As US companies struggle to cope with the mounting impact of tariffs, corporate leaders are sounding the alarm on economic uncertainty and potential price hikes for consumers.
The impact of tariffs on US companies is becoming increasingly evident, with several top firms cutting their profit forecasts or withdrawing them due to economic uncertainty. The situation is being closely watched by investors and analysts alike.
US President Donald Trump‘s trade policies have been a major factor in the recent economic uncertainty. The use of steep tariffs has been intended to bring key trading partners to the negotiating table, but so far, no new trade agreements have been announced. Talks with South Korea have shown signs of progress, however.
The technology industry is already feeling the effects of the tariffs. Intel, a leading technology giant, has cut its profit forecasts and withdrawn them citing economic uncertainty. The company’s shares dropped by more than 5% in extended trading after the announcement. Skechers, another well-known firm, also disappointed investors with its gloomy profit and revenue forecasts.
The impact of tariffs on consumer prices is a growing concern for companies like Procter & Gamble. The maker of Ariel, Head & Shoulders, and Gillette said it was considering changes to its prices to make up for the extra cost of materials sourced from China and other places. This move is aimed at mitigating the impact of the tariffs on consumer pricing.
The situation is not unique to US companies. A growing list of examples around the world have warned about the impact of ‘Trump’s trade policies’ . The 90-day pause on higher tariffs affecting dozens of countries is set to expire on July 8, and there are indications that talks between the US and South Korea may be moving forward.
While no new trade agreements have been announced yet, there are signs of progress in talks with South Korea. The US Treasury Secretary Scott Bessent described the meeting as ‘very successful,’ while South Korea’s industry minister echoed his optimism about reaching a July package.
