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.
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.
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.
Source: Globalbankingandfinance