Top executives at well-known US firms are warning about the impact that tariffs are having on their companies and the wider economy.
Technology giant Intel, footwear maker Skechers and consumer goods firm Procter & Gamble, have either cut their profit forecasts or withdrawn them citing economic uncertainty.
US President Donald Trump has been trying to rebalance relations with key trading partners by using steep tariffs to bring them to the negotiating table.
No new trade agreements between the US and other countries have been announced yet but there have been signs of progress in talks with South Korea.
“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,” said Intel’s chief financial officer, David Zinsner, during a call with investors.
“We will certainly see costs increase,” he added as the California-based firm announced gloomy profit and revenue forecasts.
Intel’s shares dropped by more than 5% in extended trading after those remarks.
Beyond the technology industry, footwear maker Skechers also disappointed investors. The firm’s shares fell after it withdrew its annual results forecast.
“The current environment is simply too dynamic from which to plan results with a reasonable assurance of success,” Skechers’ chief operating officer, David Weinberg, told investors in a post-earnings call.
Skechers – like rivals Nike, Adidas and Puma – uses factories in Asia, particularly in China, to make its products.
Comments from Procter & Gamble (P&G) executives also hinted at how tariffs could mean higher prices for its customers.
The maker of Ariel, Head & Shoulders and Gillette said it was considering changes to its prices to make up for the extra cost of materials sourced from China and other places. It also said it expected sales to grow this year less than previously forecast.
“We’ll be looking for every opportunity to mitigate the impact,” said Andre Schulten, P&G’s financial chief, adding that there will be adjustments to “some level of consumer pricing”.
The Japanese owner of the 7-Eleven convenience stores, Seven & I, said it is also feeling the impact of the trade tensions.
North America account for more than 70% of its sales.
Its incoming chief executive, Stephen Dacus, told the BBC about the uncertainty faced by the business.
“We don’t know what those tariffs are going to be. We’ve seen some news recently where they have changed quite a bit so it’s a little bit difficult to understand what the ultimate effect is,” he said.
“Lowering prices and lowering quality typically doesn’t work… so what you have to do… is find ways to maintain quality while bringing the cost down”.
They join a growing list of examples of companies around the world that have warned about the impact of Trump’s trade policies.
South Korean car making giant Hyundai announced on Friday that it has set up a task force to find ways to deal with the fallout from tariffs.
“We expect a challenging business outlook to continue due to intensifying trade conflicts and other various unpredictable macroeconomic factors,” it said.
It added that it is considering moving some manufacturing out of South Korea.
The firm has already shifted some production from Mexico to the US, which accounts for about a third of its global sales.
Meanwhile, there were signs that talks on Thursday between US and South Korean trade officials in Washington DC, aimed at removing tariffs, have been positive.
US Treasury Secretary Scott Bessent said the two sides had a “very successful” meeting.
“We may be moving faster than I thought, and we will be talking technical terms as early as next week,” he told reporters after the meeting.
South Korea’s industry minister, Ahn Duk-geun, who also took part in the talks, echoed Bessent’s optimism and added that they are working toward a “July package”.
A 90-day pause on higher tariffs affecting dozens of countries is set to expire on 8 July.
Trump has said more than 70 countries have reached out to start negotiations since the tariffs were announced.
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