Corporate America is sounding the alarm on tariffs

Some of America’s biggest companies say President Donald Trump’s erratic trade policy is leading consumers to spend less, raising costs for their businesses and making it impossible to plan for the future.

America’s largest companies say President Donald Trump’s erratic trade policies are leading consumers to spend less on airline tickets and burritos, raising costs for businesses and making it impossible to plan future investments. PepsiCo, American Airlines, Chipotle, IBM, Procter & Gamble and other companies announced quarterly earnings this week, giving investors their first public comments on the impact of Trump’s tariffs. They all signaled that the import taxes are hurting consumers and the economy. “We expect more volatility and uncertainty, particularly related to global trade developments, which we expect will increase our supply chain costs,” PepsiCo CEO Ramon Laguarta said in a statement. The company lowered its full-year profit outlook. The Trump administration has made a series of dizzying announcements on tariffs on imported goods, the heaviest on China, provoking countries to retaliate with tariffs of their own. The United States has imposed a 10% universal tariff on virtually every good coming into the country, plus higher rates for certain goods, and 145% tariffs on China — essentially a trade embargo on the world’s second largest economy. These whiplash policy decisions, along with a consumer slowdown, have been a nightmare for America’s biggest companies. Companies have not called out Trump by name, but they all say tariffs are taking a toll on business.