Newscasts - Firms worldwide cut jobs and guidance as Trump tariffs cause chaos

Logitech International SA

30/04/2025 15:21

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Source: 'Reuters - General news videos'

Description: The fallout from U.S. President Donald Trump's trade war reverberated further through the corporate world on Tuesday (April 29), with about 40 firms worldwide pulling or cutting forward guidance in the first two weeks of Q1 earnings season. Fiona Jones reports.

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Video Transcript:

The fallout from US President Donald Trump's trade war spread further through the corporate world this week. Some major companies said job cuts were on the way to lower costs, while about 40 firms worldwide pulled or cut forward guidance during first quarter earnings season. Delivery giant UPS said it would cut 20,000 jobs to lower costs, citing the biggest potential impact to trade in a century. While carmakers General Motors, Volvo, and Mercedes-Benz ditched their annual outlooks, as well as most US airlines, tech maker Logitech and drinks giant Diageo. Other blue-chip names changing forecasts included Kraft Heinz, Hilton, and Swedish appliance maker Electrolux. Meanwhile, German automaker Porsche said it had suffered a hit of at least $114 million across April and May as a result of US import tariffs. And Adidas's CEO said that "in a normal world" without the uncertainty, it would've hiked its 2025 revenue and profit forecasts after strong quarterly results. It's further evidence that Trump's see-sawing trade policy is taking a major toll on companies' ability to plan beyond the immediate term. Trump's sweeping tariffs announced in early April unleashed a wave of selling across stocks worldwide. And prompted investors to reduce holdings in the normally safe-haven US Dollar and Treasury debt. On Tuesday, Treasury Secretary Scott Bessent tried to reassure consumers and investors by noting Trump would announce cuts to planned auto parts tariffs. He also touted the Administration’s plans to cut taxes and reduce regulation to boost confidence. But executives are increasingly warning that Trump's policies have sapped consumer and business sentiment. And raise fears that even if tariffs are rolled back, the damage will last a while and won't be easily reversed. Alongside this, job openings dropped sharply in March. While a US indicator of consumer confidence in April fell to its lowest level since the COVID-era, over expectations for inflation. The trade deficit spiked to a new record on another rise in imports as people bought goods to get ahead of tariffs.