Key Points
- Companies have lost $34 billion from tariffs imposed during Trump’s trade war.
- Apple, Ford, Walmart, and other major firms have cut or withdrawn profit forecasts.
- Economists say the actual cost could be two to three times higher than disclosed.
- 72% of S&P 500 companies discussed tariffs in their latest earnings calls. Many businesses are restructuring supply chains and increasing U.S. investments.
President Donald Trump’s trade war has already cost companies over $34 billion in lost sales and higher expenses, according to a detailed Reuters analysis of corporate disclosures. As uncertainty over tariff policies continues, the financial impact on businesses is expected to grow.
Firms across the United States, Europe, and Asia, including industry giants such as Apple, Ford, Porsche, and Sony, have either reduced or withdrawn their profit forecasts, citing the unpredictability of U.S. trade policy.
The $34 billion estimate includes data from 32 S&P 500 companies, 3 from Europe’s STOXX 600, and 21 from Japan’s Nikkei 225. However, economists warn that the actual damage is likely two to three times higher once indirect effects, such as lower consumer spending and inflation, are factored in.
Despite a temporary pause in U.S.-China trade tensions and a U.S. court blocking some tariffs, the future of international trade remains highly uncertain. Many companies have begun to restructure supply chains, invest in domestic production, and explore new markets, actions that increase operational costs.
At least 42 companies have already cut forecasts, and 16 have suspended guidance altogether. Major firms, such as Walmart, have warned of rising prices, while Volvo Cars and United Airlines declined to provide reliable earnings projections, citing an unpredictable economic climate.
The White House argues that tariffs are designed to reduce the trade deficit, bring manufacturing back to the U.S., and pressure countries like Mexico on immigration issues. However, industry data paints a grimmer picture: in recent earnings calls, 72% of S&P 500 companies discussed tariffs, up from 30% in the previous quarter.
Sectors most impacted include automakers, airlines, and consumer goods manufacturers. For example, Kimberly-Clark anticipates $300 million in tariff-related costs this year, and Diageo expects a $150 million annual hit due to U.S. import duties.
