Newscasts - UPS cuts 20K jobs, GM delays investor call as tariffs create chaos

Electrolux AB

29/04/2025 20:20

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Source: 'Reuters - Business videos'

Description: The fallout from U.S. President Donald Trump's trade war reverberated further through the corporate world on Tuesday, as delivery giant said it would cut 20,000 jobs to lower costs, while General Motors pulled its outlook and pushed its investor call to Thursday pending possible changes to trade policy. Lisa Bernhard has more.

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Video Transcript:

President Donald Trump's trade war continued to reverberate through the corporate world on Tuesday as UPS said it would cut 20,000 jobs to lower costs, and automaker GM pulled its outlook and delayed its investor call by two days pending possible changes to US trade policy. The moves are further evidence of how Trump's chaotic trade policy is taking a major toll on companies' ability to plan beyond the near term. According to a Reuters analysis, about 40 companies worldwide have pulled or lowered their forward guidance this first quarter earnings season. They include American ketchup maker Kraft Heinz, Swedish appliances maker Electrolux and automaker Volvo, all of which have either slashed their 2025 outlooks or abandoned them altogether. Treasury Secretary Scott Bessent on Tuesday tried to reassure consumers and investors by noting that Trump would announce cuts to planned auto parts tariffs to avoid double duties on parts and materials. He also touted the Administration's plans to cut taxes and reduce regulation to boost confidence.

The tax bill is moving forward. It is going to give permanence to the 2017 Tax Cuts and Job Act, which will go back to the question uncertainty. It will give American business certainty, it will give American people certainty.

But executives are increasingly alarmed over how Trump's vacillating trade policies have sapped consumer and business sentiment, raising fears that even if tariffs are rolled back substantially, the damage done will not be easily reversed. The turmoil led UPS CEO Carol Tome to say on her company's earnings call Tuesday that "the world has not been faced with such enormous potential impacts to trade in more than 100 years."