Trump’s trade war costs companies over $34 billion in sales, expenses

US President Donald Trump's trade war has resulted in companies losing over $34 billion due to decreased sales and increased expenses.

This figure is expected to grow as continued tariff uncertainties hinder decision-making at some of the world’s largest corporations, Caliber.Az reports per foreign media.

Across the US, Asia, and Europe, companies such as Apple, Ford, Porsche, and Sony have either lowered or withdrawn profit forecasts. The majority cite the unpredictable nature of Trump’s trade policies as making cost estimations nearly impossible. The $33 billion estimate comes from 32 companies in the S&P 500, three firms in Europe’s STOXX 600, and 21 from Japan’s Nikkei 225 indices.

Economists believe the actual cost to businesses is likely to be many times higher than what has been publicly disclosed so far.

"You can double or triple your tally and we'd still say ... the magnitude is bound to be far greater than most people realize," said Jeffrey Sonnenfeld, professor at the Yale School of Management. 

He added that the broader consequences could be more severe, pointing to possible reductions in spending by consumers and businesses, along with heightened inflation expectations. While a recent slowdown in Sino-US trade tensions has provided some relief, and Trump has retreated from tariff threats against Europe, the final terms of trade agreements remain uncertain. 

A US trade court blocked the implementation of Trump’s tariffs. In this uncertain climate, strategists suggest companies will focus on strengthening supply chains, increasing near-shoring efforts, and exploring new markets—all of which will raise costs. Companies remain unclear on the total impact. As earnings season ends, at least 42 firms have cut their forecasts and 16 have withdrawn or paused guidance. For example, Walmart recently refused to provide a quarterly profit forecast and announced plans to raise prices, drawing criticism from Trump. 

Volvo Cars, heavily exposed to US tariffs, withdrew its earnings forecasts for the next two years, while United Airlines issued two different forecasts, citing the impossibility of predicting the macroeconomic environment this year. Trump has argued that tariffs will reduce America’s trade deficit and encourage companies to bring jobs back to the US. He also claims tariffs will pressure countries like Mexico to curb illegal immigration and drug trafficking.

By Naila Huseynova