Tariffs become storm in the profits of Wall Street

US companies expose billionaire damage caused by tariffs, with warnings about recession and collapse supply chains

Corporate America is calculating the cost of Donald Trump’s trade war, with executives warning about increasing spending, locked supplies chains and impacts on the world’s largest economy. Although business leaders often avoid publicly criticizing US president, they were forced to confront their rates – which include rates of 145% against China export power – in quarterly results with analysts this month.

Transportation, energy, telecommunications and construction companies were among those discussing fares with Wall Street. In their comments, the executives sounded the alarm about the consequences of Trump’s broad tariffs, echoing economists’ warnings about a recession.

“The CEOs are a very unhappy group at the moment,” said Steven Purdy, head of credit manager at the TCW fund manager.

Trump was warned about the impact of his trading fares of Walmart and Target CEOs at a White House meeting on Monday, according to a person familiar with the subject.

Although less than one fifth of the S&P 500 index Blue-Chip actions had made first quarter results connections until Tuesday, the tariffs were cited in more than 90% of them, according to FactSet. The term “recession” was mentioned in 44% of the calls, against less than 3% in the fourth quarter calls of 2024.

Norfolk Southern, a large US cargo rail group, said on Wednesday that tariffs could slow the transport of intermodal cars and containers, while coal production can cool “in the midst of significant uncertainty in export trade.” Boeing also said on Wednesday that the US trade war with China would force her to find alternative buyers for some of her planes.

Tariffs will increase the cost of gas power generators, just when demand for US electricity grows at a pace “unlike anything we have seen since the end of World War II,” said John Ketchum, CEO of Nextera Energy, owner of the country’s largest energy dealership on Wednesday.

GE Vernova gas turbine manufacturer said its costs could rise up to $ 400 million this year, while oil companies Halliburton and Baker Hughes warned that Trump’s trade war could reduce profits, disrupt supply chains, and press oil prices, causing a drilling retraction.

Baker Hughes shares fell 6.4% on Wednesday after the company said that tariffs can cost up to $ 200 million in profits before interest, taxes, depreciation and amortization this year-an impact of about 4%.

AT&T and Verizon, two of the largest US telecommunications groups, warned that tariffs can increase the price of wireless telephone and wire -oriers.

“If the fare is as tall as they say on the devices, we don’t plan to cover it in our work. It simply won’t be possible,” Verizon CEO Hans Vestberg told Analysts this week.

Boston Scientific has said the fares will cost the medical device manufacturer about $ 200 million this year, even with the increase in its profit orientation. Johnson & Johnson maintained its annual profit forecast last week, but highlighted $ 400 million in costs related mainly to medical device tariffs.

At 3M, CEO William Brown said “tariffs will be an obstacle this year.” The tape manufacturer and post-it said it will try to soften the blow by realling production and inventory in its network of 110 factories and 88 distribution centers, cutting costs and increasing prices.

“We are trying to be quite intelligent, strategic and surgical with that,” said Brown.

At the Pultegroup construction company, CEO Ryan Marshall said tariffs will add an average of $ 5,000 to the price of selling new houses.

“Whether it is the stock market volatility, concerns about tariff -induced inflation, fluctuating interest rates, or growing recession debate, April demand has been more volatile and less predictable day to day,” Marshall told analysts.

The aerospace and defense company RTX said it could have a $ 850 million impact on operating profit before taxes due to Trump tariffs if they remain until the end of the year. GE Aerospace has said it will increase prices to offset about $ 500 million in extra costs.

Executives have reacted to US commercial policy, which changes rapidly. Trump suspended the so -called reciprocal tariffs against most countries for 90 hours after entering into force while increasing tariffs over China.

He plans to exempt automakers of some rates, the Financial Times said on Wednesday.

TCW’s Purdy said CEOs are stuck in a kind of suspended animation while trade policy changes. “They don’t know if they’ll wake up in six months in a new world order or if it will look like a nightmare,” Purdy said.

With information from Financial Times*