US company leaders are increasingly voicing their concerns regarding the adverse effects of tariffs on both their businesses and the overall economy. Prominent firms such as Intel, Skechers, and Procter & Gamble have either lowered their profit forecasts or altogether retracted them, attributing their decisions to a prevailing climate of economic uncertainty. This situation follows efforts by President Donald Trump, who has employed significant tariffs in an attempt to recalibrate trade relations with vital partners, although no new trade deals have surfaced thus far.
Intel's CFO, David Zinsner, highlighted the heightened risk of an economic downturn, stating, "The very fluid trade policies in the US and beyond... have increased the chance of an economic slowdown." The technology firm saw its shares plunge by over 5% in after-hours trading following this announcement of dismal revenue predictions. Skechers similarly faced backlash from investors, withdrawing its annual forecasts, as COO David Weinberg remarked, “The current environment is simply too dynamic from which to plan results with a reasonable assurance of success.” Some of Skechers’ production takes place in Asia, particularly China, placing them alongside brands like Nike and Adidas that are similarly affected.
Moreover, Procter & Gamble executives indicated potential price increases for their products as a means to offset heightened material costs due to tariffs, projecting slower sales growth than initially anticipated. Financial chief Andre Schulten stated that the company will explore every possible avenue to lessen the tariffs' impact, even if it means adjusting prices for consumers.
These companies are not alone; many others worldwide have reported similar fears related to the repercussions of Trump's trade policies. In the midst of these developments, there appears to be progress in US-South Korean trade negotiations, with Treasury Secretary Scott Bessent reporting a successful meeting aimed at alleviating tariffs. Both sides are reportedly working toward finalizing a "July package," as the pause on increased tariffs is set to end on July 8, prompting a sense of urgency in negotiations. With over 70 countries reportedly reaching out to commence trade talks, the ramifications of tariffs will remain a key concern for the global business community.
Intel's CFO, David Zinsner, highlighted the heightened risk of an economic downturn, stating, "The very fluid trade policies in the US and beyond... have increased the chance of an economic slowdown." The technology firm saw its shares plunge by over 5% in after-hours trading following this announcement of dismal revenue predictions. Skechers similarly faced backlash from investors, withdrawing its annual forecasts, as COO David Weinberg remarked, “The current environment is simply too dynamic from which to plan results with a reasonable assurance of success.” Some of Skechers’ production takes place in Asia, particularly China, placing them alongside brands like Nike and Adidas that are similarly affected.
Moreover, Procter & Gamble executives indicated potential price increases for their products as a means to offset heightened material costs due to tariffs, projecting slower sales growth than initially anticipated. Financial chief Andre Schulten stated that the company will explore every possible avenue to lessen the tariffs' impact, even if it means adjusting prices for consumers.
These companies are not alone; many others worldwide have reported similar fears related to the repercussions of Trump's trade policies. In the midst of these developments, there appears to be progress in US-South Korean trade negotiations, with Treasury Secretary Scott Bessent reporting a successful meeting aimed at alleviating tariffs. Both sides are reportedly working toward finalizing a "July package," as the pause on increased tariffs is set to end on July 8, prompting a sense of urgency in negotiations. With over 70 countries reportedly reaching out to commence trade talks, the ramifications of tariffs will remain a key concern for the global business community.
