Unsettled tariff policies and unpredictable trade war is weighing down companies as they try to provide investors with any financial outlooks in the latest financial results.
While some tariffs on key US trading partners remain, others have been temporarily postponed to allow room for negotiations. However, the constantly shifting policies often changing by the day, have left businesses struggling to assess the impact on their costs and revenues.
On Tuesday, US treasury secretary Scott Bessent struck a cautiously optimistic note, saying he expected a “de-escalation” in the trade war with China . However, he also acknowledged that formal negotiations are yet to begin.
Also read: Samsung may shift production to India from Vietnam amidst Trump’s tariff moves
Here’s how some of the biggest companies are handling the uncertainty:
Chipotle
Chipotle Mexican Grill on Wednesday said that the costs are increasing due to the tariffs. The chain sources beef from Australia, avocados from Colombia and Peru and packaging from Vietnam, Indonesia and Thailand. All the materials are now subjected to a 10% tariff.
CFO Adam Rymer warned that tariffs could also drive up the cost of building new restaurants, as its Chinese-sourced equipment and materials would be affected, though the situation with China is still unpredictable.
The food giant reported lower-than-expected revenue for the first quarter and cut its full-year forecast for same-store sales. CEO Scott Boatwright blamed economic anxiety, saying it was the “overwhelming reason” for a decline in customer visits, an issue that has persisted into April.
Tesla
Tesla appears better positioned than many automakers, thanks to its largely domestic production. However, its energy division could take a hit due to reliance on LFP battery cells from China.
The EV manufacturer could also face a major setback, as China being the world's largest electric market has also retaliated against the US.
Earlier this month, Tesla suspended orders for its Model S and X in mainland China, another blow amid potential retaliation from Beijing, the world’s largest EV market.
CEO Elon Musk, a close ally of President Trump, said he still supported “lower tariffs,” calling them a route to prosperity, but acknowledged that trade decisions ultimately lie with the president.
Also read: How Chinese companies are allegedly 'evading' Trump tariffs
Akzo Nobel
Dutch multinational Akzo Nobel said its exposure to US tariffs is limited thanks to years of strategic localisation. CEO Gregoire Poux-Guillaume told analysts, “Over the years, we deliberately localized both our procurement and production in the US.”
“We also largely run China for China and use the rest of Asia instead as an export base.”
The company deals in a range of products, from paints and coatings for the automotive industry to the diy homeowners. However, major tariffs could still hurt businesses and sales.
Boston Scientific
Medical device maker Boston Scientific expects most of the tariff pain to hit later this year, estimating a $200 million impact in 2025. Still, the company raised its earnings and revenue outlook, confident it can absorb the costs through stronger sales and belt-tightening.
With a long-established global supply chain and significant US investment, Boston Scientific said that it was prepared to ride out the storm.
Also read: 'Trump's tariffs could shave off between 0.2-0.5 percentage points from India's GDP growth'
Boeing
Aircraft giant Boeing said most of its supply chain is US-based and that many imports from Canada and Mexico are protected under current trade agreements. Tariffs on other suppliers, including Japan and Italy, are expected to be recoverable, with a net cost of less than $500 million annually.
Yet the aeroplane manufacturer is more concerned about retaliation from key markets, especially China, which has already halted deliveries of its aircraft.
AT&T
Telecoms giant AT&T said it is bracing for potential increases in the cost of mobile phones and network equipment. However, it believes that it can manage the fallout for now, based on the current pause in tariffs and supply chain.
“The magnitude of any increase will depend on a variety of factors, including how much of the tariffs the vendors pass on, the impact that the tariffs have on consumer and business demand,” said CEO John Stankey.
While some tariffs on key US trading partners remain, others have been temporarily postponed to allow room for negotiations. However, the constantly shifting policies often changing by the day, have left businesses struggling to assess the impact on their costs and revenues.
On Tuesday, US treasury secretary Scott Bessent struck a cautiously optimistic note, saying he expected a “de-escalation” in the trade war with China . However, he also acknowledged that formal negotiations are yet to begin.
Also read: Samsung may shift production to India from Vietnam amidst Trump’s tariff moves
Here’s how some of the biggest companies are handling the uncertainty:
Chipotle
Chipotle Mexican Grill on Wednesday said that the costs are increasing due to the tariffs. The chain sources beef from Australia, avocados from Colombia and Peru and packaging from Vietnam, Indonesia and Thailand. All the materials are now subjected to a 10% tariff.
CFO Adam Rymer warned that tariffs could also drive up the cost of building new restaurants, as its Chinese-sourced equipment and materials would be affected, though the situation with China is still unpredictable.
The food giant reported lower-than-expected revenue for the first quarter and cut its full-year forecast for same-store sales. CEO Scott Boatwright blamed economic anxiety, saying it was the “overwhelming reason” for a decline in customer visits, an issue that has persisted into April.
Tesla
Tesla appears better positioned than many automakers, thanks to its largely domestic production. However, its energy division could take a hit due to reliance on LFP battery cells from China.
The EV manufacturer could also face a major setback, as China being the world's largest electric market has also retaliated against the US.
Earlier this month, Tesla suspended orders for its Model S and X in mainland China, another blow amid potential retaliation from Beijing, the world’s largest EV market.
CEO Elon Musk, a close ally of President Trump, said he still supported “lower tariffs,” calling them a route to prosperity, but acknowledged that trade decisions ultimately lie with the president.
Also read: How Chinese companies are allegedly 'evading' Trump tariffs
Akzo Nobel
Dutch multinational Akzo Nobel said its exposure to US tariffs is limited thanks to years of strategic localisation. CEO Gregoire Poux-Guillaume told analysts, “Over the years, we deliberately localized both our procurement and production in the US.”
“We also largely run China for China and use the rest of Asia instead as an export base.”
The company deals in a range of products, from paints and coatings for the automotive industry to the diy homeowners. However, major tariffs could still hurt businesses and sales.
Boston Scientific
Medical device maker Boston Scientific expects most of the tariff pain to hit later this year, estimating a $200 million impact in 2025. Still, the company raised its earnings and revenue outlook, confident it can absorb the costs through stronger sales and belt-tightening.
With a long-established global supply chain and significant US investment, Boston Scientific said that it was prepared to ride out the storm.
Also read: 'Trump's tariffs could shave off between 0.2-0.5 percentage points from India's GDP growth'
Boeing
Aircraft giant Boeing said most of its supply chain is US-based and that many imports from Canada and Mexico are protected under current trade agreements. Tariffs on other suppliers, including Japan and Italy, are expected to be recoverable, with a net cost of less than $500 million annually.
Yet the aeroplane manufacturer is more concerned about retaliation from key markets, especially China, which has already halted deliveries of its aircraft.
AT&T
Telecoms giant AT&T said it is bracing for potential increases in the cost of mobile phones and network equipment. However, it believes that it can manage the fallout for now, based on the current pause in tariffs and supply chain.
“The magnitude of any increase will depend on a variety of factors, including how much of the tariffs the vendors pass on, the impact that the tariffs have on consumer and business demand,” said CEO John Stankey.
You may also like
US asks for home addresses, biometrics of H-1B applicants first time ever: 'Highly unusual'
BSF and Punjab Police recover pistol, heroin and drones in Joint Border Operations
Odisha Police busts racket involved in Navy recruitment scam, three held
Pahalgam terror victim's wife recounts horror of attack, says "We hid behind the washroom..."
Jamie Carragher shares new Ollie Watkins to Arsenal transfer theory - 'They didn't'
