Uncertainty brought by U.S. President Donald Trump‘s threats of tariffs and his shape-shifting trade policies are starting to have a chilling effect across many industries, businesses warn, as consumers pull back on everything from basic goods to travel.
Reuters
Trump’s back-and-forth tariff moves against major trading partners have kept businesses, consumers and companies on edge, prompting companies to warn they may have to raise prices, which could boost inflation and dent economic growth.
While Trump has said his policies could cause short-term pain, concerns about their economic fall-out intensified over the weekend after he declined to predict whether his economic policies would cause a recession.
On Monday, such fears fuelled a stock market sell-off that wiped nearly $5 trillion from the S&P 500’s peak last month, when Wall Street was cheering much of Trump’s agenda.
Speaking after the market close on Monday, Delta Air Lines CEO warned that economic worries among consumers and businesses were already hurting domestic travel.
“We saw companies start to pull back. Corporate spending started to stall,” CEO Ed Bastian told CNBC on Monday. “Consumers in a discretionary business do not like uncertainty.”
Cuts by Americans to discretionary spending knocked airline stocks on Tuesday and with each day, evidence is mounting across the corporate world that the chaotic implementation of Trump’s tariffs is translating into caution on Main Street.
Trump is expected to speak with around 100 CEOs at a regular meeting of the Business Roundtable in Washington, an influential group that includes bosses of major U.S. companies from Apple to JPMorgan Chase and Walmart. The Republican president met with technology company executives at the White House on Monday.
The latest round of Trump tariffs – 25% levies on imported steel and aluminium – kick in on Wednesday.
The tariffs will apply to millions of tons of steel and aluminium imports from Canada, Brazil, Mexico, South Korea and other countries that had been entering the U.S. duty free under the carve-outs.
Trump has vowed the tariffs will be applied “without exceptions or exemptions” in a move he hopes will aid the struggling U.S. industries.
On Tuesday, he said he was doubling the planned tariff on all steel and aluminium imports from Canada, bringing the total to 50%, in response to the province of Ontario imposing a 25% surcharge on electricity it exports to the United States.
In a post on Truth Social, Trump also threatened to “substantially increase” tariffs on cars coming into the United States on April 2 “if other egregious, long time Tariffs are not likewise dropped by Canada.”
Ahead of these measures, a range of recent surveys of U.S. businesses and consumers have shown deteriorating sentiment, which, if sustained, could hamper investment and household spending. The National Federation of Independent Business – a Washington lobby group whose members staunchly supported Trump in the 2024 election – reported small business sentiment weakened for a third straight month, erasing the bump from Trump’s election victory.
“Uncertainty is high and rising on Main Street, and for many reasons,” said NFIB Chief Economist Bill Dunkelberg, without elaborating.
That followed Monday’s monthly New York Fed survey of consumer expectations showing households were growing more pessimistic about their financial prospects in the year ahead and a higher share of respondents expecting a rise in unemployment.
U.S. businesses broadly had greeted Trump’s election with optimism, fuelled by pledges of deregulation and tax cuts.
But Republicans in Congress have yet to agree on a plan that would allow them to cut taxes and instead are focused this week on averting a government shutdown when funding expires at midnight on Friday.
Companies sensitive to shifts in consumer and business sentiment are sounding the alarm about slowing demand for household and industrial goods.
Germany’s Henkel, which makes Sellotape and Schwarzkopf hair products, said on Tuesday that Washington’s policies were hurting the U.S. market disproportionately.
The company which also makes adhesives, currently sees a “reluctance” in terms of demand in the U.S. for both consumer and industrial segments, CEO Carsten Knobel told reporters.
It was too early to quantify a possible impact on its business as the situation remains volatile, he said.
Kohl’s Corp forecast profits below Wall Street estimates, as the U.S. department store chain grapples with uneven demand.
Larger rivals Macy’s and big-box retailers Walmart and Target have also tempered expectations as U.S. inflation risks rise and recession fears mount.
Telecom firm Verizon Communications’ shares fell after it said first-quarter growth will probably be “soft”.
Christian Schulz, deputy chief European economist at Citi, said growing fears about a U.S. recession will make life even harder for companies.
“Companies will have a tougher time in the short term to make investment decisions for the long term,” he said.
In-the-news Debenhams has turned its attention away from corporate matters to tell us the brand is heading to the races. The digital department store has signed a two-year partnership deal to sponsor The Jockey Club and its premier racecourses.
