Global industries are feeling the impact of Trump’s trade war, which led to a decline in U.S. stocks on Wednesday. Tech companies like Nvidia are facing substantial losses due to supply chain disruptions.
Airlines are preparing for an uncertain summer travel season as the Federal Reserve noted a decline in economic activity and expressed concerns over tariffs affecting inflation reduction efforts. Although Trump claims many countries want to negotiate with the U.S., tangible progress has been slow.
Jean-Christophe Babin, CEO of Bulgari, remarked on the unpredictability of U.S. tariff policies, saying, “What was true yesterday is no longer true today, and the future is uncertain.” Nvidia anticipates a $5.5 billion accounting hit due to AI chip export restrictions, while ASML and other U.S. chip equipment manufacturers could face substantial losses.
Despite some companies remaining optimistic, uncertainty is prompting caution, as seen with United Airlines, which is maintaining its 2025 profit forecast while acknowledging potential economic scenarios. Japan is elevating trade discussions with Trump over potential tariffs as automakers seek temporary tariff relief for U.S. production relocation.
Federal Reserve Chair Powell warned of rising inflation due to tariffs, coinciding with a drop in U.S. consumer sentiment. Retail data indicates softening demand, with retailers like Temu and Shein advising customers to purchase before price increases. Companies are also rushing to import goods ahead of likely tariff hikes.