The impact of the tariffs imposed by President Donald Trump continues to be felt across various industries, with top executives at leading US firms warning of negative effects on their companies and the broader economy. Technology giants like Intel, footwear manufacturer Skechers, and consumer goods firm Procter & Gamble have all revised their profit forecasts downward or withdrawn them altogether, citing economic uncertainty caused by escalating trade tensions between the US and other countries.

President Trump has been using steep tariffs to rebalance trade relations with key partners, aiming to bring them to the negotiating table. However, despite these efforts, no new trade agreements have been finalized, though signs of progress have emerged in talks with South Korea.

Intel: Rising Costs and Gloomy Forecasts

The consequences of tariffs were a central theme during Intel’s investor call, where Chief Financial Officer David Zinsner noted that the probability of an economic slowdown and even a recession had increased due to “fluid trade policies in the US and beyond, as well as regulatory risks.” Intel is facing rising costs, which have directly impacted its profit and revenue forecasts, leading to a more than 5% drop in the company’s shares after those remarks.

Skechers: Uncertainty Leads to Withdrawing Forecasts

Footwear maker Skechers also disappointed investors by withdrawing its annual forecast due to the ongoing economic uncertainty. “The current environment is simply too dynamic from which to plan results with a reasonable assurance of success,” said David Weinberg, Skechers’ Chief Operating Officer, during a post-earnings call. Like its competitors Nike, Adidas, and Puma, Skechers relies on factories in China and other parts of Asia, making it vulnerable to the rising costs caused by tariffs.

Procter & Gamble: Price Hikes Ahead as Tariffs Bite

Procter & Gamble (P&G), the maker of popular brands like Ariel, Head & Shoulders, and Gillette, also downgraded its growth expectations. The company indicated that it is considering price increases to compensate for the higher costs of materials sourced from China and other countries. “We’ll be looking for every opportunity to mitigate the impact,” said Andre Schulten, P&G’s financial chief, adding that “some level of consumer pricing adjustments” will be necessary.

South Korea: Positive Signs in Trade Talks

Meanwhile, there are positive signs from trade talks held on Thursday between US and South Korean officials in Washington, DC, aimed at removing tariffs. US Treasury Secretary Scott Bessent described the meetings as “very successful” and expressed optimism that technical discussions would begin as early as next week. Both sides are working toward a “July package” before the 90-day pause on higher tariffs affecting dozens of countries expires on July 8.

Hyundai: Challenging Business Outlook Ahead

South Korean car manufacturer Hyundai announced on Friday that it had set up a task force to deal with the fallout from tariffs. “We expect a challenging business outlook to continue due to intensifying trade conflicts and other various unpredictable macroeconomic factors,” the company said. Hyundai also mentioned that it is considering shifting some of its production outside of South Korea. The company has already moved some production from Mexico to the US, which accounts for about a third of its global sales.

Ongoing Trade Talks and Limited Optimism

The ongoing discussions with South Korea may serve as a model for future agreements with other countries, but it is important to note that the broader economic situation, influenced by tariffs, is expected to remain challenging for many businesses. Companies, especially those relying on manufacturing in China and other regions, are likely to continue struggling under the new conditions set by President Trump.