The latest series of new rates unleashed by Donald Trump will hit almost all industries around the world, posing an unprecedented challenge for companies already struggling with high demand and inflationary pressures.
Industry leaders warn that the largest victim will be the American consumers who will pay more to buy everything, Adidas trainers in Modelo, the best -selling beer in the country.
The United States has unveiled a 10% reference direct debit with additional prices of up to 50% on several business partners, including EU, Japan, Vietnam and Cambodia.
Automotive
Foreign car manufacturers face a 25% rate on all vehicles assembled outside the United States. The vehicles and automotive parts of Mexico and Canada which comply with the US-Mexico-Canada 2020 (USMCA) agreement on trade will remain exempt from prices.
A wide range of automotive parts will also be subject to a price of 25% compared to May 3. Christophe Périllat, director general of the French car supplier Valeo, said that half of the company’s customers had already accepted an increase in full price to absorb the price cost.
While car manufacturers have been spared “reciprocal” additional prices on American trade partners, UBS warned that the withdrawals were still likely to increase the price of raw materials and electronic parts, increasing vehicle costs.
The Anderson Economic Group council expects the prices to increase up to $ 5,000 for American cars faced with the lowest prices and up to $ 20,000 for certain imported models, which has led to an impact of $ 30 billion on American consumers during the first year of price implementation.
American manufacturers are better placed, but even General Motors and Ford will be affected because they come from components from the outside of the United States. Bernstein estimates a blow of almost 10% of GM revenues due to prices.
Jeep owner, Stellantis, also said that she would temporarily stop production in her factories in Canada and Mexico.
The biggest losers include German BMW and Mercedes-Benz car manufacturers because many parts used in their American vehicles came from Europe. Subaru, on the other hand, imports all electric trains for its American vehicles from Japan.
Kana Inagaki in London, Claire Bushey in Chicago, Patricia Nilsson in Frankfurt and Ian Johnston in Paris
Retail and consumption products
The main brands of shoes and clothing will be hardly affected by the new pricing regime for the countries of Southeast Asia.
Many retailers have removed the supply of China to the manufacture of hubs in Vietnam, Cambodia and Indonesia, which are now subject to punitive prices up to 49%.
The actions of the Danish jewelry manufacturer Pandora fell 12% on Thursday while investors were concerned with the effect of prices on its manufacturing facilities in Thailand hard hit. The group estimated that the cost of the prices is DKR1.2 billion per year, with the impact for the rest of 2025, including mitigation measures, totaling approximately 700 m of DKR.
The United States has also confirmed the end of rights to be released from rights for small value packages from continental China and Hong Kong in the event of an electronic commerce trade such as Shein and TEMU. The “minimis” exemption on the packages evaluated by $ 800 will end on May 2.
The actions of retailers with supply chains in Southeast Asia have dropped, sportswear groups such as Nike, Adidas and Puma down by around 10%. The actions of the Swedish retail group H&M, which is largely purchased from its products from China and Bangladesh, fell by 4.5%.
Laura Onita in London, Florian Müller in Frankfurt and Richard Milne in Oslo
Wine and spirits
European groups that depend strongly on exports to the United States will be the largest losers. Rémy Cointreau has the strongest exhibition, with 38% of its sales made in North America in 2024, which come from the EU.
Trump’s decision to extend aluminum prices to include all imported canned beer and empty cans manifest badly for Mexican beer. Constellation brands import very popular Modelo, Corona and Pacifico beers on the North American market.
Mexican beer represents around 85% of the group’s net sales, amounting to 25% of operating profit, according to the analyst’s estimates.
Companies such as Diageo and Campari, which sell Canadian tequila and whiskey, have sigh of relief after the White House exempted from products in accordance with the USMCA agreement. The actions of Diageo, whose American companies are strongly biased towards Tequila and Canadian Whiskey, pink on Thursday.
Madeleine Speed in London
Luxury
Buyers in the United States, the largest luxury market, should expect the cost of their handbags and ready-to-wear fashion increases as companies increase prices to compensate for Trump’s prices on the EU and Switzerland, where goods are made.
On average, luxury brands are expected to increase prices by 6% in the United States to compensate for the pricing impact, or cope with a 7% drop in their profits before interest and taxes, UBS said.
However, industry has a pricing power, which should protect it from the worst of impact. Rich Americans are also likely to double one of their favorite hobbies: shopping abroad.
The biggest concern will be the success of the global confidence of consumers at a time when the luxury industry will already slow down after the frenzy of the Pandemic Boom COVID-19. Some companies, such as Ferragamo, LVMH and the owner of Cartier, Richemont, are more exposed to the Americas than others, according to Barclays.
“What we should care about … is [if] New American policies are rushing a strong global recession and a stock market correction. It would be the Black Swan scenario, “said Luca Solca in Bernstein.
Adrienne Klasa in Paris
Pharmacy
Pharmaceutical products are exempt from prices for the moment, although Trump has reported that he could act focused on the sector on a later date. Manufacturing would return to the United States, he said on Wednesday or face a “large tax”.
Mixed messages meant that certain actions, including Astrazeneca, GSK and Novartis, increased Thursday, while others, like Novo Nordisk and Roche, fell.
The manufacturers of drugs hoped that a 1994 World Trade Organization Agreement excluding tariff medicines and other tasks would protect them. But in recent weeks, some, including Eli Lilly and Johnson & Johnson, have announced significant investments in the United States on pricing concerns.
The generic industry could be the most difficult by potential prices because of its low margins. Jefferies analysts believe that the sector could be spared because it is “a significant contributor to reducing the costs of medicines in the United States”, and Trump seemed to focus on brand medication manufacturers, who transferred manufacturing to Ireland due to its lower corporate tax rate.
Hannah Kuchler in London
Aviation
Trump’s prices should make the flights more for passengers while aerospace companies have higher manufacturing costs.
About 20% of the materials used to make Boeing aircraft are imported, and “prices will increase the cost of manufacturing aircraft,” said Verical Research Partners analysts.
The manufacturer of the European Airbus aircraft has built a mounting chain in the United States, but will face higher import costs. Price increases should be transmitted to airlines and ultimately to customers.
Although Airbus is able to transfer costs to its customers, the company was still “vulnerable” due to the size and complexity of its supply chain, said Barclays analysts.
Philip Georgiadis in London
Logistics
The shipping and logistics groups, many of which have made great benefits during the commercial disruption of the cocvid pandemic, hope that the benefits of the prices will offer an opportunity.
Logistics leaders said customers have paid a bonus to pilot goods in the United States and Product storage in American warehouses. Many logistics companies also provide consultancy and customs services, which are in great demand while customers rush to understand all the new costs and border processes they will face.
Maersk, one of the main container shipping groups, said he expected “certain rowing orders” before the Trump’s last prices in the coming days.
Beyond this haste, Trump’s decision to remove the exemption from the minimis tax for low-cost imports should arrive in the aerodynamic market, which has been stimulated by the growing demand for Chinese retailers who benefited from this exemption.
The fears of a slowdown in trade reached the share of the Danish group AP Møller-Maersk and Hapag-Lloyd in Germany, two of the largest container shipowners. The actions of some of the largest international freight management companies, including the owner of DHL Deutsche Post, Kuehne + Nagel and DSV, also dropped.
Oliver tells London
