US Executives Express Concerns Over Tariffs and Economic Outlook

Increasing alarm from major U.S. companies over the effects of tariffs on profits suggests a looming economic slowdown as they grapple with uncertainty in trade negotiations.

Executives from several prominent U.S. companies have raised red flags regarding the adverse impact that tariffs are having on their operations and the broader economy. Firms including technology leader Intel, footwear brand Skechers, and consumer products giant Procter & Gamble have reduced or completely withdrawn their profit projections due to heightened economic uncertainty surrounding ongoing trade policies.

In an effort to recalibrate trade dynamics with key global partners, President Donald Trump has implemented significant tariffs aimed at compelling these nations into negotiations. Despite these actions, no formal trade agreements have been finalized. However, there are indications of progress in discussions with South Korea, which may provide some relief.

Intel's chief financial officer, David Zinsner, during an investor call, echoed concerns regarding the volatility of U.S. trade policies and related regulatory risks, suggesting that a recession has become more likely. His grim forecast for profit and revenue led to a 5% decline in Intel's stock during after-hours trading.

Similarly, Skechers has disappointed investors by retracting its annual results forecast, as the firm's operating environment becomes increasingly unpredictable. COO David Weinberg noted that the current conditions make it unfeasible to provide accurate projections.

Moreover, Procter & Gamble has indicated that it may need to adjust pricing strategies due to rising costs linked to materials sourced from China and other regions. Financial chief Andre Schulten stated the company is intent on minimizing these impacts but acknowledged that consumers might face adjustments in product pricing.

This wave of corporate caution reflects a broader trend among global companies expressing concerns related to Trump's trade strategies. In parallel, recent talks aimed at alleviating tariffs between U.S. and South Korean officials in Washington DC have reportedly yielded positive discussions, with U.S. Treasury Secretary Scott Bessent expressing optimism for rapid advancements.

As the tariff pause set to expire on July 8 approaches, more than 70 countries are reportedly eager to engage in negotiations, underscoring the significant diplomatic maneuvering surrounding these trade issues.