Uncertainty over tariffs and an unpredictable trade war is weighing heavily on companies as they report their latest financial results and try to give investors financial forecasts.Some tariffs remain in place against key U.S. trading partners, but others have been postponed to give nations time to negotiate. The tariff and trade picture has been shifting for months, sometimes changing drastically on a daily basis. Those shifts make it difficult for companies and investors to make a reliable assessment of any impact to costs and sales.On Tuesday, Treasury Secretary Scott Bessent said he expects a “de-escalation” in the trade war between the U.S. and China, but cautioned that talks between the two sides had yet to formally start.Here’s how several big companies are dealing with the tariff confusion:
Chipotle
Chipotle Mexican Grill said Wednesday that its costs are rising due to the tariffs.The Tex-Mex chain said it gets some beef from Australia and packaging from Vietnam, Indonesia and Thailand. It also sources avocados from Colombia and Peru. All are now subject to a 10% tariff.The tariffs may also impact the cost of building new restaurants, since items like shelving and parts for equipment come from China, Chipotle Chief Financial Officer Adam Rymer said during a conference call with investors. But Rymer said the impact of the tariffs on imports from China is harder to predict. This week, Trump administration officials have said they expect a “de-escalation” in the trade war between the U.S. and China.Chipotle reported weaker-than-expected revenue in the January-March period and lowered its outlook for full-year same-store sales.CEO Scott Boatwright said concern about the economy was the “overwhelming reason” consumers reduced their visits to Chipotle during the quarter. That trend has continued through April, he said.
Tesla
Tesla is in a better position than most car companies to deal with tariffs because it makes most of its U.S. cars domestically. But it still sources materials from other nations and will face import taxes.The bigger impact will be seen in the company’s energy business. The company said the impact will be “outsized” because it sources LFP battery cells from China.The broader trade war could also hurt the company as China, the world’s largest electric vehicle market, retaliates against the U.S. Tesla was forced earlier this month to stop taking orders from mainland customers for two models, its Model S and Model X. It makes the Model Y and Model 3 for the Chinese market at its factory in Shanghai.CEO Elon Musk, an adviser to President Donald Trump, on Tuesday reiterated that he believes “lower tariffs are generally a good idea for prosperity.” But he added that ultimately the president decides on what tariffs to impose.
Akzo Nobel
The Amsterdam-based maker of paints and coatings for industrial and commercial use said the big risk from tariffs could come in the form of lower demand for its products.The company said almost all sales of finished goods in the U.S. were locally produced, with the majority of raw materials locally sourced.“Over the years, we deliberately localized both our procurement and production in the U.S.,” said CEO Gregoire Poux-Guillaume, in a conference call with analysts. “We also largely run China for China and use the rest of Asia instead as an export base.”The company’s products range from paints and coatings for the automotive industry to the do-it-yourself homeowner. Broader tariffs could squeeze consumers and businesses and hurt sales.
Boston Scientific
The medical device maker said it expects most of the effecs of tariffs to hit the company during the second half of the year, but that it can absorb the impact.The company raised its earnings and revenue forecasts for the year, despite the tariffs. It estimates a $200 million impact from tariffs in 2025, but said it can offset that through higher sales and reductions in discretionary spending.The company said it has a long-standing supply chain around the globe and has made significant investments in the U.S.
Boeing
Boeing said much of its supply chain is in the U.S. and many of its imports from Canada and Mexico are exempt from tariffs under an existing trade agreement.The company does have suppliers in Japan and Italy, but it expects to recover those tariff costs. The net annual cost of higher tariffs on the supply chain is less than $500 million.A bigger concern is the potential for retaliatory tariffs, which could impact its ability to deliver aircraft. China, a key target for U.S. tariffs, has retaliated in part by no longer accepting deliveries of Boeing aircraft.
AT&T
AT&T, like its peers in the telecommunications sector, faces higher costs for cellphones and other equipment.The company said it believes it can manage anticipated higher costs, based on the current pause in some tariffs and its supply chain.“The magnitude of any increase will depend on a variety of factors, including how much of the tariffs the vendors pass on, the impact that the tariffs have on consumer and business demand,” said CEO John Stankey, on a conference call with analysts.
Damian J. Troise, AP Business Writer
