McDonald's and GM Say US Policy Is Hurting Business

McDonald's and General Motors have warned that uncertainty around Donald Trump's tariff policy is hitting sales and knocking profits.

- Joanna Partridge

The fast-food chain reported a 3.6% fall in sales in the US market during the first quarter, driven mainly by lower customer numbers as consumers reined in their spending in the face of an unpredictable economic outlook. It was the largest quarterly fall in sales since the Covid lockdowns of 2020, and came as US measures of consumer confidence plummeted in March and April.

The chief executive of McDonald's, Chris Kempczinski, said the company was navigating the "toughest of market conditions" as it reported a surprise 1% fall in global sales in the first three months of the year. "Consumers today are grappling with uncertainty," Kempczinski said.

The company has been trying to boost spending on its Big Macs and chicken nuggets through the launch of a value menu.

GM, one of the big three Detroit carmakers, cut its profit guidance for the coming year yesterday, and cautioned that Trump's tariffs could cost it as much as $5bn (£3.8bn) in 2025.