments, and while it upheld some tariffs imposed under other statutes, it struck down those relying on IEEPA. Despite the temporary truce and a 90-day pause on the more aggressive 'reciprocal' tariffs, the Trump administration has already appealed the ruling. Trade expert Wendy Cutler said the ruling 'throws the president's trade policy into turmoil.' by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Unglaublich: Der Rechner zeigt sofort den Wert Ihres Hauses an [schauen Sie sich das an]! Hauswert Undo Speaking to the SCMP, she added, 'Partners negotiating hard during the 90-day tariff pause period may be tempted to hold off making further concessions to the US until there is more legal clarity.' 'Resolving trade issues won't happen overnight' In response to Washington's shifting trade posture, China's top Communist Party journal, Qiushi, issued a pointed message on the eve of new US curbs targeting China's semiconductor and education sectors. In a commentary reviewed by the South China Morning Post (SCMP), the journal warned of an even more hostile global environment and urged Chinese policymakers to prepare for long-term confrontation. 'The US turned away from the negotiating table and immediately intensified its pressure on China's semiconductor industry,' it said. 'This shows that resolving trade issues won't happen overnight.' Beijing is being urged to prepare contingency measures in the face of sustained pressure. 'With solid fundamentals, strong resilience, and rich experience in macroeconomic management and trade frictions, China... has the confidence and capacity to tackle current economic challenges,' the commentary added. Ding Shuang, chief economist for Greater China at Standard Chartered, echoed the sentiment, saying Beijing has been operating under worst-case planning since early this year. 'It was expected that the US would not ease restrictions on China,' he told SCMP. 'If Sino-US trade frictions re-escalate... additional stimulus measures may be introduced.' 'Trump switches 'gloves' depending on situation' Even before the court's decision, Chinese scholars were already warning of the need to brace for a new phase in Washington's tactics. Wu Xinbo, dean of Fudan University's Institute of International Studies, told SCMP that while Trump may continue using tariffs, 'he would definitely exercise more restraint going forward, avoiding the extremes seen in the first phase.' Wu cautioned that Trump may now pivot to using pressure tools in science, diplomacy and security, particularly as previous tariffs showed limited effect on China but significant domestic fallout in the US, as detailed by Washington revoking Visa's for Chinese students. In a potential shift of personnel, Wu speculated that Trump might again empower hardliners like Peter Navarro or Stephen Miran to lead negotiations—figures associated with more aggressive strategies and decoupling from China. For now, Treasury Secretary Scott Bessent, seen as a pragmatist, is steering talks. 'Trump switches 'gloves' depending on the situation,' Wu said. 'This is one of his signature tactics.'
