NEW YORK — Companies are feeling the effects of uncertain tariffs and the volatile trade war as they reveal their latest financial performances and try to predict their future finances. While some tariffs on key U.S. trading partners persist, others have been delayed, allowing time for negotiation. These changes, which can alter abruptly, create challenges for organizations and investors in forecasting the impact on costs and sales.
On Tuesday, Treasury Secretary Scott Bessent projected a possible “de-escalation” in the trade war between the U.S. and China, yet he highlighted that formal discussions have yet to commence. Here’s an overview of how some major companies are navigating the ambiguity surrounding tariffs:
**Chipotle**
Chipotle Mexican Grill announced on Wednesday that tariffs are pushing up its costs. The restaurant chain sources beef from Australia and packaging from Vietnam, Indonesia, and Thailand, while it gets avocados from Colombia and Peru, all now affected by a 10% tariff.
The tariffs could also affect the expense of constructing new outlets since components like shelving and equipment parts are imported from China, explained CFO Adam Rymer on a call with investors. However, Rymer noted that the repercussions of the tariffs on Chinese imports are more unpredictable. Recently, the Trump administration suggested a potential reduction in trade tensions with China.
In its report, Chipotle disclosed that its revenue for the January-March quarter fell short of expectations and revised down its forecast for the yearly comparable-store sales. CEO Scott Boatwright attributed the downturn in customer visits to concerns about the economy, a trend that persisted into April.
**Tesla**
Tesla finds itself in a relatively advantageous position to cope with tariffs due to its primarily domestic car production. However, it still imports materials from other countries and will encounter import tariffs.
The tariff impact is more significant in Tesla’s energy sector, largely because it imports LFP battery cells from China. The broader trade conflict could adversely affect the company since China, the leading electric vehicle market, has responded to U.S. tariffs. Earlier this month, Tesla ceased taking orders from Chinese customers for its Model S and Model X. The company’s Model Y and Model 3 for China are produced at its Shanghai factory.
Tesla CEO Elon Musk, who advises President Trump, reiterated that generally, he supports “lower tariffs for prosperity.” Nonetheless, he acknowledged that the final decisions on tariffs rest with the President.
**Akzo Nobel**
The Amsterdam-based producer of industrial and commercial paints and coatings identified a significant risk from tariffs as potentially decreasing demand for its products.
Akzo Nobel confirmed that nearly all its U.S. finished goods are manufactured locally, with the majority of raw materials sourced domestically. “We have strategically localized our procurement and production in the U.S. over the years,” stated CEO Gregoire Poux-Guillaume, during a call with analysts. “We also operate China for China and leverage the rest of Asia as an export hub.”
Akzo Nobel’s offerings, ranging from automotive industry paints to DIY homeowner products, could suffer as extensive tariffs tighten purse strings for consumers and businesses.
**Boston Scientific**
The medical device company anticipates that tariffs will predominantly impact it in the latter half of the year but asserts that it can mitigate this impact.
Despite tariffs, Boston Scientific increased its earnings and revenue predictions for the year. It forecasts a $200 million tariff impact by 2025, but plans to counterbalance it via boosted sales and curbing discretionary spending. The company cited its well-established global supply chain and substantial U.S. investments.
**Boeing**
Boeing has extensive U.S. supply chains, with many Canadian and Mexican imports exempt due to an existing trade deal.
Although Boeing sources from Japan and Italy, it anticipates recouping those tariff expenses. The net annual tariff cost on its supply chain is under $500 million. However, retaliatory tariffs are a greater worry, as they could affect aircraft delivery. China, a major recipient of U.S. tariffs, has partially retaliated by halting Boeing aircraft deliveries.
**AT&T**
AT&T, similar to other telecom companies, is encountering higher costs for phones and equipment.
The company believes it can navigate anticipated cost hikes due to the temporary halt of some tariffs and its supply chain adaptability. “The extent of any increase depends on varying factors, like how tariffs affect vendor pricing and influence consumer and business demand,” explained CEO John Stankey during an analyst call.