Major American corporations are sounding the alarm over escalating US tariffs, highlighting the financial strain and supply chain disruptions brought on by the current administration’s trade policies. Car manufacturer Ford and toy giant Mattel are the latest to issue warnings, joining a growing list of businesses affected by the widening trade dispute, particularly with China.
Ford estimates that tariffs will add approximately $2.5 billion to its costs this year. The automaker attributes much of this increase to higher expenses tied to imports from China and Mexico. However, the company has managed to offset about $1 billion of these additional costs by adjusting logistics, such as rerouting vehicles through Canada to bypass tariffs. Still, due to the ongoing uncertainty, Ford has suspended its earnings guidance for investors.
Mattel, the maker of Barbie and Hot Wheels, is also feeling the heat. With about 20% of its US products sourced from China, the company has announced plans to reduce that figure to below 15% by next year. In a statement to investors, Mattel cited the “volatile macroeconomic environment” and the “evolving US tariff landscape” as key factors contributing to unpredictable consumer behavior, especially during the critical holiday season.
Since President Donald Trump returned to office in January, his administration has imposed new tariffs of up to 145% on Chinese goods. With existing duties layered on, some products now face levies as high as 245%. In retaliation, China has imposed a 125% tax on US imports. Meanwhile, Southeast Asian countries such as Indonesia, Malaysia, and Thailand—other sources for Mattel’s toys—were also targeted with tariffs earlier this year.
Other major brands have echoed similar concerns. Intel’s CFO warned of a heightened risk of recession due to fluid trade policies, while Adidas cautioned that popular sneakers like the Gazelle and Samba could become more expensive. Skechers and Procter & Gamble also flagged supply chain uncertainty and rising material costs as significant threats to their financial performance.
With the economic landscape growing increasingly uncertain, these warnings underscore the mounting pressure on US businesses navigating the ongoing tariff wars.
