High-profile executives from companies like Intel, Skechers, and Procter & Gamble are voicing alarm over the negative impacts of tariffs on their operations, revealing fears of a potential economic downturn.
US Executives Raise Alarms Over Tariff-Driven Economic Anxiety
US Executives Raise Alarms Over Tariff-Driven Economic Anxiety
Key leaders from major US firms express concerns over tariffs' effects on business forecasts and the economy.
Top executives from renowned US companies are sounding warnings regarding the implications of tariffs on their businesses and the broader economic landscape. Industry giants such as Intel, Skechers, and Procter & Gamble have either slashed their profit estimates or completely withdrawn them amidst escalating economic volatility.
In an effort to recalibrate trade dynamics with vital international partners, President Donald Trump has implemented high tariffs in hopes of encouraging negotiations. However, there have been no new trade agreements finalized, although discussions with South Korea have shown some progress recently.
During an investors’ briefing, Intel’s CFO, David Zinsner, expressed concerns about unpredictable trade policies contributing to an economic slowdown and possibly heralding a recession. He stated, "We will certainly see costs increase," following the company’s dismal profit forecasts. Consequently, Intel's stock tumbled by over 5% during after-hours trading in response to these announcements.
Skechers has similarly alarmed investors, retracting its annual sales forecast. COO David Weinberg shared that the current climate is "too dynamic from which to plan results with reasonable assurance." This is of particular concern as Skechers, along with other footwear companies like Nike, Adidas, and Puma, relies on manufacturing in Asia, especially China.
Procter & Gamble is also adjusting its strategies in light of increased material costs due to tariffs, hinting at possible price hikes for products like Ariel and Gillette. P&G's financial chief, Andre Schulten, mentioned, “We’ll be looking for every opportunity to mitigate the impact... There will be adjustments to some level of consumer pricing.”
These statements reflect a growing trend among corporations worldwide cautioning about the repercussions of new tariff policies. As these discussions unfold, tentative optimism has emerged from ongoing negotiations between US and South Korean trade officials, where Treasury Secretary Scott Bessent described the talks as "very successful." The two parties appear to be preparing for further technical discussions as the expiration of a 90-day tariff pause looms on July 8.
While many nations have signaled a desire to negotiate since these tariffs were imposed, the path to ensure a stable trade environment remains highly uncertain.
