Good morning. Since tariffs are ready to put pressure on supply chains, prices remain in mind for company leaders.
“Tariff Troubles: Consumer Products most affected by reciprocal rates,” is a new analysis of the Global Market of S&P. The new tariffs of the Trump administration will add 10 percentage points to import duties from all countries except Canada and Mexico. And this will exclude sectors such as metals, chemicals and machine guns that will have their own tariffs. This means that supply chains will be most affected by consumer products, including clothing, toys and smartphones, according to Chris Rogers, head of research in the Global Supply Chain of Intelligence Chain on the Global Market of S & P. These sectors face additional duties in the order of 27 to 30 percentage points on a weighted average basis, he said.
Supply chain managers are likely to include new tariffs in their price and negotiation strategies for costs in the near future, Rogers said. Sources prevailing options are limited due to “pure width of coverage of duties,” he said.
Corporate leaders have been moving tariff uncertainty for a long time. So, it continues to be a dominant topic for calls for earnings. I applied with Buton Butter, and an older analyst for earning in FactSet, for his latest analysis. From December 31 to March 14, the terms “tariff” or “tariffs” were mentioned on calls to earn 263 by the companies S&P 500, Bators said. Overall, 487 by the S&P 500 companies made calls for earnings during this period.
And, from March 15 to April 4, 16 of the 18 companies S&P 500 that conducted calls for earnings mentioned “tariff” or “tariffs”, he added.
As we refer to mid -April, when many companies need to publish their earnings reports Q1 2025 and make conference calls, tariff talks will certainly arise, but may be discussed from a different angle.
In recent calls for earnings, companies were loud in discussing strategies and “net negativity of tariffs”, according to a report by S&P Global. However, companies may be cautious in making short -term announcements to “avoid reactions from the Trump administration,” the report said.
“We expected companies to talk about rising client prices and costing negotiations with suppliers as a major strategy during the season of calls for earnings,” Rogers said. “Discussions on long -term plans, including whether to move production and sources to the United States, could be muted given the ongoing uncertainty about the final picture of the tariffs.”
Cheryl Estrada
sheryl.estrada@fortune.com
This story was originally shown on Fortune.com
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