Executives from notable US firms are sounding alarms over the detrimental impact of tariffs imposed by President Trump's administration. Companies like Intel have cut their profit forecasts amidst mounting economic uncertainty, while Skechers and Procter & Gamble are grappling with potential price increases for consumers. Despite the challenges, there are signs of progress in trade discussions with South Korea aimed at reducing tariffs.
US Executives Express Concerns Over Tariffs and Economic Uncertainty
US Executives Express Concerns Over Tariffs and Economic Uncertainty
Leaders from major US companies, including Intel, Skechers, and Procter & Gamble, warn of the negative effects of tariffs on their profits and the broader economy.
Top executives from several prominent US companies are voicing serious concerns regarding the implications of tariffs on their businesses and the greater economic landscape. Major industry players such as technology leader Intel, footwear manufacturer Skechers, and consumer goods giant Procter & Gamble have either adjusted or withdrawn their profit projections, attributing these actions to prevailing economic uncertainties.
President Trump has implemented significant tariffs with the intent of recalibrating trade relations with key global partners. While no new trade agreements have materialized following these measures, recent discussions with South Korea have shown potential for progress.
During an investor call, Intel's Chief Financial Officer, David Zinsner, stated, "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 recession growing." His comments led to a notable dip in Intel's shares, which fell over 5% in after-hours trading.
Similarly, Skechers faced investor disappointment when it retracted its annual results forecast, with COO David Weinberg explaining that the current, unpredictable environment posed challenges for making accurate projections. The company, like others in the footwear sector including Nike and Adidas, relies heavily on manufacturing in Asian countries, particularly China.
Procter & Gamble also indicated that ongoing tariffs could translate into higher consumer prices. The producer of well-known brands such as Ariel and Gillette is weighing its options for adjusting prices to offset increased costs from materials sourced internationally. Andre Schulten, the firm’s Chief Financial Officer, noted, “We’ll be looking for every opportunity to mitigate the impact,” while hinting at potential adjustments that could affect consumer pricing.
These companies join a growing cohort of global businesses cautioning about the repercussions of Trump's trade policies. Nonetheless, there are flickers of optimism. Recent meetings between US and South Korean trade officials in Washington, which aimed to address tariff concerns, have been characterized by U.S. Treasury Secretary Scott Bessent as "very successful," suggesting that discussions could intensify in the coming weeks.
As the 90-day suspension on higher tariffs affecting numerous countries approaches its expiration on July 8, President Trump mentioned that over 70 nations have reached out regarding the start of negotiations since the implementation of the tariffs.
