Global firms have reported costs exceeding $35 billion to date due to the impact of US tariffs. However, thanks to new trade agreements, many companies are lowering their initial estimates.
US President Donald Trump’s trade war has pushed tariffs to their highest levels since the 1930s. Yet, the veil of uncertainty that has paralyzed markets is beginning to lift.
As companies become more predictable of costs, they are planning price increases and revising their strategies. According to Reuters data, firms are forecasting a total impact of $21 to $23 billion for 2025 and approximately $15 billion for 2026. While these figures are slightly higher than the total estimate of $34 billion announced in May, the majority of the increase stems from Toyota’s new estimate of $9.5 billion.In contrast, companies such as Sony, Rémy Cointreau, and Pernod Ricard have reduced their previous “worst-case scenario” estimates following agreements with the EU and Japan.
Stellantis CEO Antonio Filosa announced a $13 billion investment plan in the US, saying, “Tariffs are now part of the business equation. We will learn to manage them.”
Consumer and Manufacturing Sectors Most Affected
Nike increased its estimate of losses from tariffs to $1.5 billion due to its reliance on its Asian supply chain. Tefal manufacturer SEB and H&M also issued warnings due to demand contraction and profit margin pressure.
Automotive giants such as Ford, Volkswagen, Toyota and Stellantis reported billions of dollars in tariff costs.
However, the tariff reductions planned by the Trump administration for US production have boosted optimism in the sector.Pharmaceutical giants Pfizer and AstraZeneca have begun working on production agreements that provide tariff exemptions to reduce cost pressure.
