Major US companies, including PepsiCo, American Airlines, Chipotle, IBM, and Procter & Gamble, have reported that President Donald Trump’s erratic trade policies are hurting consumers and the economy.
Gatekeepers News reports that the companies cited increased costs, reduced sales, and uncertainty due to tariffs imposed on imported goods.
PepsiCo CEO Ramon Laguarta said, “We expect more volatility and uncertainty, particularly related to global trade developments, which we expect will increase our supply chain costs.” The company lowered its full-year profit outlook.
Chipotle reported its first drop in quarterly sales at stores open for at least a year since the Covid-19 pandemic, blaming tariffs on imported ingredients like beef from Australia and avocados from Peru. Procter & Gamble slashed its sales guidance for the year, saying tariffs will likely cause prices to rise.
“Tariffs are inherently inflationary,” Procter & Gamble CEO Jon Moeller said. American Airlines also reported that lower-income Americans are flying less due to economic pressure.
The trade policies have also impacted hotel and tourism industries, with fewer Canadian tourists visiting the US. The Federal Reserve reported a decline in international reservations and visits from Canadians.
The trade war has sent the stock market plunging, with the Dow dropping 9.1% in the first three weeks of April. The International Monetary Fund warned that Trump’s trade war will slow down global economic growth this year.
Citadel CEO Ken Griffin, a billionaire supporter of Trump, criticized the president’s trade policies, saying, “The United States was more than just a nation. It’s a brand… And we’re eroding that brand right now.”
