Tariffs trigger $34 (CAD 47) billion hit to global giants' bottom line
Global companies have reported losses exceeding $34 (CAD 47) billion due to tariffs imposed by the U.S. Rising costs and declining sales are the main contributors to these losses, according to an analysis by Reuters.
Reuters analyzed the impact of tariffs imposed by the Trump administration on 32 companies from the S&P 500 index, three from the Stoxx 600, and 21 from the Nikkei 225.
The results indicate significant financial losses, which are a result of unpredictable U.S. trade policy. Many companies are unable to accurately estimate their losses.
At least 42 companies have lowered their profit forecasts, and 16 of them have withdrawn reports or postponed their publication dates.
For example, Walmart has decided not to give quarterly profit forecasts, and Volvo does not plan to publish forecasts for the next two years. United Airlines has prepared two different reports, highlighting macroeconomic uncertainty.
Although the White House claims that tariffs have brought $50-60 (CAD 69-83) billion in revenue to the American economy, a federal court has deemed them illegal. However, an appeal upheld their enforcement. The tariffs affect products from China, Canada, and Mexico.
