Executives from Intel, Skechers, and Procter & Gamble express rising uncertainties over tariffs, hinting at potential economic slowdown and higher consumer prices.
Economic Uncertainty Looms as U.S. Executives Voice Concerns Over Tariff Impact
Economic Uncertainty Looms as U.S. Executives Voice Concerns Over Tariff Impact
Major U.S. firms adjust profit forecasts amidst tariff-induced pressures.
As trade tensions continue to unfold, executives from top U.S. companies are vocalizing their worries over the severe impact of tariffs on their businesses and the economy as a whole. Leaders from renowned firms including technology giant Intel, footwear manufacturer Skechers, and consumer goods powerhouse Procter & Gamble have all recently reduced or withdrawn profit forecasts, citing an unpredictable economic landscape.
President Donald Trump's strategy to recalibrate trade relationships through significant tariffs may be creating more anxiety than anticipated. Although no significant trade agreements have yet materialized, positive interactions between U.S. and South Korean trade officials earlier this week hinted at possible future developments.
Intel's Chief Financial Officer David Zinsner noted during an investor call that the “fluid trade policies” are increasing the likelihood of an economic downturn and recession. Following this announcement, Intel's stock experienced a notable decline of over 5%.
Similarly, Skechers reported disappointing outcomes and withdrew its annual projections, with COO David Weinberg stating that "the current environment is simply too dynamic" to provide reliable forecasts. The company's operations largely rely on manufacturing processes located in Asia, particularly China, which have been adversely affected by tariffs.
On the consumer goods front, Procter & Gamble's executives acknowledged that tariffs could result in the necessity for price adjustments on popular products like Ariel and Gillette, prompting the company to revise its sales growth expectations downwards. Andre Schulten, P&G’s financial chief, confirmed they are actively seeking ways to mitigate these rising costs while preparing for potential adjustments to consumer pricing.
These concerns echo a broader trend among global companies facing the ramifications of the current trade policies. In a backdrop of uncertainty, recent diplomatic talks between U.S. and South Korean officials have hinted at a possible thawing in relations, with U.S. Treasury Secretary Scott Bessent describing their discussions as "very successful." With a pause on higher tariffs due to expire soon, the stakes remain high in this ongoing trade saga.
President Donald Trump's strategy to recalibrate trade relationships through significant tariffs may be creating more anxiety than anticipated. Although no significant trade agreements have yet materialized, positive interactions between U.S. and South Korean trade officials earlier this week hinted at possible future developments.
Intel's Chief Financial Officer David Zinsner noted during an investor call that the “fluid trade policies” are increasing the likelihood of an economic downturn and recession. Following this announcement, Intel's stock experienced a notable decline of over 5%.
Similarly, Skechers reported disappointing outcomes and withdrew its annual projections, with COO David Weinberg stating that "the current environment is simply too dynamic" to provide reliable forecasts. The company's operations largely rely on manufacturing processes located in Asia, particularly China, which have been adversely affected by tariffs.
On the consumer goods front, Procter & Gamble's executives acknowledged that tariffs could result in the necessity for price adjustments on popular products like Ariel and Gillette, prompting the company to revise its sales growth expectations downwards. Andre Schulten, P&G’s financial chief, confirmed they are actively seeking ways to mitigate these rising costs while preparing for potential adjustments to consumer pricing.
These concerns echo a broader trend among global companies facing the ramifications of the current trade policies. In a backdrop of uncertainty, recent diplomatic talks between U.S. and South Korean officials have hinted at a possible thawing in relations, with U.S. Treasury Secretary Scott Bessent describing their discussions as "very successful." With a pause on higher tariffs due to expire soon, the stakes remain high in this ongoing trade saga.
