New York, NY – Major U.S. companies are speaking out about the negative impacts of President Donald Trump’s trade policies on the economy. Several corporations, including PepsiCo, American Airlines, Chipotle, IBM, and Procter & Gamble, have reported lower consumer spending and increased costs due to the administration’s tariffs.
As quarterly earnings reports were released this week, company executives expressed concerns about the unpredictability of Trump’s trade decisions, leading to supply chain disruptions and higher expenses. PepsiCo’s CEO, Ramon Laguarta, acknowledged the challenges posed by the tariffs and adjusted the company’s profit outlook accordingly.
The Trump administration’s frequent changes in tariff rates, particularly on Chinese imports, have caused instability in the market and forced businesses to reassess their investments. The imposition of tariffs on a wide range of goods coming into the United States, along with retaliatory measures from other countries, has created a challenging environment for large corporations.
Chipotle, known for its burritos, reported a decline in sales due to the impact of tariffs on imported ingredients. The company highlighted the rising costs of beef from Australia and avocados from Peru, which have affected its bottom line. Procter & Gamble, a household products manufacturer, also revised its sales forecast and warned of potential price increases linked to tariffs.
In addition to the food industry, airlines like American Airlines have seen a reduction in consumer demand as a result of economic uncertainty caused by tariffs. Companies in the travel and hospitality sectors have reported fewer bookings from international travelers, citing negative reactions to U.S. trade policies. The Federal Reserve’s survey of businesses revealed a decline in visitors from Canada, with concerns about future travel patterns from Europe and China.
The stock market has reacted negatively to the ongoing trade war, with the Dow experiencing significant declines in recent weeks. Analysts and economists have raised concerns about the potential impact of Trump’s trade approach on the overall economy, noting an elevated risk of a recession in the near future. Public criticism of the administration’s trade policies has increased in recent weeks, with business leaders like Citadel CEO Ken Griffin warning about the erosion of America’s global brand reputation.