Top executives from major US companies are sounding alarms regarding the challenges posed by tariffs on their businesses and the economy at large. Firms including tech giant Intel, footwear brand Skechers, and consumer goods titan Procter & Gamble (P&G) have recently warned investors about reduced profit forecasts due to ongoing economic uncertainties.
President Donald Trump has been implementing hefty tariffs to negotiate better trade terms with leading global partners. Despite the pressure, no new trade deals have emerged yet, though talks with South Korea are reportedly showing progress.
"As trade policies remain unpredictable, the likelihood of an economic slowdown is increasing," noted Intel's CFO David Zinsner during a recent investor call. Following his comments, Intel’s stocks plummeted by over 5%.
Skechers also faced investor disappointment as it withdrew its yearly forecast, with COO David Weinberg remarking on the unpredictable nature of the current economic climate. The company's reliance on Asian manufacturing, especially from China, continues to be a significant concern.
Meanwhile, P&G shared insights about rising costs of materials due to tariffs, leading to potential price hikes for popular consumer products. Andre Schulten, P&G's financial chief, indicated that company sales growth would likely be below prior expectations due to these challenges.
As these firms join numerous others in highlighting tariff impacts, there are glimmers of hope with recent negotiations between US and South Korean officials, hinting at a potential resolution to the tariff issues. With a deadline for tariff adjustments approaching, both sides are eager to reach a favorable agreement.
