Trump tariffs rattle US businesses: Retail, auto, tech giants warn of profit shocks

A growing number of US companies across key industries are raising alarm over the financial toll of President Donald Trump's tariff policies, as rising costs and uncertain global trade conditions threaten to derail earnings, pressure consumers, and disrupt supply chains.

Apple faces $900 million in additional costs

Apple CEO Tim Cook said in a recent quarterly earnings call that while the company had limited the immediate impact of tariffs by shifting supply chains and managing inventory, the longer-term effect is more severe. "Assuming the current global tariff rates, we estimate the impact to add $900 million to our costs (this quarter)," Cook noted. 

GM expects up to $5 billion in tariff exposure

In the auto sector, General Motors (GM) reported that it is facing $4 billion to $5 billion in potential tariff-related exposure this year. In a letter to its shareholders, GM cited supply chain pressures and rising input costs stemming from the escalating trade tensions.

Retail and dining chains struggle with consumer pullback

The retail sector is already feeling the strain. McDonald's has reported a surprise dip in global sales, describing the current landscape as "the most difficult market environment in recent years." The company emphasized that "low and middle-income consumers, in particular, are being weighed down by the cumulative impact of inflation and heightened anxiety about the economic outlook."

Other major food service brands have also issued warnings. Domino's said its delivery business continues to suffer due to "macro pressures" affecting low-income households, a key consumer base for its offerings.

Footwear industry says tariffs are a 'threat to survival'

The footwear industry has taken its concerns directly to the White House. In a letter addressed this week to the US president, the Footwear Distributors and Retailers of America urged the government to exempt shoes from the so-called reciprocal tariffs, calling them "a threat to the survival of the industry".

The letter, signed by 76 major brands including Nike, Adidas, Skechers and Under Armour, warned that companies producing affordable shoes are unable to absorb or pass on the additional costs. 

"We are deeply concerned about imminent US footwear job losses, added costs for consumers, and reduced consumer spending that will fundamentally hamper our industry and harm the entire US economy," the letter stated. It also noted that many orders have already been put on hold, risking a footwear shortage for American consumers.