The 'Farce' of Trump's Tariffs, 40 Companies' Financial Reports 'Suffer'

It's almost going to ruin him

Recently, global companies have entered the earnings season, but the earnings data is like a roller coaster, leaving people confused, as if we are back in the pandemic era. And the 'culprit' behind all this is Trump’s ever-changing tariff policy!

You see, JetBlue Airways' iconic blue logo is still there, but because Trump's tariff policies change daily, it has suspended its 2025 financial forecasts. American Airlines, Delta Air Lines, and Southwest Airlines have also followed suit, reluctantly retracting their financial projections. Reuters reporters revealed that about 40 global companies have withdrawn or lowered their earnings guidance during the first quarter earnings season.

The automotive industry is particularly a 'disaster zone'. Companies like Stellantis, General Motors, and Mercedes-Benz have not been spared, all successively retracting their financial forecasts. Mercedes-Benz's net profit plummeted 43% in the first quarter of this year, and the president of the German Automotive Industry Association, Müller, helplessly stated that over 80% of its members have been impacted by U.S. tariffs. General Motors also predicts that tariffs could result in a loss of $4 to $5 billion for the company this year, due to a significant increase in the cost of imported parts. It’s worth noting that last year, the U.S. imported over $197 billion in automotive parts, and with the tariffs, the average cost per vehicle has increased by about $4,000; American consumers will likely have to foot the bill for rising car prices.

Moreover, according to the China-U.S. April Manufacturing Purchasing Managers' Index, the global economy is slowing down simultaneously. In the face of the uncertainty brought by tariffs, Federal Reserve Chairman Powell is likely to maintain a hawkish tone on Wednesday. When will Trump’s tariff policy, this economic 'farce', finally come to an end? We shall see.