NEW YORK — The latest set of financial results and forecasts is clouded with uncertainty for businesses of all sizes as they attempt to navigate a global trade environment disrupted by changes in U.S. policy.
The introduction of tariffs and significant policy shifts have also impacted the confidence of both consumers and businesses. The U.S. economy experienced a contraction in the first quarter of the year—the first decline seen in three years. Consumer spending notably increased in March, possibly as an attempt to evade upcoming tariffs, but saw a decline overall for the quarter. Simultaneously, many companies have reduced their hiring efforts.
Approximately half of the companies listed on the S&P 500 have disclosed their most recent quarterly financial results, yet attention is concentrated on how they will manage the new tariffs and shifts in consumer behavior. The situation remains uncertain for businesses and investors due to the fluctuating nature of President Donald Trump’s policies.
Trump’s administration has implemented a series of tariffs on imports from several major U.S. trade partners, prompting these countries to retaliate with their own tariffs. Additionally, Trump has rescinded or delayed some tariffs. This unpredictability presents challenges for businesses attempting to plan for the future, as well as for investors seeking stability.
Here are how some companies are reacting to the tariffs and their potential consequences:
Caterpillar: The latest profit and revenue figures for Caterpillar have declined significantly compared to last year, and they have not met Wall Street expectations. As a manufacturer of heavy machinery used in construction, mining, and energy sectors, Caterpillar provides insights into the performance and potential future of these industries. Without the tariffs, the company anticipates matching the previous year’s sales and revenue in 2025, but with tariffs, a slight decline is expected.
Stanley Black & Decker: In response to tariffs, Stanley Black & Decker implemented price increases in April and plans further hikes in the third quarter. The tool manufacturing company has revised its yearly earnings forecast due to tariffs and supply chain adjustments. CEO Donald Allan, Jr. stated they are accelerating supply chain changes and exploring all options to reduce tariff impacts while protecting business sustainability and innovation capabilities.
Newell Brands: While Newell Brands has not altered its forecast for the year, it cautioned that tariffs on China could significantly reduce profits. Known for brands like Rubbermaid and Coleman, the company expects a 20 cents per share reduction in earnings if Chinese tariffs persist, though it is taking steps to mitigate half of this impact.
Barclays: The British bank Barclays experienced a 20% rise in first-quarter profits, attributed largely to increased trading activity due to market turmoil following U.S. tariff announcements. Despite heightened income from investment banking, the bank has reserved additional funds for potential bad debts amidst economic uncertainty in the U.S., impacting its operations there. CEO C.S. Venkatakrishnan affirmed the group’s commitment to the U.S. market despite the unclear economic outlook.
GSK: Positioned to handle financial impacts from U.S. tariff changes, GSK (formerly GlaxoSmithKline) maintained its yearly financial guidance. While the Trump administration reviews potential tariff shifts in the pharmaceutical sector, GSK and other firms have lobbied the EU to permit price increases, warning that lack of investment could see Europe lagging behind the U.S.
Sysco: The uncertainty around tariffs influencing consumer spending led Sysco to lower its annual forecast. The food distributor predominantly sources its products domestically, which offers some shield from tariff costs. CEO Kevin Hourican highlighted concerns about tariffs affecting consumer confidence and sentiment.
First Solar: First Solar revised its earnings forecast downward and is considering reducing operations at some facilities due to tariffs. Currently, the company operates in India for local and U.S. markets, with Malaysian and Vietnamese facilities mainly serving the U.S. market, which may need scaling back or idling.