Corporate America puts Wall Street on alert over damage from trade war

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Corporate Americana calculates the cost of the trade war Donald Trump, with executives warning against escalating expenses, available supply chains and hitting the world’s largest economy.
While the company’s leaders in general avoided the general criticism of the American president, they were forced to confront him Definitions – Which includes 145 percent fees against China Exports – on quarterly profit calls with analysts this month.
Transport, Energy, and Wireless Communications and House Building companies were among those to discuss the definitions with Wall Street. In their comments, executives sparked a warning regarding the consequences of Trump’s comprehensive duties, echoing economists’ warnings From stagnation.
“Executive chiefs are a truly unhappy handful,” said Stephen Burdi, head of credit research at TCW.
Trump was warned of the impact of his definition that was on trade by the CEO of Wall Mart and a goal at a meeting at the White House on Monday, according to one person who is aware of the situation.
While less than the fifth blue stock in the S&P 500 index has been held in the first quarter by Tuesday, definitions were cited on more than 90 percent of them, according to FactSet. The term “recession” was mentioned on 44 percent of calls, compared to less than 3 percent on the one that covers the fourth quarter of 2024.
Norfolk Souton, a large group of railways in the United States, said on Wednesday that the customs tariff may slow the shipments of cars and multimedia containers, while coal production may cool “amid great uncertainty about the export trade.” Boeing also He said on Wednesday The American trade war with China will force it to find two alternative buyers for some of its aircraft.
The definitions will increase the cost of gas generators, as the demand for electricity in the United States increases at a rate “unlike anything we have seen since the end of World War II.”
Manufacturer for gas turbine Ji Fernova He said that its costs may rise up to $ 400 million this year, while the Hallibrton and Baker Hughes services have warned that Trump’s trade war could swing, disrupt supply chains and reduce oil prices, causing pits withdrawing.
Baker Hughes shares fell 6.4 percent on Wednesday after the customs tariff may cost the company up to $ 200 million in profits before interest, taxes, depreciation and firefighting this year.
AT & T and Verizon, one of the largest American communications groups, warned that customs tariffs can raise the price of phone phones and wireless steering devices.
“If the customs tariff is high as they say on phones, we are not planning to cover this in our work. This will not be possible,” Hans Vestberg, CEO of Verizon, told analysts this week.
Boston said that the customs tariff will cost the medical device maker about 200 million dollars this year, even as the profit directions are raised. Johnson and Johnson last week Preserve It expects its annual profits, but I noticed $ 400 million in costs related mainly to the definitions of medical devices.
In the thirty -third, CEO William Brown said, “The tariff will be the opposite wind this year.” The manufacturer of Scotch and notes after that it will try to reduce the strike by transporting production and stocks around its network of 110 factories and 88 distribution centers, by reducing costs and raising prices.
“We are trying to be smart, strategists, and two rituals in this,” said Brown.
At Berler Bolgop, CEO Ryan Marshall said the definitions will add about $ 5,000 on average to the price of selling new homes.
“Whether it’s volatility in the stock market, concerns about inflation caused by customs tariffs, volatility in interest rates or increasingly talk about stagnation, the demand in April was more volatile and less daily,” Marshall told analysts.
Aerospace and Defense RTX said it may suffer from $ 850 million before taxes before Trump’s tariff if it remains in place until the end of the year. GE Aerospace said it will raise Prices To help compensate for approximately $ 500 million at additional costs.
Executive officials respond quickly to the changing American trade policy. In early April, Trump suspended the so -called mutual definitions against most countries for 90 days after it entered into force, while raising the definitions on China.
It plans to spare automotive makers from some definitions and financial times I mentioned Wednesday.
Bordi from TCW said that the CEOs were stuck in a kind of animation suspended as changes in commercial policy.
“They do not know whether they will wake up within six months in a completely new global system, or whether this will feel like a really bad dream,” said Burdi.
Gregory Meyer, George Sterir, Jimmy Smith, Peter Wales, Zahra Moner, Will Schmidt and Dimitri Sevastopolu
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2025-04-24 04:00:00