US President Donald Trump’s reciprocal tariffs are having a significant impact on corporate earnings. Nike and Accenture have both warned that their sales will drop due to the tariffs and sliding consumer sentiment. Nike expects a double-digit percentage decline in sales, while Accenture has seen a reduction in contracts with the US government.
The European Union is trying to insulate its economy from these blows by postponing its tariffs on the US until mid-April. The EU hopes to negotiate a new deal with Trump during this time.
US markets lost momentum on Thursday, with the S&P 500 down 0.22%, while the Nasdaq Composite retreated 0.33%. Accenture shares dropped 7.3% after warning of cuts in contracts with the US government.
Meanwhile, Japan’s headline inflation rose to 3.7% year-on-year in February, easing from a two-year high. The Bank of England held its benchmark interest rate at 4.5%.
Trump has been pushing for lower interest rates, but the Federal Reserve kept rates unchanged on Wednesday. The EU will delay implementing its tariffs until mid-April as it continues to prepare for retaliation.
The postponement comes after the EU prepared a response to US tariffs worth up to $28 billion. Global markets are outperforming the US, with most global stocks in the green despite struggling US benchmarks.
Source: https://www.cnbc.com/2025/03/21/cnbc-daily-open-doge-cuts-and-tariffs-hit-accenture-and-nike-hard.html