Top leader prepares for the worst (video)
6 mins read

Top leader prepares for the worst (video)

Corporate America is waiting for Trump’s post -shoe.

The Trump administration said on Friday that it would implement 25% tariffs on Mexico and Canada from today and 10% in China and ended weeks with speculation.

No formal announcement has been made from this writing.

In total, the United States makes approximately $ 1.6 trillion in business operations with the three economic power plants. Trump has been increasingly vocal on the need for customs Against the countries then took office in January as a way to promote his first economic agenda in America.

Ey Chief Economist Greg Daco Estimates that US GDP would contract with 1.5% in 2025 and 2.1% in 2026 if customs kick in as they would “dampen” consumer expenses and business investments. Inflation would increase by about 0.7% during the first quarter, Daco projects.

Look: Former Trade Secretary Wilbur Ross believes that customs will come

“Rising commercial policy uncertainty will increase the volatility of the financial market and strain the private sector, despite the administration’s pro-business rhetoric … Federal Reserve’s response will also be critical. If customs duties drive the inflation expectations higher, Fed may feel pressured for Keep interest rates restrictive for longer, tightening of economic conditions and weighing at growth moments, ”Daco said in a client note.

When the markets have Stag for customs and potential downward audits of profit calculations from companies, leaders hold in action mode in the subject of Hot Button.

Here is what top leaders at public companies have told me about the possible impact of customs duties from the Trump administration over the past two weeks. Takeaway: Public companies are better prepared to withstand customs duties than during Trump’s previous stay in the White House.

“We have done a lot of scenary planning and we know the levers that we can draw to minimize all effects. But with the opportunity to talk to the president, I really think he wants a strong manufacturing sector because it is good for the economy.”

Barra continued (video above), “Well, I think he (President Trump) very much understands exactly what the consequences will be (of customs). And I think they have been very clear that they want to make sure there is right and Balanced relationships with many of the different countries they talk about to achieve the goals of his administration.

GM did not bake in Trump -duties in their 2025 EPS prospects, unpleasant investors.

On one December interviewBarra told me that tariffs would lead to higher prices for cars and trucks for consumers.

“I would tell you, stabilization right now is careful. It will be a lot of change, which is happening, and you see that it comes out. In recent weeks since the inauguration we have obviously done our work around scenario modeling and planning tariffs.

“We do not know exactly which tariffs will be introduced. But we have worked with this for several quarters. We now have several scenarios, and as soon as we know what the final plan will be, we will put a plan in place or not.

Lores continued, “Especially on the PC side, China is a large place of manufacture for us, but in recent years we have diversified because we learned under Covid that the cost would not be the only driving force for our supply chain. A much better position.”

Williams Sonoma CEO Laura Alber (right) talks to Yahoo Finance Executive Editor Brian Sozzi at the World Economic Forum at the end of January. Alber says she is working to minimize the effects of possible customs, partly by making more products in the United States.Williams Sonoma CEO Laura Alber (right) talks to Yahoo Finance Executive Editor Brian Sozzi at the World Economic Forum at the end of January. Alber says she is working to minimize the effects of possible customs, partly by making more products in the United States.

Williams Sonoma CEO Laura Alber (right) talks to Yahoo Finance Executive Editor Brian Sozzi at the World Economic Forum at the end of January. Alber says she is working to minimize the effects of possible customs, partly by making more products in the United States. (Yahoo Finance)

“In the first Trump administration we saw the first wave of customs duties and we reduced our exposure to China by 50%.”

Home products and interior designers are now relying on China for 25% of their purchases, says Alber.

“We are not waiting for the next wave of customs,” Alber added. We have worked to continue moving our product elsewhere. So whether it is somewhere else in Asia or even in the United States. Most of our clothing furniture is made in Mississippi or North Carolina. “

“It’s a pressure point. But again I think we can work through it and we can handle it. I think we have already lived with customs. It is not a new concept and we have been able to navigate it.

Ralph Lauren once relied on China for 50% of his purchase. Today, the number is close to a center of a digit percentage, Louvet said.

“China has some unique expertise in some categories for us. You know, some of our more sophisticated sweaters are made in China. Some of our more sophisticated shoes are made in China. I think that under hardness we can always find alternatives. And as As you can imagine that we are running all types of scenarios to be prepared.

“So we have stored the products in Europe, but it will not last. How long would it last? I think at least one year. We are preparing for that customs from the European continent for it because the dispute has been well studied in the past.”

“Our team has done an incredible job in recent years and diversifies our global manufacturing imprint. Less than 10% of our product comes from China. We have Southeast Asia, Central America, Europe, India. We have different places, in ways that we have Developed over time, and we continue to develop new markets for product development. Certainly we present our consumers with the best product, at the best price, with the best version. “

Brian Sozzi is Yahoo Finance’s executive editor. Follow Sozzi on x @BrianssozziThe Instagram And further LinkedIn. Tips on stories? E -post [email protected].

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