Trump Tariffs Deal Billion-Dollar Blow to U.S. Tech and Auto Firms
U.S. technology and industrial giants—from NVIDIA and Apple to General Motors—are bracing for billions of dollars in projected losses stemming from President Donald Trump’s trade policies. These figures come even before many affected goods have reached their destinations.
General Motors has forecasted a $5 billion loss for the year, while Apple anticipates an additional $900 million in costs for the second quarter. NVIDIA has set aside $5.5 billion to comply with new export restrictions.
Advanced Micro Devices (AMD) expects a $1.5 billion revenue shortfall due to fresh U.S. regulations requiring licenses for exporting AI processors to China. The new export controls are reshaping revenue expectations for semiconductor companies across the board.
New tariffs are also projected to cost U.S. semiconductor equipment manufacturers over $1 billion annually. Industry leaders such as Applied Materials, Lam Research, and KLA could each face around $350 million in yearly losses. Smaller players like Onto Innovation may see tens of millions in additional expenses.
Meta Platforms has raised its 2025 capital expenditure outlook by as much as $7 billion, attributing the increase partly to higher-than-expected global procurement costs. CFO Susan Li highlighted ongoing trade talks as a significant source of uncertainty.
Many other corporations, including NVIDIA and Oracle, have not yet disclosed updated earnings or addressed analysts' concerns about the tariff impact. In anticipation of further disruptions, management teams are adopting various mitigation strategies, such as shifting production away from China and front-loading material orders to avoid price spikes.
Microsoft reported better-than-expected growth in Windows and related product sales, driven by customers stockpiling inventory. Amazon accelerated certain inventory purchases in Q1 to prepare for tariffs, a move that, combined with unrelated return costs, led to a $1 billion reduction in quarterly profits.
Among the hardest-hit companies is General Motors, which imports vehicles from South Korea, Canada, and Mexico. The automaker is exposed to a 25% tariff on most imported vehicles and additional duties on parts, significantly impacting domestic production.
Ford Motor Company, which manufactures 80% of the vehicles it sells in the U.S. locally, expects tariffs to reduce its 2025 EBITDA by approximately $1.5 billion. Motorcycle manufacturer Harley-Davidson estimates it could lose up to $175 million this year due to tariff pressures.
The impact extends beyond U.S. automakers. Japan’s Toyota Motor Corporation projects a $1.3 billion drop in operating income during the first two months following the tariff policy shift that began on April 2.
Aerospace and defense conglomerate RTX Corporation anticipates an $850 million hit to operating profit, even after implementing cost-mitigation strategies. Other major players, including Honeywell International, GE HealthCare, and GE Aerospace, expect the 2025 tariffs to reduce earnings by about $500 million each, excluding further supply chain or pricing changes.
Boeing estimates that tariffs will raise its manufacturing costs by under $500 million annually, including a 10% duty on large 787 Dreamliner components made in Japan and Italy.
Diversified industrial manufacturer 3M foresees up to $850 million in annual losses due to tariffs. Meanwhile, chemical giant DuPont is working to reduce a projected $500 million tariff cost to $60 million through strategic operational adjustments.
GE Vernova, the energy division spun off from General Electric, expects up to $400 million in added costs this year. The company plans to offset this through contract-based inflation protection clauses, legal change provisions, cost-cutting initiatives, and supply chain restructuring aimed at reducing reliance on China.
