The best leaders of well-known US companies warn of the impact that tariffs have on their companies and a wider economy.
Technology giant Intel, Skechers Shoe Producer and Consumer Product Company, Procter & Gamble, or have reduced their profit forecasts, or withdrew them, citing economic uncertainty.
US President Donald Trump is trying to balance relationships with key trading partners by using steep tariffs to lead them to a negotiating table.
No new trade agreements have been announced yet between the US and other countries, but there are signs of progress in negotiations with South Korea.
“Very liquid -liquid commercial policy in the United States, and then, as well as regulatory risks, are increasing the likelihood of economic delay with the likelihood of recession,” said Intel Chief Financial Officer David Zinsner while calling with investors.
“We will surely see an increase in costs,” he added when the California -based company announced grim forecasts for profit and revenue.
Intel's shares dropped by more than 5% with prolonged trade after these remarks.
Beyond the technology industry, the Skechers shoe manufacturer also disappoints investors. The company saw that his shares were falling after he withdrew his annual forecast for the results.
“The current environment is simply too dynamic to plan results with reasonable confidence for success,” Skechers Chief Operations David Wineberg told investors in call after profit.
Skechers – like Nike, Adidas and Puma rivals – uses factories in Asia, especially in China to make its products.
Comments from Procter & Gamble (P&G) leaders have also hinted at how tariffs can mean higher prices to its customers.
The manufacturer of Ariel, Head & Nursers and Gillette said he was considering changes in prices to compensate for the additional cost of materials received from China and other places. He also said that sales expect to increase this year less than before the forecast.
“We will look for every opportunity to mitigate the impact,” said Andre Schultten, a financial head of P&G, adding that there will be adjustments to “some level of consumer pricing.”
The Japanese owner of 7-Eleven amenities shops, Seven & I, said he also felt the impact of commercial tensions.
North America represents more than 70% of its sales.
His incoming CEO Stephen Dakus told the BBC about the uncertainty that the business faces.
“We don't know what these tariffs will be. We have seen some news lately, where they have changed a lot, so it's a little difficult to understand what the ultimate effect is,” he said.
“Reducing prices and quality reduction usually doesn't work … So what you need to do … is to find ways to maintain quality while reducing costs.”
They join a growing list of examples of companies around the world that warn of Trump's trade policies.
South Korean cars that make the giant Hyundai on Friday that he created a working group to find ways to deal with the fall out of tariffs.
“We expect the challenging business prospects to continue due to the increase in trade conflicts and other various unpredictable macroeconomic factors,” the statement said.
He added that he was considering moving some production from South Korea.
The company has already moved some production from Mexico to the United States, which is about one -third of its global sales.
Meanwhile, there were signs that conversations on Thursday between US and South Korean trade staff in Washington aimed at eliminating tariffs were positive.
US Department of Finance Secretary Scott Bensten said the two countries had a “very successful” meeting.
“We can move more faster than I thought, and we'll talk about technical conditions next week,” he told reporters after the meeting.
South Korea Minister, Ann Duke-Gown, who also participated in the conversations, repeated Bestent's optimism and added that they were working for a “July Pack”.
A 90-day break for higher tariffs affecting dozens of countries is due to expire on July 8th.
Trump said more than 70 countries have turned to start negotiations after tariffs are announced.