The United States’ imposition of steel and aluminum tariffs on its trading partners has sent shockwaves through global markets, with businesses from sportswear to luxury cars and chemicals warning of a devastating impact on consumer sentiment and industrial health.
US President Donald Trump’s decision to increase tariffs on all U.S. steel and aluminium imports took effect on Wednesday, prompting swift retaliatory measures from Europe and Canada. The move has left industries reeling, with companies struggling to comprehend the wild swings in Washington policies and their implications for everyday decisions.
Puma, a German sportswear maker, announced job cuts and highlighted trade disputes as a challenge, as its shares lost almost a quarter of their value. Porsche, a luxury car manufacturer, warned it may hike car prices due to the tariffs, while JPMorgan predicted a 40% chance of U.S. recession this year.
Analysts say that industries are unable to plan with confidence, with automakers facing uncertainty over tariffs on imports from Canada, Mexico, or Europe. The constant flip-flopping over tariffs is “paralysing industries,” according to Franklin Templeton’s chief market strategist, Stephen Dover.
The US tariffs have already driven prices for aluminium users in the United States to record highs, while EU tariffs on U.S. spirits and wine will be “devastating” for the liquor industry. Shares of US beauty companies, including Estee Lauder, also fell after a French cosmetics industry body warned of an enormous risk of retaliation by the U.S.
As the trade situation continues to escalate, businesses are warning of lasting damage to the United States as an investment destination if the administration undermines trust in governance. With more than 900 U.S. companies mentioning tariffs on earnings calls or at investor events since the beginning of the year, it’s clear that global trade woes are far from over.
Source: https://www.reuters.com/business/retail-consumer/corporate-gloom-deepens-new-trump-tariffs-take-effect-2025-03-12