Businesses brace for change amid tariff roller coaster – Washington Examiner
The article discusses the impact of President Donald Trump’s recently implemented tariffs on various businesses,which have caused fluctuations in the stock market. Following their recent declaration, a 90-day pause was granted for tariffs affecting non-retaliating countries; however, the initial 10% tariffs on certain goods still took effect, notably affecting imports from China.Major companies like Walmart, Delta Air lines, and JPMorgan are adjusting their forecasts in response to these tariffs. Walmart has abandoned its first-quarter operating income outlook, while Delta anticipates a revenue decline due to reduced travel demand. JPMorgan’s CEO warned that the tariffs could lead to a recession. businesses are preparing for the important economic changes these tariffs may bring,as concerns about their broader implications continue to grow. Additionally, Trump’s approval ratings have dipped amid this turbulent economic climate.
Businesses brace for change amid tariff roller coaster
Multiple businesses are still reacting to President Donald Trump’s tariffs and the incoming effects they may have on them, which have shaken the stock market since their inception last week.
On Wednesday, the president’s tariffs were given a 90-day pause to non-retaliating countries, just a week after being unveiled on Liberation Day. In some cases, the tariffs have even advanced. However, the baseline 10% tariffs that went into effect on Saturday are not part of this pause, with China being one of the few exempt from Trump’s announcement now that it has been hit with a 125% tariff.
In the midst of the economic whirlwind, several companies have sought to prepare for what the tariffs could mean.
Walmart
Walmart is scrapping its outlook for operating income within the company’s first quarter. John David Rainey, the company’s chief financial officer, stated that operating income has become “harder to predict, and we’ve widened our internal range of scenarios.” Despite this, the company still expects an outlook of 3-4% growth.
Rainey also said that the company is “still working through” how the tariffs will affect it but also noted that about two-thirds of products sold by Walmart are made in the United States. The last third is imported, with China and Mexico as the “most significant” regarding them.
Delta Air Lines
Delta Air Lines, meanwhile, has forecast its second-quarter revenue to decline by up to 2%. It comes after the airline cut its first-quarter revenue and profit outlooks, citing lower travel demand for both corporate and leisure purposes.
CEO Ed Bastian has also criticized Trump’s tariffs, stating the airline has seen “a corresponding reduction in broad consumer confidence and corporate confidence” over the last six weeks. Demand for air travel was “quite good” in January, but this demand “really started to slow” in mid-February, about a month into Trump’s second term in office.
JPMorgan
JP Morgan CEO Jamie Dimon contended that while it is reasonable for the White House to pursue a more “fair” international trade policy, the current mass tariffs will “likely” result in a recession. Before Trump’s Wednesday afternoon announcement, he urged the administration to negotiate new trading deals since an economic “slowdown” was on the horizon.
“Part of me thinks, ‘Don’t let this go on too long’ because it’s causing cumulative damage, including huge anger at the United States,” Dimon said on Fox Business’s Mornings with Maria Bartiromo. “My goal would be to keep the allies together, get them together, keep working on that. You know, where you fix the trade, if it’s unfair trade, fix it.”
DON BACON DEFENDS ‘POWER OF THE PURSE’ AFTER TRUMP IMPLIES HE’S A ‘REBEL’ ON TARIFFS
Meanwhile, Trump’s approval rating has dipped in the wake of Liberation Day, with 43% of survey participants viewing him favorably against 54% who held an unfavorable opinion of him. On Wednesday, the president argued it is “a GREAT time” for companies to move to the U.S. to experience “ZERO TARIFFS,” citing Apple’s recent investment in the U.S.
Treasury Secretary Scott Bessent has also cautioned other countries not to realign with China on trade, urging them to talk with the U.S. instead.
" Conservative News Daily does not always share or support the views and opinions expressed here; they are just those of the writer."
*As an Amazon Associate I earn from qualifying purchases
Now loading...