Major US companies across key industries are sounding the alarm over the escalating tariff war, cautioning that rising costs and uncertain global trade conditions are threatening to derail earnings, pressure consumers, and disrupt supply chains.
Apple Faces $900 Million in Additional Costs
Tech giant Apple has revealed significant financial pressures due to the tariffs. In a recent earnings call, CEO Tim Cook stated that while immediate impacts were mitigated through supply chain adjustments and inventory management, the long-term effects are more severe. “Assuming the current global tariff rates, we estimate the impact to add $900 million to our costs this quarter,” Cook noted.
Automotive Sector Feels the Strain
In the automotive industry, General Motors (GM) reported facing potential tariff-related exposure of $4 billion to $5 billion this year. In a letter to shareholders, GM cited supply chain pressures and rising input costs stemming from escalating trade tensions.
Retail and Dining Chains See Consumer Pullback
The retail sector is already experiencing the strain of the tariff war. McDonald’s reported a surprise dip in global sales, describing the current landscape as “the most difficult market environment in recent years.” The company emphasized that “low and middle-income consumers, in particular, are being weighed down by the cumulative impact of inflation and heightened anxiety about the economic outlook.”
Other major food service brands echoed similar concerns. Domino’s stated that its delivery business continues to suffer due to “macro pressures” affecting low-income households, a key consumer base for its offerings.
Footwear Industry Warns of Threats to Survival
The footwear industry has taken its concerns directly to the US government. In a letter addressed this week to the President, the Footwear Distributors and Retailers of America urged the removal of shoes from the list of goods subjected to tariffs, calling them “a threat to the survival of the industry.”
Signed by 76 major brands including Nike, Adidas, Skechers, and Under Armour, the letter warned that companies producing affordable shoes are unable to absorb or pass on the additional costs. “We are deeply concerned about imminent US footwear job losses, added costs for consumers, and reduced consumer spending that will fundamentally hamper our industry and harm the entire US economy,” the letter stated. It also noted that many orders have already been put on hold, risking a footwear shortage for American consumers.
Wider Economic Implications
As the tariff war continues, more industries may find themselves grappling with similar challenges. The cumulative effect on the economy could be significant, affecting not just corporations but also consumers, particularly those from low and middle-income households. Businesses are urging swift action to mitigate the impact and bring stability back to the global trade environment.