Specifically, the ‘Debenhams Day Spa’ is to launch at four of the UK’s key fixtures, creating “unrivalled moments of glamour and excitement” to deliver immersive race-day beauty experiences at some of the most prestigious fixtures on the racing calendar across 2025-2026.
It all begins with the upcoming Cheltenham Festival (15-18 March), followed by Epsom’s Derby Festival (7-8 June), Sandown Park (5-6 July), Newmarket’s July Festival (12-14 July), and the Grand National Festival in 2026.
We’re told the partnership unites “two British icons in retail and racing, blending Debenhams’ legacy of championing personal style and self-expression with The Jockey Club’s heritage of elegance and performance”. And the aim is “creating a modern space for racegoers to indulge in the very best of fashion and beauty from Debenhams”.
The Day Spas are luxury pop-up destinations that will provide spectators with interactive beauty moments and touch-ups using L’Oréal Luxe products (Lancome, YSL, Prada, Armani and Viktor + Rolf).
The spas will also feature pieces from the Coast at Debenhams fashion collections.
Beyond race-day activations, the partnership includes year-round branding across The Jockey Club’s 15 racecourses, “delivering consistent exposure to race-day audiences and an average ITV viewership of 400,000 across 85 fixtures annually”.
Dan Finley, CEO of Debenhams, said: “Horse racing embodies elegance, excitement and unforgettable memories – values that align perfectly with our ethos. Our Debenhams’ Day Spas will offer racegoers an irresistible opportunity to unwind, indulge and feel their very best throughout the day.”
Best-know for its trainers, New Balance is increasingly turning its attention to the comfort/leisure footwear sector.
Described as a “new market opportunity for New Balance”, the introduction of the new ‘Made in UK Allerdale’ comes about as the brand “looks beyond only retro running by capitalising on a shift towards a more formal and tailored approach to fashion”, according to New Balance creative design manager Sam Pearce.
The ‘Allerdale’ is the latest addition to its ‘Made in UK’ collection with the all-new model “combining the brand’s “walking shoe heritage and contemporary design for a more formal aesthetic”.
Designed for both “comfort and elegance”, the Allerdale’s craftsmanship and style is paired with the brand’s signature FuelCell cushioning comfort technology.
The model features a cupped sole unit, with heavy-duty stitching and a hiking-inspired tread. Made with premium leather and suede, the shoe is finished with minimalist branding marked by an embroidered flying New Balance logo.
Pearce added: “Building on the legacy of our revolutionary Hiker models, and our lesser-known walking collection of the 1980s – which were also made in England – this design was born and named by its very surroundings. The ‘Allerdale’ is a modern expression of a classic style, built for those who want to walk their own path.”
The Allerdale, in brown leather, will be available globally online from 20 March.
eBay continues to develop its fashion resale category introducing a “groundbreaking” editorial and fashion film project, ‘The Goat Dancer’, culminating in the launch of an inspirational fashion edit.
The digital retail giant is “championing the transformative potential of pre-loved fashion sourced entirely on eBay” by joining forces with fashion photographer Nick Knight, stylist Lara McGrath and creative film/photography venue ShowStudio to develop the project.
With McGrath having established “an inventive and outré approach to styling” and Knight being “captivated by the stylist’s ability to layer and style pre-loved garments into visionary ensembles”, the stylist documents mirror portraits of herself in public changing rooms.
The ShowStudio collaboration brings that creative spirit to life “offering a treasure trove of fashion finds – all £50 and under – ready to be revived and reimagined”.
From scoring Jil Sander shoes for £30 to finding beauty in a Per Una chiffon top, repurposing a kimono into a fishtail skirt, or transforming a bedspread into a dramatic cape, “the project showcases the endless possibilities of second-hand fashion reimagined”.
With old-school glamour inspiring the hair look for the shoot created by Eugene Souleiman, and noughties-inspired make-up by Lynski, Knight and McGrath “crafted a surreal visual narrative that highlights the potential of reimagining fashion through sustainability and artistry”.
Live-streamed on ShowStudio, the shoot “celebrates individuality, reinvention, and the thrill of uncovering hidden gems in pre-loved fashion on eBay—proving that style, creativity, and sustainability go hand in hand”.
To celebrate the collaboration, eBay has also curated an exclusive ShowStudio x Lara McGrath edit featuring secondhand fashion pieces inspired by the shoot, “inviting designers to reimagine archival and pre-loved styles into fresh, relevant works of art that transcend time”.
Entertainment8 years ago