Recently, several multinational companies have issued warnings about the potential impact of the U.S. government’s tariff policies on their performance. French luxury brand Hermès announced on the 17th that it would pass the additional tariff burden onto American consumers.
Starting from May 1, Hermès will increase the sales prices across all its business lines in the U.S., adding an extra price increase on top of the usual 6%-7% increase to offset the effects of the tariffs imposed by the U.S. government. Meanwhile, the company’s latest financial report revealed that its first-quarter sales for the fiscal year 2025 were slightly below market expectations, showing an unusual weakness.
Not only Hermès, but also the French luxury giant LVMH reported a 3% year-on-year decline in sales for the first quarter, which was below analysts’ expected growth of 2%.
Regarding the drop in performance, LVMH’s Chief Financial Officer, Jean-Jacques Guiony, stated that one of the main reasons is the trade disputes triggered by U.S. tariff policies, which have made business more difficult. He also mentioned that the company would consider raising prices to cope with the impact of tariffs. On the 17th, LVMH’s CEO Bernard Arnault warned that trade tensions could severely damage European industries.
This week, Johnson & Johnson disclosed in its financial report that, based on the tariffs announced by the U.S. government on goods and raw materials, the company expects to face a profit loss of $400 million in 2026. Johnson & Johnson stated that its medical technology division is most affected by the tariffs.
Additionally, U.S. aluminum producer Alcoa reported that about 70% of the aluminum produced in Canada is sold to the U.S. The U.S. government’s tariffs on steel and aluminum imports have already resulted in a loss of approximately $20 million for the company in the first quarter, and it expects losses to reach about $90 million in the second quarter.
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Post time: Apr-23-2025
