US Executives Raise Alarm Over Tariff Effects on Business

Executives from major US companies are sounding the alarm on the detrimental effects of tariffs, signaling potential economic downturns and increased costs as trade negotiations remain unresolved.

Executives from prominent US companies have voiced significant concerns regarding the impacts of tariffs on their operations and the broader economic landscape. Esteemed firms including Intel, Skechers, and Procter & Gamble are pulling back on profit forecasts, spotlighting economic uncertainty due to the increasing tariffs imposed by the US government.

With President Trump aiming to recalibrate trade ties with major partners through aggressive tariff applications, the situation remains unresolved as no new trade agreements have emerged. However, there seem to be positive developments in negotiations with South Korea.

David Zinsner, CFO of Intel, acknowledged during a recent investor call that the unpredictable trade policies are amplifying the risks of an economic downturn. "We face a growing likelihood of recession," Zinsner remarked, noting that the company's profit outlook would face downward revisions, triggering a decline in Intel's shares of over 5% after these statements.

Skechers, known for its footwear products, has also joined the list of companies adjusting expectations, with COO David Weinberg noting, "The current environment is simply too dynamic to plan results with reasonable assurance of success,” leading to a withdrawal of annual profit forecasts.

Consumer goods giant Procter & Gamble, the manufacturer behind brands such as Ariel and Gillette, indicated that tariffs may compel them to increase prices for customers. Andre Schulten, P&G's financial chief, remarked that they are actively seeking ways to lessen the adverse impact on pricing, while also revising sales growth predictions downward for the year.

The cumulative warnings from these and other firms underscore the broadening effects of the current trade policies championed by Trump. Efforts to negotiate relief from tariffs are underway, with recent discussions between US and South Korean officials yielding optimistic feedback. Treasury Secretary Scott Bessent indicated that progress may lead to concrete terms being outlined soon.

This trade landscape continues to evolve, with over 70 countries reportedly reaching out for negotiations since the implementation of the tariffs, showcasing the widening ramifications of the US's current trade strategy.

Tags: International Business, Tariffs, Intel, Trump, Procter & Gamble