Damian Troise, Associated Press
NEW YORK (AP) – Companies from a wide range of industries struggle to assess the impact of tariffs due to constant uncertainty about whether taxes will be next imposed or deferred, sometimes daily or weekly, and where taxes will be imposed. Some tariffs continue to exist on major US trading partners, while others have been postponed to allow states time to negotiate.
As a result, companies have made somewhat volatile financial forecasts during their latest revenue updates.
Here’s how some large companies are dealing with tariff disruptions:
Kimberly Clark
Irving, Texas makes Huggie, Kleenex and other personal care and home staples. It expects tariffs to add $300 million in costs, warning about fixed annual income.
“The current environment means greater costs between the global supply chain earlier this year and the year’s forecast,” CEO Michael Hsu issued a statement on Tuesday following the company’s latest revenue results.
Approximately 20% of Kimberly Clark’s US costs are subject to customs duties. The majority of the impact of the estimated $300 million costs is driven by US tariffs on China. The company is working to shift parts of its supply chain to reduce costs.
3m
William Brown, CEO of 3M Co., the maker of adhesives, coatings, Scotch tape and post-it notes, admitted that “customer duties will be a headwind this year.”
The company stuck to its full-year forecast for profits of between $7.60 and $7.90 per share, excluding the impact of tariffs. However, 3M included slides with “tax impact sensitivity” in the analyst presentation. This said it could cut from 20 cents to 40 cents per share after considering measures that would reduce the blow from tariffs somewhat. These steps include cost reductions and “selective price increases, if feasible.”
Brown also said in a conference call that the company is considering alternative production sites from different countries of origin to try to minimize the impact on tariffs.
RTX
While most of RTX’s industrial base and supply chain is located in the US, tariffs are poised to hurt the defense companies behind missile and radar systems.
RTX expects a cost impact of up to $800 million from tariffs imposed on Canada, Mexico, China and other countries. We do not include any potential impacts in our revenue forecasts.
“Generally speaking, the aerospace and defense sectors operate in a tax-free environment,” President Christopher Cario said during a conference call with analysts. “It has been for decades to work for an industry that maintains one of the biggest trade surpluses in American manufacturing.”
GE Aerospace
Makers of jet engines and aviation systems are also used to low trade barriers within the aviation sector. The company is currently expecting a tariff cost of around $500 million, hoping to mitigate some of the impact through programs and strategies such as expanding the foreign trade zone.
“We will continue to advocate for an approach to reestablish zero tariffs in the aviation sector and ensuring a level playing field for the US aerospace industry,” CEO H. Lawrence Culp Jr. said in a conference call with analysts. “In the meantime, increased tariffs will incur additional costs for us and our supply chain.”
FlexSteel Industries
Furniture companies were able to see more damage from the recession in tariffs and consumer spending.
FlexSteel has moved from China, while Vietnam supports roughly 55% of its revenue, while its business in Mexico supports almost 40% of its revenue.
The currently delayed 46% mutual tariff rate in Vietnam “has a major impact on both FlexSteel’s business and the overall U.S. furniture industry,” Derek Schmidt, president and CEO, said in a conference call with analysts.
These broader impacts include the weakness of the US economy caused by stunted consumer spending. The company expects revenues of between $109 million and $166 million for the current quarter, but could change as tariffs and consumer demand change.
Original issue: April 22, 2025, 2:54pm EDT
