Trade war: Corporate forecasts pulled as tariff uncertainty rattles U.S. and European firms

Tariff uncertainty forces companies to withdraw forecasts amid trade turmoil.

A growing number of major U.S. and European companies are pulling their financial forecasts as economic uncertainty and trade tensions driven by President Donald Trump’s tariff policies deepen.

As reported by The Wall Street Journal, companies including General Motors, JetBlue, Snap and Volvo have withdrawn previously issued guidance for 2025, citing the unpredictable business environment.

General Motors said the evolving nature of automotive duties has blurred its financial outlook, while JetBlue warned that softening demand is likely to weigh on the airline industry through the summer. Snap, the parent company of Snapchat, also refrained from its usual forward guidance, warning of a slowdown in advertising revenue. UPS, though not withdrawing its outlook, projected weaker shipping volumes and announced it would cut 20,000 jobs.

"The world hasn’t been faced with such enormous potential impacts to trade in more than 100 years," UPS CEO Carol Tomé told analysts. "The only thing we’re certain of is we don’t know which, if any, of our scenarios will play out."

Tomé said UPS had engaged its top 100 U.S. clients to understand their responses to new tariffs, which included strategies such as absorbing costs, passing them on to consumers, or negotiating with suppliers. The shipper is modelling various scenarios to remain flexible as conditions change.

JetBlue CEO Joanna Geraghty said the airline is "focused on successfully managing what we can control," as it considers cost-saving measures and fleet adjustments to boost profitability amid softer demand.

This caution reflects a broader corporate unease. Last week, American Airlines, PepsiCo and Procter & Gamble signalled higher costs and demand slowdowns due to the trade conflict. Meanwhile, Adidas said it would normally raise guidance after a strong quarter, but held back due to the uncertainty around tariffs.

European banks are also preparing for potential impacts. HSBC raised its expected credit losses to $900 million and warned of another $500 million in losses under a "consensus downside" scenario involving higher tariffs and slower global growth. Deutsche Bank added $148.5 million to its provisions, citing the uncertain geopolitical and macroeconomic outlook in the U.S.

Union Pacific CEO Jim Vena stood firm on previous guidance, saying, "The easy thing would have been to come in this morning and just say, listen, there’s so much noise. We’re pulling our guidance. But we have a job to do and our job is to react to whatever is thrown at us."

Nucor CEO Leon Topalian said the U.S. steelmaker has seen a 25% increase in its order backlog compared to last year. "What we’ve seen is no drop off at all in terms of order entry rates and inquiries," he said, adding that tariffs are positively affecting domestic steel demand.

Volvo withdrew guidance and announced a $1.9 billion savings plan, expecting tariffs to persist. Porsche slashed its 2025 outlook, warning it may need to raise prices further if current tariffs extend beyond May.

According to a new survey conducted by the Leadership Now Project and the Harris Poll, 84% of more than 300 senior executives expressed concern about the current political and legal climate. The uncertainty has dampened initial optimism many had at the beginning of Trump’s presidency, leading to cutbacks in spending and strategic delays.