Tariffs, Inflation Drive Global Giants to Reshape Goals

(MENAFN) Since U.S. President Donald Trump assumed office in January, his “America First” agenda has led several top corporations to scale back or suspend their projections in first-quarter financial statements.

The adjustments stemmed from a mix of tariff pressures, rising costs, currency instability, and worries about slowing demand.

Tariffs imposed by the U.S. and retaliatory measures—particularly those from China—were key drivers in the first quarter. Experts pointed to the inflation-recession quandary as fueling uncertainty in major industries, complicating strategic planning.

Adding to the instability, the U.S. economy showed signs of contraction for the first time in three years. Analysts emphasized that despite strengthening ties, India is not positioned to replace China in U.S. trade dynamics.

Danish pharmaceutical company Novo Nordisk revised its 2025 sales growth forecast from 16–24% to 13–21%, citing reduced expectations for its weight-loss drug Wegovy. The firm also lowered its operating profit target from 19–27% to 16–24%.

German carmaker Mercedes-Benz Group scrapped its 2025 EBITDA target, warning that sustained 25% import tariffs could squeeze auto margins. The company plans to cut costs in its upcoming vehicle lineup and focus more on gasoline and diesel models instead of electric ones.

Dutch automaker Stellantis paused its operating margin goal while it reassesses investment plans amid intensifying tariff threats. Meanwhile, Sweden’s Volvo Cars dropped its 2025–26 goals after a 60% plunge in first-quarter earnings, announcing U.S. restructuring moves that will involve further layoffs and investment reductions next year.

Volkswagen, another German auto giant, trimmed its 2025 operating profit margin forecast, citing the impact of U.S. tariffs and the risk of EU emissions penalties.

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