Apple, GM Among US Firms Facing Billions in Tariff Costs

From Apple to General Motors (GM), corporate America is bracing itself for tens of billions of dollars in damages from US President Donald Trump's trade war - and that is before most affected goods have landed.

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Among US companies that have disclosed financial projections so far, GM sees a US$5 billion (S$6.5 billion) hit in 2025, while Apple expects US$900 million in higher costs in the current quarter. Nvidia is taking a US$5.5 billion charge to account for new export controls.

The Trump administration imposed across-the-board tariffs on most imports and targeted some countries and industries for additional levies.

Duties are as high as 145 per cent on many Chinese imports, and Beijing retaliated with import taxes of 125 per cent on American goods. Foreign-made steel and aluminum also face a 25 per cent US tariff.

The pre-emptive warnings from these and other blue chips may vastly underestimate the overall hit to bottom lines.

Many companies have yet to provide guidance, with some taking a wait-and-see approach. Others have foreshadowed the pain by widening expense ranges, pulling their full-year outlooks, or warning price hikes will erode consumer demand.

Meta Platforms, for instance, lifted its capital spending projection for the year by as much as US$7 billion, blaming the change in part on higher-than-expected costs for globally sourced equipment.

"There's just a lot of uncertainty around this given the ongoing trade discussions," Ms Susan Li, chief financial officer of the owner of Facebook and Instagram, said on a call with analysts.