Trump tariffs draw warnings from big companies about price, revenue shifts
The impact from tariffs has so far been most immediately felt in financial markets, with stocks erasing nearly a year’s worth of gains amid fears of an economic growth slowdown or outright recession.
The impact from tariffs has so far been most immediately felt in financial markets, with stocks erasing nearly a year’s worth of gains amid fears of an economic growth slowdown or outright recession.
Now, companies are starting to issue more concrete warnings about the impact that tariffs could have on their bottom lines — and on consumers.
Executives at PepsiCo, whose first-quarter earnings missed analysts’ projections, flagged supply chain disruptions and increased costs. The food and beverage giant also lowered its forecast for core constant currency earnings per share — a metric that accounts for foreign currency movements — citing the impact of tariffs and more value-conscious consumers.
“As we look ahead, we expect more volatility and uncertainty, particularly related to global trade developments, which we expect will increase our supply chain costs,” CEO Ramon Laguarta said. “At the same time, consumer conditions in many markets remain subdued and similarly have an uncertain outlook.”
Procter & Gamble’s quarterly earnings beat estimates, but sales slid below expectations. Executives also slashed their full-year forecast for core earnings per share, pointing to both weaker consumer demand and direct effects from President Donald Trump’s tariffs on the company’s operations.
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