Tariffs pinch corporate earnings

From ingredient costs to sagging demand

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COMPANIES across the corporate spectrum revealed more pain from the cost of US President Donald J. Trump’s tariff war, with bellwethers Caterpillar, Marriott and others on Tuesday noting weaker demand and higher prices.

All told, global companies that have reported earnings so far this quarter are looking at a hit of around $15 billion to profits in 2025, Reuters’ global tariff tracker shows.

‘A majority of these come from industrial, manufacturing and automotive sectors, while financial and tech sectors are less affected.

Mr. Trump has said the tariffs are necessary to resolve US trade imbalances and declining manufacturing power; he has said the levies on imports will bring jobs and investment to the United States.

“I think we’re just getting started,” said Steve Sosnick, chief market analyst at Interactive Brokers in Greenwich, Connecticut. “The tariffs are still in their infancy, especially with major trading partners like Canada, China and India still in flux.”

Tuesday’s round of earnings illustrates the different ways trade policy is affecting companies, from the rising costs of imported materials like metals to the slippage in consumer confidence that has sapped demand.