President Donald Trump's tariff promotion has frustrated U.S. companies with plans for the rest of the year, preventing some corporate giants from telling investors what they expect and scrambling to give a broader perspective on stocks.
Mattel and Ford suspended their 2025 financial forecasts on Monday.
The toy giant told investors that “given the macroeconomic environment and the evolving U.S. tariff environment, it is difficult to predict consumer spending and U.S. sales over the rest of the year and holidays.”
The company said its two flagship brands, Barbie Dolls and Hot Wheels, are mainly made outside of China, which faces an effective tariff rate of 145% for the Trump administration. CEO Ynon Kreiz still told CNBC Tuesday morning that Mattel is considering hiking prices for U.S. consumers to offset tariffs, which is estimated to reach $270 million.
"We will take pricing action in the United States when necessary," Crez said.
Mattel shares have fallen about 25% since February, since Trump began discussing tariffs in more detail for the first time. By comparison, the larger S&P 500 index fell by about 8% during the same period.
"The shape of the toy industry has indeed changed. The company said on a revenue call that it is ready to increase direct imports to help stores retain stocks on shelves.
"Can we spin more American productions? Yes. Will it be in the next five to 10 years? Probably not," Benway said.
Ford also viewed the annual outlook that was shelved this week as citing a lack of clarity on potential retaliation tariffs in other countries and consumer reactions to higher prices. It joins other automakers, including Dodge and Ram manufacturers Stellantis, Volvo and Mercedes-Benz, to pull its annual guidance.
Ford CEO Jim Farley warned that the company's hit by tariffs would be "huge". Mexico, which Ford sells in the United States, has built several models, including the popular electric Mustang Mach, Calfs's pickup truck and Mustang sport.
Trump has somewhat alleviated his stance on tariffs, but so far, no deal has been achieved. This puts both large and small companies in great uncertainty, with these trading responsibilities likely to reach their lowest point.
Meanwhile, despite immediate economic relief activities, Trump continues to downplay the potential impact on consumers of tariffs. He told NBC News' Kristen Welker on Sunday that in some cases Americans should do less.
"I just said (the Americans) don't need 30 dolls, they can have three dolls," he said. "They don't need 250 pencils." "They can have five."
Other companies are publishing multiple forecasts that take into account different economic plans. United Airlines said last month: "The single consensus no longer exists, so the company's expectations have become twin peaks - either the U.S. economy will remain weak but stable, or the U.S. could fall into recession." Most other major airlines, including the U.S., Delta and JetBlue, also warned of lower revenues or suspended some guidance.
Even some tech companies, many of them are considered largely unaffected by tariffs, suggesting they can no longer predict near-term financial results. These include Snapchat Parent Snap, which refuses to release guidance in the second quarter. But so far, stock investors have relatively old choruses about the company’s growing choir, and they admit they can’t browse in their current environment.
Last week, the S&P 500 returned to its "Liberation Day" speech ahead of Trump's "Liberation Day" speech on April 2, even though the index ended on Monday in the red Monday and was struggling again on Tuesday.
“It’s a tricky moment for investors,” said Jan Hatzius, chief economist at Goldman Sachs, in a recent note to clients. “While the economy feels better than expected so far, it’s still early,” he said, all things considered could dissipate in the face of “significant ups, supply chain disruptions and unemployment.”
Other major companies reporting earnings this week include Disney, Burger King Restaurant International, Warner Bros. Discovery and Uber.