Impact of Trump’s Trade War: Companies Lose $34 Billion Amid Ongoing Uncertainty

President Donald Trump’s trade war has caused businesses to lose over $34 billion in sales and higher costs. This impact is expected to grow as ongoing uncertainty about tariffs makes decision-making difficult for many large companies around the world.

Businesses such as Apple, Ford, Porsche, and Sony have reduced their profit forecasts, and most companies report that Trump’s unpredictable trade policies make it impossible to predict their costs accurately.

The $34 billion loss comes from 32 companies in the S&P 500, 3 in Europe’s STOXX 600, and 21 in Japan’s Nikkei 225 indices. Economists warn that the real cost could be much higher than these figures suggest. They predict that businesses may face even more significant effects, such as lower spending from consumers, rising inflation, and increased costs from changes in supply chains.

Even though there has been some temporary relief due to a pause in the U.S.-China trade conflict, the final outcome remains uncertain. Companies are focusing on strengthening their supply chains, increasing domestic production, and looking for new markets. However, these actions will likely increase their costs.

During the most recent earnings season, many companies, including Walmart, Volvo Cars, and United Airlines, either cut their forecasts or suspended them entirely due to the unpredictability of the trade environment. Tariffs, particularly on materials like aluminum and electronics, have raised production costs, especially in industries like automotive manufacturing and consumer goods.

In the long term, companies like Kimberly Clark and Diageo have faced significant challenges due to tariffs, with some announcing plans to invest in U.S. production or cut costs to cope with the financial strain.