Major U.S. corporations are feeling the sting of recent tariff policies, with quarterly earnings reports revealing billions in losses linked to trade measures. General Motors reported a 35.4% year-over-year decline in net profits, attributing $1.1 billion of its $1.9 billion Q2 losses directly to tariff-related pressures. The auto sector appears particularly vulnerable, as Stellantis warned of potential first-half losses reaching $2.7 billion due to similar challenges.
Citibank analysts underscored the widening impact, noting that new tariff escalations could compress profit margins across multiple industries. This development comes as businesses grapple with supply chain adjustments and pricing strategies in response to evolving trade policies.
While the immediate effects dominate corporate earnings calls, economists are watching for secondary impacts on employment, consumer prices, and cross-border investment flows. The situation highlights the complex interplay between trade policy and corporate performance in an increasingly interconnected global economy.
