Top executives from several prominent US firms are openly voicing their apprehension regarding the adverse effects of tariffs on their operations and the broader economy. Technology powerhouse Intel, popular footwear brand Skechers, and consumer goods giant Procter & Gamble have either slashed their profit projections or opted not to provide forecasts amid ongoing economic instability.
President Donald Trump has utilized aggressive tariffs as a strategy to renegotiate trade agreements with essential partners, although no new agreements have been finalized yet. Progress has been reported in discussions with South Korea, suggesting possible future developments.
Intel's chief financial officer, David Zinsner, conveyed concerns during a recent earnings call, stating, "The very fluid trade policies in the US and beyond, as well as regulatory risks, have increased the chance of an economic slowdown with the probability of a recession growing." Zinsner further warned of anticipated increases in costs, prompting a significant drop in Intel's stock by over 5% following the announcement.
Skechers also faced backlash from investors after retracting its annual profits forecast. The company's chief operating officer, David Weinberg, remarked, "The current environment is simply too dynamic from which to plan results with a reasonable assurance of success." The brand, which like Nike and Adidas relies heavily on manufacturing in Asia, particularly China, is navigating an unpredictable landscape.
Procter & Gamble executives hinted that rising tariffs may lead to price hikes for their widely known products, including Ariel and Gillette. Financial chief Andre Schulten stated, "We'll be looking for every opportunity to mitigate the impact," noting that some consumer prices may have to adjust to manage increased costs of imported materials.
These expressions of concern are in line with a growing number of global companies addressing the repercussions of Trump's trade policies. On a positive note, discussions between US and South Korean trade officials in Washington DC have indicated a successful dialogue, with Treasury Secretary Scott Bessent informing reporters that the two nations may soon engage in more technical discussions about tariffs, aimed at finding a resolution.
As the deadline for a temporary freeze on higher tariffs approaches on 8 July, negotiations are expected to intensify, with over 70 countries reportedly eager to initiate conversations following the implementation of the tariffs.
