Several prominent US companies are voicing their concerns over the adverse effects that tariffs are inflicting on their operations and the broader economy. Corporations including tech leader Intel, footwear manufacturer Skechers, and household products giant Procter & Gamble have either revised down their profit expectations or retracted them altogether, citing a challenging economic landscape.
President Donald Trump has sought to renegotiate trade dynamics with key partners by imposing high tariffs, yet no new trade agreements with other nations have been finalized at this point. However, there have been hints of progress in negotiations with South Korea regarding tariff adjustments.
David Zinsner, Intel's Chief Financial Officer, stated during an investors' call, "The shifting trade policies in the US and globally, along with regulatory risks, elevate the risk of an economic downturn, increasing the likelihood of a recession." He projected that the costs for Intel would rise, contributing to pessimistic profit forecasts. Following these statements, Intel's stock fell over 5% in after-hours trading.
Similarly, Skechers encountered investor disappointment as it withdrew its annual guidance due to the excessively unpredictable business environment. Skechers' COO, David Weinberg, remarked, "The current market conditions simply don't allow us to plan results with reasonable confidence," prompting shares to drop.
Procter & Gamble executives also emphasized the influence of tariffs, indicating that prices for products like Ariel, Gillette, and Head & Shoulders might need to be reevaluated to accommodate rising costs linked to materials imported from China and elsewhere. They have adjusted their sales growth expectations for the year downwards, with P&G's financial head, Andre Schulten, stating, "We will explore every opportunity to lessen the impact while preparing for price adjustments."
These narratives reinforce the growing concern among businesses worldwide regarding the ramifications of Trump’s trade policies. Meanwhile, discussions between US and South Korean trade officials on Thursday showed promising signs towards tariff elimination. US Treasury Secretary Scott Bessent reported a "very successful" meeting, suggesting that negotiations might be progressing more quickly than anticipated, with technical discussions potentially commencing as early as next week. South Korea's Industry Minister, Ahn Duk-geun, mirrored this optimism, hinting at the possibility of a comprehensive agreement package by July.
As the clock ticks down to the expiration of a temporary 90-day freeze on increased tariffs affecting numerous countries on July 8, over 70 nations have approached the US, expressing interest in initiating negotiations since tariffs were first implemented.
President Donald Trump has sought to renegotiate trade dynamics with key partners by imposing high tariffs, yet no new trade agreements with other nations have been finalized at this point. However, there have been hints of progress in negotiations with South Korea regarding tariff adjustments.
David Zinsner, Intel's Chief Financial Officer, stated during an investors' call, "The shifting trade policies in the US and globally, along with regulatory risks, elevate the risk of an economic downturn, increasing the likelihood of a recession." He projected that the costs for Intel would rise, contributing to pessimistic profit forecasts. Following these statements, Intel's stock fell over 5% in after-hours trading.
Similarly, Skechers encountered investor disappointment as it withdrew its annual guidance due to the excessively unpredictable business environment. Skechers' COO, David Weinberg, remarked, "The current market conditions simply don't allow us to plan results with reasonable confidence," prompting shares to drop.
Procter & Gamble executives also emphasized the influence of tariffs, indicating that prices for products like Ariel, Gillette, and Head & Shoulders might need to be reevaluated to accommodate rising costs linked to materials imported from China and elsewhere. They have adjusted their sales growth expectations for the year downwards, with P&G's financial head, Andre Schulten, stating, "We will explore every opportunity to lessen the impact while preparing for price adjustments."
These narratives reinforce the growing concern among businesses worldwide regarding the ramifications of Trump’s trade policies. Meanwhile, discussions between US and South Korean trade officials on Thursday showed promising signs towards tariff elimination. US Treasury Secretary Scott Bessent reported a "very successful" meeting, suggesting that negotiations might be progressing more quickly than anticipated, with technical discussions potentially commencing as early as next week. South Korea's Industry Minister, Ahn Duk-geun, mirrored this optimism, hinting at the possibility of a comprehensive agreement package by July.
As the clock ticks down to the expiration of a temporary 90-day freeze on increased tariffs affecting numerous countries on July 8, over 70 nations have approached the US, expressing interest in initiating negotiations since tariffs were first implemented.
