Damian J. Troise, AP Business Writer
NEW YORK (AP) – Uncertainty continues to support the latest financial results and forecasts of businesses, large and small, as they seek to manipulate a global trading system that is significantly shaken by changes in US policy.
Tough changes in tariffs and policies are shaking the trust of consumers and businesses. The US economy shrunk in the first quarter of the year, falling for the first time in three years. Consumer spending rose in March, possibly an effort to preempt tariffs, but fell across the quarter. Meanwhile, businesses have been pulling back jobs.
Around half of S&P 500 companies report their latest quarterly financial results, but the focus is on how they adapt to tariffs and changes in consumer behavior. Due to the unfocused nature of President Donald Trump’s policy, the focus remains blurred for both companies and investors
Trump has implemented various tariffs on goods from the US’s biggest trading partners, and many of these countries have returned to retaliatory tariffs. At the same time, Trump either pulled back or postponed some tariffs. The situation is unpredictable and it is problematic for companies that are trying to plan ahead and investors looking for stability.
Here’s what businesses are saying about tariffs and potential impacts:
Caterpillar
Caterpillar’s latest profit and revenue results have fallen sharply over a year ago, and Wall Street’s forecasts have also been overlooked.
Heavy machinery manufacturers and industrial innately one of many companies that give investors uncertain forecasts. The equipment is used by the construction, mining and energy industries. Wall Street often uses Caterpillar’s financial position and is projected as a measure of how well these industries are performing, or potential performance that could run in a quarter and one year.
With no impact from tariffs, the company expects its revenue and revenue for 2025 to coincide with the previous year. With the current tariffs in place, revenue and revenue are expected to be slightly soaked.
Stanley Black and Decker
Stanley Black & Decker said it plans to raise prices in April and raise prices again in the third quarter of the year in response to tariffs.
Manufacturers of drills and other tools trimmed annual revenue forecasts based on tariff impacts and planned adjustments to the supply chain.
“In light of the current environment, we are trying to accelerate adjustments to our supply chain, investigate all options and balance the need to protect our business with our ability to innovate for years to come, while minimizing the impact of tariffs on our end users,” CEO Donald Aunt Jr. said.
Newell Brand
Newell Brands has not changed its current financial forecast for the year, but warned that tariffs on China could get a big bite from profits once they stand there.
The company manufactures ubiquitous consumer goods under brand names such as Rubbermaid, Paper Mate and Coleman. If they stand, tariffs on China are expected to shave 20 cents per share from profits. Newell Brands said they are already working on actions that could reduce the impact in half.
Barclays
British Bank Barclays earned its profits primarily at the fifth spike, as a result of a boom in trading activity caused by financial market turmoil following the array of tariffs announced by President Donald Trump.
Barclays said revenues of 16% increased to £4 billion ($5.3 billion) across the investment banking sector, outpacing the hits of trades from tariffs and economic uncertainty. As a result. Net profit increased 20% to £2.1 billion.
Still, the bank said it has secured more cash for bad debts due to concerns about the US economy as a result of uncertainty. Barclays is exposed to tariff calamities and the US economy through its large-scale operations in the United States with 20 million customers.
CEO CS Venkatakrishnan said the group is “very committed” to US businesses despite the cloudy outlook for the US economy.
GSK
GSK, a UK-based drug maker previously known as Glaxosmithkline, said it is “well located” to address the economic impacts of changes to US tariff regulations.
The company has maintained financial leadership this year despite uncertainty about US tariffs, and the Trump administration is currently investigating whether to change tariff policies in the drug sector.
GSK has recently been one of the pharmaceutical companies that has recently called on the European Union to allow prices to rise amid uncertainty over sector tariffs, warning that Europe will be further behind the US without stronger investments.
sysco
Sysco cut its forecast for the year amid uncertainty about how tariffs will affect consumer spending.
Food distributors purchase more than 90% of their products in the countries they operate. It is less exposed to the effects of tariff costs than other industries, it said.
“Our main concern is the obvious negative impact of tariff noise and volatility on consumer trust and emotions,” CEO Kevin Hoylican said in a conference call with analysts.
First Solar
First Solar is considering reducing its revenue forecast for the year and idling several facilities due to the impact of tariffs.
Solar Power Technology Company says that as it currently operates international manufacturing facilities in India, manufacturing facilities in Malaysia and Vietnam are almost exclusively serving the US market, where it is necessary to cut operations and to bring these facilities to idle.
AP writer Panagiotis Pylas contributed to this report.
Original issue: April 30, 2025, 1:21pm EDT
