Major companies face a difficult task in estimating the impact of
tariffs on their business
[April 30, 2025] By
DAMIAN J. TROISE
NEW YORK (AP) — Executives at some of the world's biggest companies are
faced with the tricky task of explaining how President Donald Trump's
tariffs are impacting their business as they discuss the latest
financial results. Some are making their best estimate based on what
they know at the moment; others are pulling their outlooks altogether.
The only certainty is that they'll use a variation of the phrase
“uncertain times” at least once as they speak with analysts.
Trump has imposed tariffs against key U.S. trading partners, while also
postponing other tariffs to give companies a chance to negotiate. The
process has left business and consumers uncertain amid a constantly
shifting landscape. Over the last few months, tariffs have been
announced and in some cases withdrawn within days.
Here's what some of those companies are saying:
Kraft Heinz
Kraft Heinz is cutting its earnings forecast for the year, citing a
volatile environment.
The maker of food staples, including its namesake ketchup and boxed
macaroni & cheese, is under pressure along with other food companies as
inflation continues squeezing consumers. Tariffs could force companies
to raise prices on consumer staples and food products, further fueling
inflation.
“We’re closely monitoring the potential impacts from macroeconomic
pressures such as tariffs and inflation,” said Kraft Heinz CEO Carlos
Abrams-Rivera, in a statement.
JetBlue Airways
JetBlue Airways pulled its financial forecast for the year over worries
about slowing travel demand as consumer confidence weakens.
The travel sector, including airlines, faces an indirect impact from
tariffs. Tariffs threaten to raise prices on a wide range of consumer
goods, worsening inflation and squeezing consumers. Discretionary
spending on travel is often among the first budget items that households
consider trimming or cutting completely in order to deal with higher
costs elsewhere.
“In the first quarter we saw booking strength from January deteriorate
into February and worsen into March,” said Marty St. George, JetBlue’s
president, in a statement.
JetBlue said it is considering capacity reductions, fleet retirement and
other costs savings to help boost profits and preserve cash.
A report from the Conference Board Tuesday showed that Americans’
confidence in the economy slumped for the fifth straight month to the
lowest level since the onset of the COIVD-19 pandemic.
Coca-Cola
Coca-Cola said the impact of tariffs on its business is likely to be
“manageable.”
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 Still, the beverage giant moderated
expectations for its full-year profit. It now expects full-year
adjusted earnings to grow 7% to 9%, down from 8% to 10% previously.
Coke earned $2.88 per share in 2024.
Coke and other beverage makers are facing a 25%
tariff on the aluminum they use for cans, among other items. The
company has said that it could shift aluminum suppliers, rely more
heavily on plastic or glass bottles and take other measures to
counteract the tariffs. Last week, rival PepsiCo lowered its
full-year earnings expectations due to the impact of tariffs.
General Motors
General Motors is reassessing its expectations for 2025 due to auto
tariffs.
The automaker is pushing back its conference call to discuss its
guidance and quarterly results until Thursday, so that it can assess
potential changes to the Trump tariffs. On Tuesday, the White House
said Trump will sign an executive order to relax some of his 25%
tariffs on autos and auto parts.
GM's current forecast for earnings of $11 to $12 per share doesn't
consider the potential impact of tariffs.
The auto tariffs could be particularly painful because major
carmakers have production spread throughout North America. Parts and
the assembly process often cross multiple borders several times
before a car is complete. Carmakers face higher costs and that could
mean higher prices for consumers, prompting them to delay or forgo
purchases.
UPS
UPS said that it modeled several different scenarios for how the
year might play out because of the uncertainty over tariffs.
China remains a key concern for the package delivery company. Many
of the small businesses that UPS deals with rely on China for their
goods. There is a universal tariff of 10% for imports to the U.S.,
but tariffs on imports from China are as high as 145%.
“It’s China that’s the real uncertainty, I think, facing the
economy,” said CEO Carol Tome, in a conference call with analysts.
The rest of the world at 10% tariffs is manageable, she said.
Sherwin-Williams
Sherwin-Williams said it expects demand to remain choppy at least
through the first half of the year.
The paint maker reaffirmed its earnings forecast for the year. It
said about 80% of is revenue is in the U.S. and the “vast majority”
of its raw materials are sourced in the region where it makes its
products. That leaves it less exposed to tariff impacts.
___
AP Business Writers Dee-Ann Durbin and Michelle Chapman contributed
to this report.
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