Written by Sayantani Ghosh, David Javin, Erban Variziz
San Francisco/New York/Bengaluru (Reuters) -The Trade War Donald Trump cost companies with more than $ 34 billion of lost sales and high costs, according to Reuters analysis for companies, which is expected to rise with continuous uncertainty in targeting tensions in decision -making in the largest companies in the world.
Throughout the United States, Asia and Europe, companies including Apple, Ford, Porsche and Sony have withdrawn or reduced profit forecasts, and an overwhelming majority says that the wrong nature of Trump’s commercial policies made it impossible to accurately estimate costs. Reuters reviewed the company’s data, organizational playgrounds, conferences and media summons to collect them for the first time a snapshot of the tariff so far for international companies.
The amount of $ 33 billion is the total estimates of 32 companies in the S&P 500 indicators, and three companies from Stox 600 and 21 companies in Japanese Nikkei 225 indicators. Economists say that the cost that companies deal with will be likely to be several times what companies have revealed so far.
“You can double or three times your balance and we still say … the size must be much larger than most people realize,” said Jeffrey Sunfield, a professor at Yale School for Administration.
He added that the effects of ripples may be worse, noting that spending from consumers and companies has decreased, and high inflation expectations.
Although a temporary interruption in the American hostility of the American Suno has made some satisfaction and Trump has retracted the tariff threats against Europe, it is still unclear how the final commercial deals will look. On Wednesday, the American Trade Court prevented Trump’s tariff from entering into force. In this environment, strategic experts say companies will look forward to strengthening supply chains, enhancing efforts close to weighting, and setting the priorities of new markets – all will increase costs.
The companies themselves are not sure of the final cost. With the corporate profit season approaching, Reuters found that at least 42 companies have reduced their expectations and 16 have withdrawn or stopped their instructions. For example, earlier this month, Walmart refused to provide quarterly profit expectations and said it would raise prices and attract reprimand from Trump. Volvo Cars, one of the European car manufacturers exposed to US tariffs, withdrew its profit expectations for the next two years, and United Airlines provided different predictions, saying that it was impossible to predict the total environment this year.
Trump has argued that the customs tariff will reduce the trade deficit of America and push companies to transfer operations to the country, restoring jobs to the homeland. Trump said that the customs tariff will force countries including Mexico to stop the flow of illegal immigrants and drugs to the United States.
“The administration has constantly confirmed that the United States … has influence to make our commercial partners eventually bear the cost of definitions,” said White House spokesman Kush Disi.
Introductory Hadith
In profit conference calls for the quarter from January to March, 360 companies, or 72 %, in the aforementioned S&P 500 index, up from 150 companies, or 30 %, in the previous quarter. Executive managers in 219 companies listed on the mentioned Stoxx 600 definitions, compared to 161 in the previous quarter. From Nikkei 225 companies in Japan, this was 58, an increase of 12 before.
“I don’t think companies have a lot of vision about anything in the future,” said Rich Bernstein, CEO of Richard Bernstein Adviss. In reference to the withdrawn expectations, he said: “If you take into account this unconfirmed world and you can not direct anyone to a number, it is safer not to guide.”
Wall Street expects a net profit for companies in the S&P 500 index with an average of 5.1 % in the quarter in April to December, compared to a growth rate of 11.7 % in the previous year, according to the data collected by LSEG.
Automobile manufacturers, airlines and consumer importers were among the worst. The fees have increased on the costs of raw materials and spare parts, including aluminum and electronics, and make customs tariffs in multiple countries to collect cars more expensive due to distant supply chains. The transfer of any production to the United States will also increase the costs of employment.
Klenex Tissue, Kimberly Clarak, reduced its annual profit expectations last month, and said it would bear about $ 300 million in costs this year as definitions pay the supply chain costs. A few days later, the company said it would invest two billion dollars over a five -year period to expand its manufacturing ability in the United States, a number not listed in Reuters. Companies, including Apple and Eli Lilly, announced this year of investments in the United States.
Johnio Walker and Don Julio Tequila Diaageo said earlier this month that it would reduce $ 500 million of costs and achieve great behavior in assets by 2028, where the tariff is expected to deal by 10 % on places like Britain and the European Union to $ 150 million for his success every year.
“The definitions can increase significantly from the cost of a nice night – or even a comfortable night in,” said Zach Stambur, an analyst at Emarkter.
(Ricor by Sayantanni Ghosh in San Francisco, RainPora Varghes in the West, Divid Goffen in New York; Sinabur;
