Factbox: How big global companies are dealing with tariff trauma
29/05/2025 17:56
May 29 (Reuters) - Major companies across the world are laying out plans to tackle the fallout from the Trump administration's trade war , highlighting how rapid tariff changes are deepening uncertainty around financial planning. An analysis by Reuters showed the impact stretches into billions of dollars. Sector bellwethers have slashed or withdrawn earnings forecasts, cautioned about rising costs, and unveiled strategies to navigate the uncertainty ahead. Here is a look at how some of the biggest companies in the world have reacted to tariffs over the past few weeks:
| Company | Country | Forecast Changes/ Profit Warning | Costs Impact | Supply Chain Changes/ Price Changes | Others | Comments |
| AppleAAPL.O | United States | Predicts hit to Q3 gross margins | Warned of $900 million costs related to tariffs | iPhones sold in the U.S. in Q2 will come from India; vast majority of products for markets outside U.S. will come from China | Trims share buyback program by $10 billion | CEO: We have a complex supply chain. There's always risk in the supply chain |
| FordF.N | United States | Suspended FY25 guidance; predicts $1.5 bln impact to FY25 core earnings | Estimated gross cost of tariffs at ~$2.5 billion | Hiked prices on three of its Mexico-produced models | -- | Offsetting $1 billion of tariff costs through measures including transporting vehicles from Mexico to Canada using bond carriers |
| General MotorsGM.N | United States | Cut FY25 profit forecast | Tariff exposure expected between $4 billion and $5 billion | Working with suppliers to further increase their U.S. content for higher levels of compliance with the USMCA trade agreement | Temporarily paused buyback activity | CEO: "Making a commitment that we are going to bring more production back to this country to build on what we already have." |
| WalmartWMT.N | United States | Withheld Q2 earnings guidance | -- | To start raising prices in May due to high cost of tariffs | Working with suppliers to substitute tariff-affected components | CEO: Will do best to keep prices as low as possible; unable to absorb all the pressure given narrow retail margins |
| Toyota7203.T | Japan | Forecast 21% decline in FY25 profit | Estimates 180 billion yen ($1.25 billion) hit to April-May results | -- | Intends to continue to increase dividends despite tariff impact | CEO: Over long-term, we'll continue to progress with local production and development and in short-term we'll work on optimising operations to best meet demand. |
| Honda7267.T | Japan | Forecast a 59% decline in FY25 profit | Expects 650 billion yen hit to its FY26 operating profit | -- | Its plans to build an EV supply chain in Canada to be put on hold for "approximately two years" | Expect to offset 200 billion yen of tariff impact through "recovery efforts" |
| Delta Air LinesDAL.N | United States | Withdrew FY25 forecast | Forecast Q2 profit below expectations | -- | To defer aircraft deliveries that face tariffs and slash capacity to protect margins | CEO: "Given broad economic uncertainty around global trade, growth has largely stopped." |
| RTX CorpRTX.N | United States | -- | Expects $850 million hit to profit over 2025 | -- | -- | CEO: Current environment is clearly very dynamic, but our company is well-positioned to perform operationally |
| 3MMMM.N | United States | Predicts impact of 20-40 cents/share on 2025 adjusted profit | Sees $850 million of potential annualized impact before exemptions | Plans to leverage its network to mitigate the tariff costs | -- | CEO: Have opportunities to shift around network to bring product into China from other regions that don't have same sort of tariff effect |
| Johnson & JohnsonJNJ.N | United States | Cuts FY25 adjusted operational earnings forecast | Predicts $400 million cost hit, primarily in medical device business | -- | -- | CEO: Tariffs on pharmaceuticals can create supply chain disruptions; favorable tax policies would be more effective in boosting U.S. manufacturing capacity |
| MTU Aero EnginesMTXGn.DE | Germany | -- | Expects impact of tariffs to be in the mid-to-high double-digit million euros range in 2025 | -- | -- | CEO: U.S. customs policy is highly volatile at the moment and its potential impact on the global aviation industry is hard to predict right now |
| PorscheP911_p.DE | Germany | Cut FY25 profit margin and revenue forecast | Suffered a hit of at least 100 million euros across April and May | -- | -- | CFO: Localising production in the U.S. made no sense at the moment due to Porsche's low vehicle sales figures |
| Mercedes-BenzMBGn.DE | Germany | Withdrew FY25 earnings | If tariffs remained in place all year, profit margins would reduce by 300 bps on cars and 100 bps on vans | -- | "Constructive" talks with the Trump administration over boosting Mercedes' U.S. manufacturing presence ongoing | CEO: "Clearly Mercedes-Benz is a global player ... we don't fear competition in any direction. But that's not the environment we're operating in." |
| StellantisSTLAM.MI | Netherlands | Suspends FY25 guidance | -- | Calibrating production and employment to reduce impacts on profitability | To reasses capital spending plans between May and June and calibrate "production and employment to reduce impacts on profitability". | Company: "Response and mitigation actions will continue to be refined as appropriate." |
| Volvo CarsVOLCARb.ST | Sweden | Withdrew earnings guidance for FY25 and FY26 | -- | Need to adapt to a more regionalised world, including a more tailored approach for each region | Announced "cost and cash action plan" worth 18 billion Swedish crowns, as well as restructuring of U.S. operations | CEO: Era of "being a global company", having global products and shipping cars back and forth over the borders, "seems to be gone". |
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