US companies, including major brands like PepsiCo, American Airlines, and Chipotle, have expressed concerns over President Donald Trump’s trade policies, which they say are leading to reduced consumer spending, higher costs, and economic uncertainty.
The companies’ quarterly earnings reports revealed that tariffs on imported goods, particularly those from China, are taking a toll on their businesses. PepsiCo CEO Ramon Laguarta stated that the company expects increased volatility in global trade developments, which will lead to higher supply chain costs.
Tariffs have also affected the airline industry, with American Airlines reporting lower financial guidance for the year due to economic uncertainty. The company plans to pass off the cost of new planes to consumers, particularly those who are most price-sensitive.
The impact on tourism is also significant, with hotels and leisure industries experiencing a decline in Canadian tourists due to Trump’s policies. Economists warn that there is an elevated risk of a US recession this year, with some estimating a 50-70% chance of occurrence.
Major business leaders have publicly criticized Trump’s trade approach, calling it detrimental to the country’s standing in the world. The stock market has also plunged, with the Dow dropping 9.1% in April, its worst performance since 1932.
While Trump’s administration argues that tariffs are necessary for national security and economic growth, critics argue that they are causing more harm than good. As one billionaire supporter of Trump noted, “The United States was more than just a nation. It’s a brand… And we’re eroding that brand right now.”
Source: https://edition.cnn.com/2025/04/25/business/chipotle-pepsi-tariffs-business/index.html