Wall Street analysts are bombing U.S. companies, questioning how they will deal with Donald Trump’s trade war, a sign of how presidential policy flows among U.S. companies.
According to FactSet data, the term “tariff” appears in at least 200+ revenue telephone executives with analysts and investors, while in the group listed on the S&P 1,500 Composite Index of U.S. companies have Reported earnings for the year. During Trump’s first semester of 2017-21, questions about trade taxation echoed a similar jump.
Wall Street’s growing interest in how companies will compete with trade taxes highlights how Trump’s trade skirmishes affect groups across industries.
The U.S. president plans to impose a 25% tax on Canada and Mexico this week, claiming they need to do more to address immigration and mobility of fentanyl. Later on Monday, he agreed to tariffs on Mexico and Canada lasted for a month, while new tariffs on imports to China were 10% ahead of schedule.
“We do business with China. We do business with Mexico. We do business with Canada.
“We are now developing mitigation strategies.”
Mexico is the largest single source of imports from the United States, followed by China and Canada. Automotive and home appliance manufacturing and agriculture are sectors that are highly dependent on cross-border North American trade.
Donnie King, CEO of Tyson Foods, said meat bag hands are conducting “contingency plans” for any retaliatory tariffs sold to Mexico. Last year, U.S. pork producers shipped more than 100,000 tons to Mexico, according to the American Meat Export Federation.
“Essentially, whether it’s pork or chicken, what we’ll do is we’ll find other markets and we’ll use our global knowledge and expertise to try and try to move these products when necessary,” King said Monday.
Alcohol drinks are not as simple as commodities like pork.
Johnnie Walker Maker Diageo has calculated that if tariffs on Mexico and Canada start from March, the spirits giant’s operating profit will be hit by $200 million in the fiscal year ending June 2025.
The company said it plans all possible situations and could turn to price increases by managing inventory, such as shipping additional products to the U.S. before any new tariffs.
“It’s a very smooth situation,” CEO Debra Crew said Tuesday. “But we do have a lot of leverage that we can pull and we will continue to interact with the U.S. government” and Canadian and Mexican authorities .
Toymaker Mattel said Tuesday that to further demonstrate the impact on consumer-centric brands, the new tariffs could raise U.S. prices as it is located in factories in countries including China and Mexico.
This impact may also be widespread in the industrial sector.
Baird analyst Luke Junk said that during the automobile production process, some auto parts can cross the boundaries multiple times. Suppliers have no choice but to submit the cost of tariffs to automakers such as General Motors and Ford. He said they would pass the cost to consumers.
Even after a large domestic investment over the past few years, the U.S. renewable energy industry still relies on China. In China, 70% of the world’s solar panels, such as polycrystals, lenses and mints are invested, and so are more than 60% of battery components such as cathodes, anodes, anodes and electrolytes.
Clean Energy executives warn that tariffs will increase equipment costs and weaken the Inflation Act, which includes $370 billion in federal energy incentives. Trump opposes the legislation, which former President Joe Biden signed in 2022.
“We won’t die because of this, but we’d rather use it for creative work,” said Heliene CEO Martin Pochtaruk, who runs a solar panel factory in Minnesota and imports equipment from China.
Investors showed signs of relief as tariffs in Mexico and Canada were suspended late Monday. Stock jumped high on intuitive surgery by maker of robotic surgical equipment, which warned last month that tariffs were hit because “a portion of our instruments are currently made in Mexico.”
By contrast, NAPCO Security Technology, a New York-based manufacturer of lock and alert systems, touted an assembly base in the Dominican Republic.
CEO Richard Soloway told analysts this week that competitors “made everything in China.” “So I want 10% [tariff] Will make us more competitive in the market and help us gain more market share because we have excellent products and excellent prices, dealers are price-sensitive. ”
Gregory Meyer, Taylor Nicole Rogers, Amanda Chu and Oliver Barnes, Oliver Barnes in New York, Claire Bushey in Chicago and Madeleine Speed and Susannah Savage in London
