US Corporate Leaders Sound Alarm Over Tariffs and Economic Uncertainty
Top executives from major American companies are expressing growing concern about the financial strain caused by ongoing US trade policies, particularly the imposition of tariffs. The uncertainty around international trade relationships has already led several high-profile firms to revise or completely withdraw their financial forecasts, citing rising costs and unstable market conditions.
Among those voicing alarm are technology giant Intel, footwear brand Skechers, and consumer goods leader Procter & Gamble (P&G), all of which have pointed to the escalating tariffs and broader economic instability as key reasons for their cautious outlooks.
Intel Cites Recession Risk Amid Gloomy Forecasts
Intel’s Chief Financial Officer, David Zinsner, warned investors that the unpredictability of trade policies is significantly increasing the risk of a broader economic slowdown.
“The very fluid trade policies in the US and beyond, as well as regulatory risks, have increased the chance of an economic slowdown with the probability of a recession growing,” Zinsner said during a recent investor call.
The California-based semiconductor company reported weaker-than-expected revenue and profit forecasts, sending its stock tumbling over 5% in after-hours trading. Zinsner added, “We will certainly see costs increase,” hinting at the burden new tariffs could place on production and supply chains.
Skechers Pulls Forecast, Blames Unpredictable Environment
Footwear company Skechers, which manufactures much of its product line in Asia, particularly China, also echoed concerns about the current economic climate. The company made the unusual move of withdrawing its full-year earnings forecast altogether.
“The current environment is simply too dynamic from which to plan results with a reasonable assurance of success,” said David Weinberg, Chief Operating Officer at Skechers. The company’s shares fell after the announcement, underscoring investor anxiety over prolonged trade friction and manufacturing uncertainty.
Procter & Gamble Eyes Price Hikes to Offset Costs
Procter & Gamble, known for household staples such as Ariel detergent, Gillette razors, and Head & Shoulders shampoo, said it may need to raise prices to manage increasing raw material costs due to tariffs on Chinese imports.
Andre Schulten, P&G’s Chief Financial Officer, acknowledged that while the company is actively looking for ways to absorb the extra costs, price adjustments for consumers may be inevitable. “We'll be looking for every opportunity to mitigate the impact,” Schulten said, while noting that sales growth for the year may fall short of earlier projections.
Global Companies React to Shifting US Trade Landscape
These announcements reflect a broader trend of international businesses bracing for prolonged economic headwinds as a result of US tariff policy, spearheaded by President Donald Trump. The administration has used tariffs as leverage to bring trading partners back to the negotiating table, but the approach has introduced significant volatility into global markets.
Positive Signs in South Korea Trade Talks
Despite the challenges, some progress appears to be underway. US and South Korean trade officials recently held discussions in Washington, D.C., focused on tariff removal. According to US Treasury Secretary Scott Bessent, the meeting was “very successful,” with technical negotiations possibly beginning in the coming weeks.
South Korea’s Industry Minister, Ahn Duk-geun, confirmed the optimistic tone, stating that both sides are working toward what they are calling a “July package.” A temporary pause on the enforcement of higher tariffs for many countries is set to expire on July 8.
Trump has claimed that more than 70 countries have reached out to initiate trade negotiations since the tariffs were introduced, though no new formal trade agreements have been finalized.
Outlook Remains Uncertain
As the July deadline approaches and global trade talks continue, US companies and investors alike are keeping a watchful eye on the evolving tariff landscape. For now, the warnings from major corporations serve as a stark reminder that even as trade negotiations unfold, the current policy approach continues to have real and immediate consequences for American business.