President Donald Trump’s latest tariff offensive is rattling corporate America, forcing leading firms to lower their earnings forecasts amid surging costs. Companies like 3M, Kimberly-Clark, and RTX are now warning investors about financial strains, while economists and global agencies raise alarms about the broader economic fallout.
3M Braces for Tariff Impact
3M, the maker of Post-it notes and Scotch tape, expects tariffs to reduce its 2025 earnings by up to 40 cents per share. While the company is maintaining its full-year profit forecast of $7.60 to $7.90 per share, CEO William Brown described the tariffs as a major “headwind.” Plans are underway to implement cost-saving measures and selective price hikes. According to a Reuters report, 3M shares dropped 2.5% in premarket trading after the update.
Kimberly-Clark Cuts Its Outlook
Kimberly-Clark, the company behind Huggies diapers and Kleenex tissues, has lowered its 2025 profit expectations, citing approximately $300 million in additional costs—mostly from U.S. tariffs on Chinese goods. The firm now expects flat earnings instead of the previously projected mid-to-high single-digit growth. CEO Mike Hsu acknowledged that inflation in supply chain costs is outpacing forecasts. As reported by Reuters, shares fell 3% following the announcement.
RTX Warns of Steep Tariff Costs
Defense and aerospace company RTX (formerly Raytheon Technologies) says it could face up to $850 million in losses this year due to tariffs and global trade disruptions. Despite these concerns, the company posted a strong first-quarter profit, thanks in part to robust demand in its jet services business. Reuters notes that RTX executives flagged ongoing uncertainty as a key risk for future performance.
Recession Concerns Intensify
Economists are growing increasingly uneasy about the ripple effects of Trump’s trade measures. Citigroup’s Chief U.S. Economist, Nathan Sheets, told Reuters there’s now a 40% to 45% chance of a recession in the U.S., calling tariffs a “stagflationary shock.” He predicted the brunt of the economic damage will hit in the latter half of 2025.
In its latest global outlook, the International Monetary Fund downgraded its 2025 global growth forecast from 3.3% to 2.8%, attributing the decline largely to trade uncertainty and tariff hikes. This projection was also highlighted in Reuters’ coverage.
What’s Next?
As companies scramble to adjust, Trump’s tariffs are reshaping corporate strategies and rattling investor confidence. From rising raw material costs to shifting production chains, businesses are being forced to rethink their operations—and fast. With more tariff announcements expected, economic uncertainty in 2025 shows no sign of slowing.
(With inputs from Reuters news article)
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