U.S. President Donald Trump holds a “Foreign Trade Barriers” document as he delivers remarks on tariffs in the Rose Garden at the White House in Washington, D.C., U.S., April 2, 2025. REUTERS/Carlos Barria/File Photo
Global Companies Report Over $34 Billion in Losses Amid Trump’s Expanding Trade War
SAN FRANCISCO/NEW YORK/BENGALURU, May 29 (Reuters) — Global corporations have collectively reported over $34 billion in losses due to former President Donald Trump’s ongoing trade war, according to a comprehensive Reuters analysis of corporate disclosures. This figure, compiled from financial reports and earnings calls, reflects mounting costs and lost sales as businesses navigate tariffs and persistent policy uncertainty, with actual impacts expected to be far greater.
The analysis surveyed 32 S&P 500 companies, three firms in Europe’s STOXX 600, and 21 firms in Japan’s Nikkei 225, highlighting how businesses across the United States, Asia, and Europe are contending with erratic trade policy, disrupted supply chains, and rising production costs.
Uncertainty Drives Forecast Cuts and Strategy Shifts
At least 42 major companies have cut profit forecasts, and 16 have withdrawn or suspended guidance altogether, citing an inability to predict market conditions. Companies like Apple, Ford, Porsche, Sony, Walmart, Volvo Cars, and United Airlines have acknowledged that Trump’s tariff policies have significantly undermined their ability to estimate costs or forecast performance.
“You can double or triple your tally and we’d still say the magnitude is bound to be far greater than most people realize,” said Jeffrey Sonnenfeld, professor at Yale School of Management, emphasizing hidden and long-term economic ripple effects.
While a temporary halt in U.S.-China trade hostilities and a U.S. court’s recent block of new tariffs has provided some relief, the overall policy environment remains volatile. Analysts say companies are responding by relocating supply chains, investing in near-shoring, and exploring alternative markets, all of which entail significant transitional costs.
Tariff Mentions Surge Across Earnings Season
Reuters found that 72% of S&P 500 companies mentioned tariffs during the first-quarter earnings season, up from 30% in the previous quarter. In Europe’s STOXX 600, 219 companies raised tariff concerns, up from 161, and in Japan’s Nikkei 225, the number rose from 12 to 58.
“If you take into account this uncertain world and you can’t guide anybody to a number, it’s safer not to guide,” said Rich Bernstein, CEO of Richard Bernstein Advisors.
Wall Street analysts project average quarterly earnings growth for the S&P 500 at 5.1% through year-end, down sharply from 11.7% growth during the same period last year, according to LSEG data.
Sector Impacts: Automakers, Airlines, and Consumer Goods Hit Hard
Industries with complex, global supply chains have borne the brunt of the fallout. Automakers, airlines, and consumer goods companies face rising costs from levies on raw materials such as aluminum, electronics, and auto parts. U.S. labor costs have also made onshoring production more expensive.
- Kimberly-Clark, the maker of Kleenex tissues, slashed its profit forecast due to an expected $300 million tariff impact this year. The company also announced a $2 billion U.S. investment to bolster domestic manufacturing—excluded from the $34 billion tally.
- Apple and Eli Lilly have also revealed new U.S.-based investments.
- Diageo, the maker of Johnnie Walker and Don Julio, is bracing for a $150 million annual hit to profits due to a 10% import tariff and has committed to cutting $500 million in costs by 2028.
“Tariffs could significantly drive up the cost of a nice night out — or even a cozy night in,” said Zak Stambor, analyst with eMarketer.
Policy Position and Rationale
The Trump administration maintains that tariffs are a necessary tool to correct trade imbalances, repatriate jobs, and compel foreign governments—such as Mexico—to curb illegal immigration and drug trafficking.
“The Administration has consistently maintained that the United States has the leverage to make our trading partners ultimately bear the cost of tariffs,” said White House spokesperson Kush Desai.
However, economists argue the burden is largely falling on U.S. businesses and consumers, with increased costs passed along the supply chain.
As trade uncertainty persists and companies continue to adjust their strategies and forecasts, the full economic impact of Trump’s trade war remains unclear but is likely to expand significantly in the months ahead.
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