According to Reuters analysis, The current costs of Trump's duties can be estimated at at least $ 34 billion. and they are still growing. We are talking about lost revenues and higher operating costs of 32 companies from the S&P 500 index, 3 companies from the Stoxx 6000 and 21 index from the Japanese Nikkei225 index.
“You can double or triple this amount, and we would still say that the scale of the phenomenon is much greater than most people are aware” – said Jeffrey Sonnenfeld, Professor Yale School of Management.
He added that side effects can be even worse, citing a potential decrease in consumer and enterprises expenditure and higher inflation expectations.
As the end of the season of publication of financial results, Reuters determined that At least 42 companies have lowered their forecasts, and 16 withdrew or suspended their forecasts. For example, at the beginning of this month, Walmart refused to give a quarterly profit forecast and announced a price increase, which was criticized by Trump. Volvo Cars withdrew the profit forecast for the next two years, and United Airlines gave two different forecasts, claiming that he was unable to predict the macroeconomic situation this year.
During teleconferences regarding financial results for the quarter of January -March 360 companies, i.e. 72 percent. companies from the S&P 500 index mentioned duty, which is an increase compared to 150 companies in the previous quarter. The same with the management of 219 companies listed in the Stoxx 600 and 58 index with Nikkei 225.
Wall Street expects you The net profit from the S&P 500 index companies will increase by an average of 5.1 percent. In each quarter this year, compared to an almost 12 % increase a year earlier.
“Automotive companies, airlines and importers of consumer goods suffered the most. Taxes on the costs of raw materials and parts, including aluminum and electronics, have increased, and customs imposed on many countries mean that the installation of cars is more expensive due to the extensive supply chains, “writes Reuters.
