Top executives from prominent US companies are voicing growing concerns about the economic fallout from President Donald Trump’s tariff policies, with several firms revising or withdrawing their profit forecasts. Technology giant Intel, footwear maker Skechers, and consumer goods company Procter & Gamble have all been affected by economic uncertainty tied to the ongoing trade tensions.
Intel, based in California, announced reduced profit and revenue forecasts, with the company’s chief financial officer, David Zinsner, warning that the “very fluid trade policies” and “regulatory risks” are increasing the likelihood of an economic slowdown, raising the probability of a recession. Intel’s shares dropped by more than 5% following the remarks, as the company projected rising costs due to tariffs. Zinsner acknowledged that the company would face increased expenses, particularly in its global supply chain.
Skechers, known for its footwear, also faced investor disappointment after it withdrew its annual forecast. Chief Operating Officer David Weinberg noted that the current economic environment was too unpredictable to ensure accurate results, referencing the company’s reliance on Asian manufacturing, particularly in China. As with competitors such as Nike and Adidas, Skechers is vulnerable to tariffs on imported goods, which have complicated its financial planning.
Procter & Gamble, the maker of household brands such as Ariel, Head & Shoulders, and Gillette, echoed similar concerns. Executives from the company revealed they were considering price hikes to offset the rising costs of materials, particularly from China. Financial chief Andre Schulten confirmed that P&G expects slower sales growth than initially anticipated and may adjust consumer pricing in response to the increased costs caused by tariffs.
The impact of trade tensions is not limited to US companies. Seven & I, the Japanese owner of 7-Eleven convenience stores, also reported challenges due to the tariffs, particularly given that North America accounts for more than 70% of its sales. Incoming CEO Stephen Dacus expressed uncertainty over how the changing tariffs will ultimately affect the business, noting that reducing prices or quality isn’t a viable solution.
Meanwhile, Hyundai, the South Korean carmaker, has taken steps to address the impact of tariffs, setting up a task force to navigate the trade challenges. The company, which has already moved some production from Mexico to the US, is considering shifting additional manufacturing out of South Korea in response to the tariffs. The company warned that trade conflicts and other unpredictable factors will continue to affect its outlook.
In a more optimistic development, trade talks between US and South Korean officials on Thursday appeared to yield positive results. US Treasury Secretary Scott Bessent described the meeting as “very successful,” with plans to discuss technical terms as early as next week. Both sides are working toward a trade agreement, with a key deadline approaching on July 8, when a 90-day pause on higher tariffs is set to expire.
