Global companies have hit the US duties. Reduce costs and cut off forecasts

General Motors, Kraft Heinz and Electrolux joined the list of companies that withdrew forecasts for 2025 or reduced perspectives for results in connection with the uncertainty around US tariffs to import. According to analysts, further difficulties in companies can be expected.


“We believe that the upcoming influence of tariffs can be significant. We tell everyone not to rely on earlier guidelines and update information when we have more information about customs,” said Paul Jacobson, financial director of the GM, in an interview with the media after the American car manufacturer withdrew his financial forecast for this year.
According to Reuters's analysis, about 40 large corporations around the world have withdrawn or reduced their forecasts for the future in the first two weeks of the results season for the first quarter. GM and Volvo Cars withdrew their forecasts on Tuesday, joining the American airline Delta, a manufacturer of computer equipment Logitech and a giant Diageo drinks.
In turn, the producer Keczup Kraft Heinz reduced its annual results forecast, the Hilton hotel operator reduced the growth forecast of revenues in 2025, and Porsche and Electrolux reduced their forecasts all year round. Nestle, Unilever and Chipotle blamed the weaker mood of consumers for deterioration of market perspectives in North America after they did not meet the expectations of the results in the first quarter.
UPS announced that it intends to dismiss 20,000 to reduce costs in the face of an uncertain economic situation and in connection with the expected worse sales results of the company's largest customer, Amazon.
The German manufacturer of sports cars Porsche AG announced that in April and May it suffered a loss of at least EUR 100 million as a result of American import duties.
“There is so much variability, so much information flows, some of which are credible and some do not,” said financial director Jochen Breckner, warning that Porsche will have to transfer tariff costs to customers through price increases.
“Undoubtedly, the uncertainty about what exactly can happen with the demand is as high as never before,” said Ryan Detrick, the main market strategist of the Carson Group, predicting that more companies will suspend or withdraw forecast.
According to Apollo Global Management, the economic effects of tariffs imposed by Trump's administration will soon become obvious to average Americans and lead to recession in the USA this summer.
Torsten Slok, the chief economist in Apollo, presented a schedule in a presentation for clients, which shows when the effects of tariffs announced by President Donald Trump can hit the US economy. According to the report, based on the transport time of goods from China, American consumers may begin to notice shortages related to trade in their local stores next month.
“The consequence will be empty shelves in American stores in a few weeks and deficiencies similar to those from the Covid -19 pandemic times for consumers and companies using Chinese products as indirect goods,” Salok wrote in the report.
The Port Los Angeles company said that the volume of transport of goods from China will fall by 35 percent. next week.
“This is a sharp decline in the volume, because many large American retail sellers have suspended all deliveries from China because of the tariffs,” said Gene Seroka, executive director of the port of Los Angeles.
Seroka expects that with a reduction in the number of goods, in May the number of ships arriving at the port will decrease by about a quarter. Deliveries from China account for about 45 percent. port turnover.
On Tuesday, the index of the trust of American consumers fell to 86 points in April. from 93.9 points A month earlier, after correction. This is the lowest index reading since October 2011.
“Three elements of expectations, i.e. conditions for conducting business activity, employment prospects and future income, have deteriorated rapidly, reflecting the common pessimism about the future,” said Stephanie Guicard, senior economist Conference Board. (PAP Biznes)
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