Topline
Stellantis and Mercedes announced on Wednesday they would withdraw their full-year financial guidance for 2025, becoming the latest companies to cut or pull earnings forecasts in recent weeks as they cite market uncertainty aggravated by President Donald Trump’s tariffs.
Several companies have pulled their full-year outlook for 2025, with many citing market uncertainty … More
Timeline
Stellantis suspended its full-year financial guidance for the 2025 fiscal year because of “tariff-related uncertainties,” and noted the company was “highly engaged with policymakers” about tariffs and has “[taken] action to reduce impacts.”
Mercedes pulled its full-year outlook for the 2025 fiscal year because the “volatility with regard to tariff policies” had become “too high to reliably assess” the automaker’s business development for the remainder of the year, adding estimates could not be made “with the necessary level of certainty.”
UPS pulled its full-year guidance after previously forecasting revenue of $89 billion for 2025, citing the “current macro-economic uncertainty” as the shipping giant also announced it would lay off 20,000 workers by the end of the year.
General Motors announced it would reassess its financial guidance for 2025 as earlier estimates don’t include the “potential impact of tariffs,” which CFO Paul Jacobson reportedly suggested could be “significant.”
Kraft Heinz CEO Abrams-Rivera said the company had lowered its full-year outlook as the “operating environment remains volatile,” and they would monitor the “potential impacts from macro-economic pressures such as tariffs and inflation.”
JetBlue CEO Joanna Geraghty announced the company had pulled its full-year outlook for 2025 because of “macroeconomic uncertainty,” while JetBlue president Marty St. George said the airline expected “softened demand” to continue.
Snap declined to issue guidance for its second quarter, as the company behind Snapchat said “uncertainty with respect to how macro economic conditions may evolve in the months ahead” could impact advertising demand.
Volvo warned 2025 would be a “challenging and transition year” as a result of “macroeconomic, geopolitical and market developments,” including the effects of tariffs on profits, while pulling its guidance for the year and 2026.
PepsiCo lowered its earnings forecast for 2025 as the company expects “more volatility and uncertainty,” CEO Ramon Laguarta said, as PepsiCo said it faces higher supply chain costs because of tariffs, “elevated macroeconomic volatility and a subdued consumer backdrop.”
Procter & Gamble, the owner of Tide and Charmin, among others, lowered its sales growth projections for the year despite previously expecting growth up to 4% in 2025, while CEO Jon Moeller warned of a “challenging and volatile consumer and geopolitical environment.”
American Airlines CEO Robert Isom told investors the airline was “taking a very cautious, even a negative approach to growth” after pulling its full-year guidance, while CFO Devon May said economic uncertainty worsened by Trump’s tariffs brought “significant weakness in our main cabin demand.”
Skechers pulled its full-year outlook while citing “macroeconmic uncertainty stemming from global trade policies,” as CFO John Vandemore likened the economic environment to the pandemic.
Thermo Fisher Scientific withdrew its full-year profit forecast while the medical equipment maker expects to take a $400 million hit in sales to China, as Trump’s tariffs would likely raise the cost of parts the company sources in China.
Chipotle, which reported same-store sales well below analyst expectations, according to FactSet, lowered its full-year same-store sales growth for the year because the company expects customers to spend less as concerns about the economy became “overwhelming,” CEO Scott Boatwright told investors.
Alaska Airlines pulled its full-year 2025 guidance because of “recent economic uncertainty and volatility.”
Southwest Airlines, while maintaining some of its projections for its second quarter, withdrew guidance for 2025 in its first-quarter report while citing “macroeconomic uncertainty” that makes it “difficult to forecast given recent and short-lived booking trends.”
United Airlines held its full-year forecast, though the company also issued a second guidance featuring far lower earnings in 2025 because United believes the economy is “impossible to predict this year with any degree of confidence.”
Logitech withdrew its outlook for its 2026 fiscal year because of the “continuing uncertainty surrounding the tariff environment.”
Walmart announced it would pull forecasts for operating income in its upcoming first-quarter report on May 15, as the “range of outcomes” grew as Trump’s tariffs were implemented in trade.
Delta, after previously cutting first-quarter earnings projections by 40 to 50 cents a share, pulled its full-year guidance “given the broad macro uncertainty,” as it was “premature to project the full year,” the airline and CEO Ed Bastian said.
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Have Trump’s Tariffs Resulted In Layoffs?
Several companies have announced layoffs while citing the impact of Trump’s tariffs. Mack Trucks and Volvo Group told Forbes earlier this month that a combined 800 employees were laid off at facilities on the East Coast, with both automakers citing “market uncertainty,” the likelihood of “possible regulatory changes” and the “impact of tariffs.” Stellantis and Estée Lauder also announced layoffs. Goldman Sachs wrote in a note on April 15 that about 100,000 manufacturing jobs would be created because of Trump’s tariffs, though they would also likely remove up to 500,000 jobs across all industries.
Key Background
Trump levied tariffs across U.S. trade partners during his so-called “Liberation Day” earlier this month. A 90-day pause on the tariffs was announced on April 9, though a baseline 10% would remain, except for China, whose imports face 145% tariffs. The White House said Tuesday that Trump would also offer a reprieve to automakers by exempting them from paying additional tariffs, like those on steel and aluminum. Some industry leaders have said Trump’s tariffs would raise consumer prices and create market volatility, including Ford CEO Jim Farley, who warned Trump’s 25% tariffs on imported cars and car parts would “blow a hole in the U.S. industry that we’ve never seen.” Vice President JD Vance said the Trump administration is trying to “rebalance global trade” as the U.S. carries out tariff negotiations. Vance suggested the U.S. “want[s] to partner with people and countries” to create “a system of global trade that is balanced, one that is open, and one that is stable and fair.”
Further Reading
Trump Offers Automakers Tariff Reprieve—Latest Big Tariff Flip-Flop Since ‘Liberation Day’ (Forbes)
