The corporate responses to a looming trade war are currently ranging from doomsday predictions of huge losses, to commitments to onshore manufacturing operations. The wide range of punitive tariffs on imports into the U.S. threatened by President Donald Trump, along with the likely retaliatory tariffs on U.S. exports, are already influencing major business decisions in multiple industries.

Some appeared enthusiastic about increasing their stake in a “Made in America” approach. Apple, for example, announced February 24 it is planning to spend $500 billion over the next four years to expand its manufacturing capacity in the United States.

Nestlé’s CEO said during the company’s Q4 2024 earning call February 13 that it is largely “immune” from the impact of tariffs, because most of the products sold are manufactured in their respective markets. In the U.S., for example, Nestlé produces about 90% of what it sells domestically.

Sony confirmed during its third quarter earnings announcement for the 2024 fiscal year February 24 that it is stockpiling inventory in the U.S. to ensure there are no product shortages, reports Yahoo!Tech. Although the company said the new tariff policy will impact Sony products including the PS5, it expects these changes to only have a “minor” effect on the upcoming financial year.

Others, especially in the auto industry, cited grave concerns about the extra costs the tariffs would bring — costs likely to be passed on, at least in part, to the American consumer. Honda Motor Co. said a 25% tariff on imports from Mexico and Canada poised to take effect March 4 would have a “$20 billion plus impact” on the company, according to global EVP Shinji Aoyama on a call with analysts on February 13. 

Ford Motor Co. CEO, Chris Farley, warned U.S. lawmakers February 12 that, not only would proposed tariffs “blow a hole in the U.S. auto industry,” but that it would benefit U.S. automakers’ competitors. “Frankly, it gives free reign to South Korean, Japanese and European companies that are bringing 1.5 million to 2 million vehicles into the U.S. that wouldn’t be subject to those Mexican and Canadian tariffs,” Farley said. “It would be one of the biggest windfalls for those companies ever.”

And the 10% tariff on imports from China, already officially in effect as of February 4, means Stanley Black & Decker expects an annual charge of $90 million to $100 million on its approximately $1 billion of imports from China, resulting in a net impact of $10 million-$20 million net loss, said the company’s CEO February 5. 

Excitement about potential Trump-era deregulation and tax cuts drove consumer and executive sentiment higher right after the election. But now, fears about trade war fallout might overshadow those business-friendly policies, says news service Axios.com. It reported that the University of Michigan's measure of consumer sentiment fell about 10% in February relative to January, the second consecutive monthly decline.

U.S.-based companies are also likely to suffer because of reciprocal tariffs imposed by America’s trading partners in retaliation, threatening profit from exports. As far back as November 28, after Trump was voted in as president on the back of promises to impose tariffs, Rideapart.com said domestic demand for Harley Davidson motorcycles had declined sharply of late, and the company is relying more and more on foreign sales in Europe, Asia and especially the U.K. 

“But all of that will be for naught if Harleys, which are already some of the most expensive motorcycles on the market, suddenly and overnight get 10% to 30% more expensive because of counter-tariffs imposed by the U.K. and potentially counter-tariffs made by the EU,” the motorcycle rider site commented. “Imagine a $30,000 motorcycle becoming a $50,000 motorcycle once these counter-tariffs go into effect, which could literally happen overnight.”