Economy2d ago·39 sources
How U.S. Businesses Are Shaving Billions Off Their Tariff Bills
Companies worldwide are reporting significant financial impacts from U.S. tariffs, with hundreds reacting to trade war measures. As of mid-February, 369 companies had responded, and by the end of May, hundreds more indicated tariffs would hurt earnings, projecting a global hit to profits exceeding $34 billion. During the second-quarter earnings season, companies reported a full-year financial hit ranging from $16.2 billion to $17.9 billion, with an additional $15 billion projected for 2026. Toyota estimated a nearly $10 billion hit for its fiscal year ending March 2026. The article details various company reactions, including withdrawing or cutting guidance, implementing price hikes, experiencing financial hits, issuing profit margin warnings, changing supply chains, altering investments, and facing surcharge fees. Specific U.S. companies like NIKE have revised their estimated annual cost from tariffs upwards to $1.5 billion, impacting gross margins. The data is compiled from financial reports, interviews, and official statements, illustrating a broad and substantial impact across various sectors and regions.