Major companies face a difficult task in estimating the impact of tariffs on their business - The Boston Globe (2025)

Here’s what some of those companies are saying:

Kraft Heinz is cutting its earnings forecast for the year, citing a volatile environment.

The maker of food staples, including its namesake ketchup and boxed macaroni & cheese, is under pressure along with other food companies as inflation continues squeezing consumers. Tariffs could force companies to raise prices on consumer staples and food products, further fueling inflation.

“We’re closely monitoring the potential impacts from macroeconomic pressures such as tariffs and inflation,” said Kraft Heinz CEO Carlos Abrams-Rivera, in a statement.

JetBlue Airways pulled its financial forecast for the year over worries about slowing travel demand as consumer confidence weakens.

The travel sector, including airlines, faces an indirect impact from tariffs. Tariffs threaten to raise prices on a wide range of consumer goods, worsening inflation and squeezing consumers. Discretionary spending on travel is often among the first budget items that households consider trimming or cutting completely in order to deal with higher costs elsewhere.

“In the first quarter we saw booking strength from January deteriorate into February and worsen into March,” said Marty St. George, JetBlue’s president, in a statement.

JetBlue said it is considering capacity reductions, fleet retirement and other costs savings to help boost profits and preserve cash.

A report from the Conference Board Tuesday showed that Americans’ confidence in the economy slumped for the fifth straight month to the lowest level since the onset of the COIVD-19 pandemic.

Coca-Cola said the impact of tariffs on its business is likely to be “manageable.”

Still, the beverage giant moderated expectations for its full-year profit. It now expects full-year adjusted earnings to grow 7 percent to 9 percent, down from 8 percent to 10 percent previously. Coke earned $2.88 per share in 2024.

Coke and other beverage makers are facing a 25 percent tariff on the aluminum they use for cans, among other items. The company has said that it could shift aluminum suppliers, rely more heavily on plastic or glass bottles and take other measures to counteract the tariffs. Last week, rival PepsiCo lowered its full-year earnings expectations due to the impact of tariffs.

General Motors is reassessing its expectations for 2025 due to auto tariffs.

The automaker is pushing back its conference call to discuss its guidance and quarterly results until Thursday, so that it can assess potential changes to the Trump tariffs. On Tuesday, the White House said Trump will sign an executive order to relax some of his 25 percent tariffs on autos and auto parts.

GM’s current forecast for earnings of $11 to $12 per share doesn’t consider the potential impact of tariffs.

The auto tariffs could be particularly painful because major carmakers have production spread throughout North America. Parts and the assembly process often cross multiple borders several times before a car is complete. Carmakers face higher costs and that could mean higher prices for consumers, prompting them to delay or forgo purchases.

UPS said that it modeled several different scenarios for how the year might play out because of the uncertainty over tariffs.

China remains a key concern for the package delivery company. Many of the small businesses that UPS deals with rely on China for their goods. There is a universal tariff of 10 percent for imports to the US, but tariffs on imports from China are as high as 145 percent.

“It’s China that’s the real uncertainty, I think, facing the economy,” said CEO Carol Tome, in a conference call with analysts.

The rest of the world at 10 percent tariffs is manageable, she said.

Sherwin-Williams said it expects demand to remain choppy at least through the first half of the year.

The paint maker reaffirmed its earnings forecast for the year. It said about 80 percent of is revenue is in the US and the “vast majority” of its raw materials are sourced in the region where it makes its products. That leaves it less exposed to tariff impacts.

AP Business Writers Dee-Ann Durbin and Michelle Chapman contributed to this report.