Report: Trade War Has Cost Companies Over $34 Billion
The trade war sparked by new U.S. tariffs has reportedly cost companies over $34 billion in lost sales and higher costs.
Reuters made that estimate in a report posted Thursday (May 29), saying it got that figure from estimates made by 32 companies whose stocks are listed in the U.S., three listed in Europe and 21 listed in Japan and shared in company statements, regulatory filings, and conference and media call transcripts.
It added that most companies said it is impossible to estimate costs due to the ongoing changes in trade policy.
The estimate does not include the ripple effects of potential lower consumer and business spending and higher inflation expectations, according to the report.
Reuters also found that during the current earnings season, at least 42 companies cut their earnings forecasts and 16 withdrew or suspended their guidance due to the difficulty of predicting the macro environment.
President Donald Trump has argued that the tariffs will cut America’s trade deficit and add jobs by encouraging companies to open facilities in the U.S., according to the report.
“The Administration has consistently maintained that the United States … has the leverage to make our trading partners ultimately bear the cost of tariffs,” White House spokesperson Kush Desai said in the report.
It was reported April 24 that major U.S. corporations are raising serious concerns that the constantly shifting trade policies are spooking customers and throwing business planning into disarray.
While the majority of executives expressed concern, some said they believe tariffs will create a level playing field.
PYMNTS Intelligence’s March 2025 Certainty Project report, “Tariffs and Business Uncertainty: The Current State of Play,” found that escalating trade tensions marked by the imposition of tariffs have introduced a wave of uncertainty across various sectors, notably impacting mid-sized companies.
The report found that 60% of middle-market chief financial officers anticipate that tariffs will exacerbate economic unpredictability and complicate planning processes. Among firms already experiencing high uncertainty, 77% expressed heightened concerns.
The apprehension is not confined to the goods sector; service-oriented companies also foresee indirect repercussions, as increased prices on goods could reduce consumer spending on services.
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