Product manufacturers, from sportswear to luxury cars and chemicals, painted a gloomy image on Wednesday of consumer and industrial health, reaching the prices of the actions and increasing concerns about the damage of the commercial wars of the president of the United States, Donald Trump.
The increase in rates in all the imports of steel and aluminum in the United States entered into force on Wednesday, since Trump intensified his campaign to reorder global trade in favor of the United States. Europe with retaliation quickly.
Trump's plans for tariffs, and their round trip implementation since he assumed the position in January, have altered car industries to companies and energy investors and unnecessary. The concerns that the increase in costs revive inflation, and that the agrium feeling of the consumer could announce a recession of the United States, have caused the stock markets to submerge.
At a grain conference on Tuesday in Carlsbad, California, the news of Trump's steel and aluminum tariffs in Canada extracted groans from the Corporate Agriculture Executives Room, grain and merchants processors. Whipsaw's rhythm of policy changes that affect their industry has caused the last six weeks to seem much longer, many told Reuters.
“Almost everyone in the economy is struggling to understand wild swings in Washington's policies and their implications for daily decisions,” said Stephen Dover, head of the market manager of the Franklin Templeton asset manager.
The Flip-Floping constant on rates is the paralyzing industries. Automobile manufacturers, for example, cannot plan, while there is a threat of 25 percent tariffs in the components made in Canada or Mexico.
“No reasonable car executive can make such investments if expected yields can be eliminated in the blow of a pen,” said Dover.
The Porsche in Germany said Wednesday that he was evaluating how he could transmit to consumers the cost of possible rates, which is expected to be 25 percent for US imports in Europe, without pressing their margins. That implies that prices could be increased to compensate for any drop in unit sales.
“For now, we hope there are solutions that lead to a sensible tariff regime between regions,” said Porsche Jochen Breckner CFO in a press call.
Get daily national news
Get the main news, political, economic and current headlines of the day, delivered to your entrance tray once a day.
Two main South Korean steel manufacturers said they were considering options, including the possible investment in operations in the United States as metal tariffs entered into force.
The Algoma de Canada's steel stopped Canada's steel exports to the United States until Thursday, when Canadian ministers are expected to meet their American counterparts in Washington. CEO Michael García called “very worrying” rates.
Speaking about French television hours before aluminum rates came into force, Airbus CEO, Guillaume Faury, warned about a commercial “conflagration” as the world descends to Teta's measures per eye.
“Some of my suppliers can be affected and we are beginning to see some interruptions,” he said, adding: “We are in a commercial war and when a commercial war begins, it tends to sustain and feed oneself.”
Until now, the aerospace industry has not seen a significant direct impact, but many of its suppliers are found in Mexico, Canada and China, which have been attacked by previous tasks or tariff warnings.
JPMorgan's chief economist Bruce Kasman said he saw a 40 percent probability of a recession of the United States this year, which would increase to 50 percent if Trump follows the threats to impose reciprocal tariffs in April. He also warned of lasting damage to the United States as an investment destination if administration undermines governance confidence.
When asked about a recession resulting from his commercial policies, Trump said Tuesday: “I don't see her at all.” On Monday, he had refused to govern one.
The gains of the German sportswear manufacturer Puma and the owner of Zara, Inditex, underlined the concerns that the uncertainties about trade are beginning to stop US spending. The actions in Puma, which highlighted commercial disputes as a challenge and announced employment cuts, lost almost a quarter of their value.
France, Spain and Italy requested that the European Commission exclude wine and spirits from the list of American products aimed at rates, an executive of a great European producer of spirits said on Wednesday. EU tariffs on American spirits such as Bourbon whiskey will be “devastating” for the liquor industry, commercial associations said on both sides of the Atlantic.
The actions of American beauty companies, including Estee Lauder, fell after an organism of the French cosmetics industry said there was a “enormous” risk of retaliation by the United States after the EU said it would impose tariffs on US imports, including composition.
According to LSEG Data data, more than 900 of the 1,500 largest American companies have mentioned tariffs on earnings or investor events since the beginning of the year.
Tariffs are already promoting the prices of aluminum users in the United States to register maximums.
Wednesday's data showed that US consumer prices increased less than expected in February, although tariffs on imports are expected to increase the costs of most goods in the coming months.
The German chemical distributor Brenntag warned that 2025 will be another challenging year, made up of economic and political uncertainty and moderate economic growth worldwide.
CEO Christian Kohlpaintner said the situation “confusing and inscrutable” hindered the management of a business. The German Chemical Association, VCI said Wednesday that he did not expect any recovery this year.
“The great risk is for companies to stop spending and also the consumer also stops purchases,” said Justin Onuekwusi, investment director of the Investment Firm St. James's's Place.