The financial markets have been significantly affected by tariffs, with stocks losing nearly a year’s worth of gains due to concerns about economic growth slowdown or potential recession. Companies are now issuing more specific warnings about how tariffs could impact their profits and consumers. Executives at PepsiCo noted supply chain disruptions and increased costs, leading to a lowered forecast for core constant currency earnings per share. Procter & Gamble also cited weaker consumer demand and the direct effects of tariffs on their operations. As tariffs continue to affect various sectors, companies are adjusting pricing strategies and exploring sourcing options. Consumers are increasingly relying on credit to manage cash flow amid rising prices, which could intensify as tariffs affect household purchases. The trade war is also expected to impact homebuyers, with estimates suggesting tariffs could increase new home prices by up to $5,000 on average. While President Trump has suspended some tariffs, uncertainty remains high, prompting companies to warn investors of lower returns.
— new from NBC News
