Major European and UK companies are warning that the United States' sweeping new tariffs under President Donald Trump are creating deep uncertainty, weakening consumer confidence, and complicating long-term investment plans.
Some of the world’s largest companies — including Nestlé, Mercedes-Benz, Unilever, and Ikea operator Ingka — have outlined the escalating challenges posed by Washington’s new trade policies, as Trump pursues a sharp pivot toward protectionism.
Executives highlighted the far-reaching implications of the White House’s recent tariff actions, which were introduced during an April 2 “liberation day” event and include a baseline 10 percent tariff on trade partners, with steeper reciprocal duties targeting dozens of countries. Though full implementation was delayed by 90 days to allow negotiations, business leaders say the damage has already begun.
Jesper Brodin, chief executive of Ingka Group, said the speed of US policy shifts was making strategic planning impossible. “I remember the days when politicians were slow and companies were fast,” he told the Financial Times. “There’s no way Ikea can adapt its footprint and strategy on this type of time horizon.”
The uncertainty is already reshaping boardroom behavior. According to FactSet data, references to tariffs on earnings calls from companies on the Stoxx Europe 600 index more than doubled in April compared with March — from 115 to 223 mentions.
Nestlé chief executive Laurent Freixe described 2024 as a year that began with consumers who were “not optimistic, to say the least,” adding that tariffs have further dampened expectations.
Unilever warned that rapid currency swings since the tariffs were announced, particularly the dollar’s steep fall against the euro, were adding to volatility. Acting CFO Srinivas Phatak called the shifts “unprecedented.”
Companies such as Stellantis, Mercedes-Benz, and Volvo Cars have already scrapped their forecasts for the year, citing low visibility and policy ambiguity. Fabiana Fedeli, portfolio manager at M&G Investments, noted, “You are starting to see companies making statements about low visibility and unwillingness to make long-term plans.”
Retailers like Primark are reconsidering their supply chains. George Weston, CEO of parent company Associated British Foods, said they may move some production away from China, but only once there is “a bit more certainty” around trade rules.
Despite signs of potential talks between the US and China, the EU and UK have yet to reach firm agreements with Washington. Brussels is preparing retaliatory tariffs to take effect on July 8 if no deal is reached.
Meanwhile, companies like Reckitt — maker of Strepsils and Dettol — say market turbulence may impact major transactions, including a multibillion-dollar sale of its cleaning products division.
Executives across industries continue to urge clarity, warning that prolonged ambiguity around tariffs and trade policy could stall investment and further shake global markets.
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