Some of America’s top companies, like Apple and General Motors (GM), are getting ready to face massive losses as a result of the ongoing trade war led by US President Donald Trump. This trade battle has led to new taxes, known as tariffs, on goods moving in and out of the country — and the financial damage is already adding up.
GM, one of the biggest carmakers, expects a US$5 billion hit in 2025. Tech giant Apple says it will face nearly US$900 million in extra costs just this quarter. Chipmaker Nvidia is preparing for an even bigger impact, with a US$5.5 billion charge because of new restrictions on exports.
The US government has imposed tariffs as high as 145% on many Chinese products, while China has fired back with its own taxes of up to 125% on American goods. Other imported items, like steel and aluminium, are also seeing extra taxes, with the US charging a 25% duty on them.
Many more companies have sounded the alarm. But experts believe the total damage could be much larger because several firms have not yet shared their full estimates. Some are waiting to see what happens next, while others have warned that they will have to raise prices — and that could scare customers away.
🎬 Trump Targets Foreign Movies With New 100% Tariff to Revive American Movie Industry
Companies Racing to Cut the Damage
Businesses are trying hard to manage these rising costs. Meta, the company behind Facebook and Instagram, raised its spending plans by as much as US$7 billion this year, partly because equipment prices have shot up due to global sourcing issues.
Amazon, the giant online retailer, rushed to buy more inventory before the tariffs took effect. While this move helped avoid even higher prices later, it still cut Amazon’s profits by about US$1 billion in just the first quarter.
Manufacturers are feeling the squeeze too. Procter & Gamble, which makes products like detergent and toothpaste, expects tariffs will add between US$1 billion and US$1.5 billion to its yearly costs. To handle this, the company plans to raise prices on its items.
Stanley Black & Decker, famous for its tools and lawn equipment, is facing US$1.7 billion in extra costs every year due to tariffs. Even after changing its supply chain and raising prices, the company still expects its earnings to drop by about 15% in 2025.
Aerospace giant RTX expects tariffs to slash US$850 million from its operating profits. Honeywell International, GE HealthCare Technologies, and GE Aerospace each project about US$500 million in added costs from tariffs next year.
💼 Gautam Adani Faces U.S. Firestorm Over Alleged $265M Bribes, Quietly Lobbies Trump Team
Boeing, the aircraft maker, says tariffs will push its manufacturing costs up by less than US$500 million annually. Some parts of its 787 Dreamliner come from Japan and Italy and now face a 10% import tax. Boeing could face even more trouble if the European Union adds its own tariffs, making its planes too expensive for buyers abroad.
Medicine, Candy, and More Caught in the Crossfire
The impact of these tariffs is spreading far and wide. 3M, which makes everything from sticky notes to safety gear, said it could lose as much as US$850 million a year because of the tariffs. The company is working on plans to reduce this but still expects to lose hundreds of millions.
In healthcare, medical device maker Thermo Fisher Scientific and pharmaceutical giant Johnson & Johnson each expect a US$400 million hit in 2025 due to the new taxes. Another drugmaker, Merck & Co, estimates a US$200 million loss.
Even candy companies aren’t safe. Hershey, known for its chocolates and candies, expects US$15 million to US$20 million in extra costs just in the second quarter. But as cocoa supplies drop, the company says those costs could jump to as much as US$100 million in both the third and fourth quarters — and that’s before they even try to soften the blow.
With many companies still waiting to reveal their full numbers, the true impact of this trade war could end up being even bigger. For now, businesses across the US are scrambling to keep their costs under control as tariffs continue to bite.
