The global economy is bracing for potential aftershocks as major consumer goods companies are actively strategizing responses to anticipated tariff increases imposed by the Trump administration. According to Javier García Ropero (2025), writing for El País, giants like H&M, Puig, Kering, Levi Strauss, and Adidas are preparing for significant market adjustments in the face of these protectionist trade policies.
Impending Tariffs and Corporate Reactions
The business world is keenly awaiting the definitive list of tariffs that the U.S. government will impose on incoming products. Sectors such as food, textiles, and personal care are holding their breath, as the world's largest consumer market leans towards a protectionist commercial policy. This shift could trigger a ripple effect, impacting inflation, consumer spending, and the financial performance of these companies, including those already established in the U.S. (García Ropero, 2025).
The looming threat of a generalized 25% tariff on goods from the European Union, along with already confirmed measures on products from Canada, Mexico, and China, is causing considerable alarm among publicly traded groups. Tariffs of 25% are slated for Canada and Mexico, with an additional 10% (up to 20%) for China. These companies had initially projected their 2025 financial forecasts without anticipating such drastic tariff scenarios, particularly within the U.S.
Dirk van de Put, President and CEO of Mondelez, the multinational corporation behind Oreo cookies, acknowledged that their annual forecasts did not account for potential U.S. import tariffs or retaliatory measures from other countries. «An import tariff on Mexico and Canada would create an additional obstacle to business,» Van de Put stated (as cited in García Ropero, 2025).
Strategies to Mitigate Tariff Effects
Several companies are contemplating price increases as a direct response to these tariffs. Puig, the Spanish cosmetics and perfumery company, mentioned in their annual results presentation in late February that their outlook for the year did not factor in a 25% tariff. Marc Puig, president of the company, indicated that passing part of the cost onto the product price is a likely strategy.
«A part will be transferred to the product price,» Puig stated at a forum organized by Expansión (as cited in García Ropero, 2025). This mirrors the approach being considered by other major players in the sector as they await confirmation from the Trump administration.
H&M, a global leader in the textile industry, also anticipates an impact on American consumers. Daniel Érver, CEO of H&M, acknowledged that «a tariff increase will have an impact on the American consumer and on prices» (as cited in García Ropero, 2025). Meanwhile, Francois-Henri Pinault, Chairman of Kering, the luxury group owning brands like Gucci and Balenciaga, suggested they would adjust their pricing strategy accordingly. «If we have to raise prices, we will raise them,» Pinault affirmed (as cited in García Ropero, 2025). Similarly, Harmit Singh, CFO of Levi Strauss, and Fernando Fernández, the new CEO of Unilever, have expressed similar sentiments about accelerating price increases due to material inflation.
Alternative Approaches and Potential Disruptions
Some companies, like Inditex, which counts the U.S. as its primary market in terms of sales, are more cautiously optimistic. Inditex hopes to leverage its extensive manufacturing network to offset any tariff-related impacts. Other major groups are exploring shifting the origin of their products sold in the U.S. to countries not on the «blacklist» to avoid potential effects on their bottom lines.
Nike has already felt the pinch, reducing its year-end forecasts for sales and margins due to tariffs on goods from China and Mexico. The sportswear giant imports 18% of its shoes from China and has a significant production presence in North America. Puma faces a similar situation, importing 10% of its U.S.-bound products from China this year. Puma acknowledges accelerating shipments to preempt the tariff and has factored this threat into its revised forecasts.
Adidas, on the other hand, views the situation with relative calm, exporting only 4% of its U.S. sales from China. Bjorn Gulden, CEO of Adidas, is less concerned about direct tariff effects and more focused on the collateral damage. «Those who source from China will, of course, raise prices, and that will cause inflation. And when that happens in a specific sector, volumes fall. That can impact us, and it worries me,» Gulden explained (as cited in García Ropero, 2025).
- Rising tariffs will impact consumers.
- Companies will need to adjust prices or supply chains.
- The overall economic environment will become more uncertain.
In summary, businesses are adapting by potentially increasing prices, adjusting supply chains, and hoping for the best despite the uncertain economic landscape. This period of adjustment could lead to significant shifts in the consumer goods market in the U.S., potentially impacting spending and inflation.
The coming days will be critical in clarifying the scenario. As the Trump administration finalizes its protectionist measures, companies must meticulously analyze the consequences for their financial results and potentially update their annual objectives in upcoming earnings presentations.
According to Europa Press, the Spanish government remains hopeful that the tariff policies will not be overly detrimental to Europe. Foreign Minister José Manuel Albares emphasized the historically «very beneficial» relationship between Europe and the U.S., expressing hope that it will «be maintained and strengthened» (as cited in García Ropero, 2025). He defended Spain's and the EU's commitment to free trade and their belief in dialogue as a means to resolve disputes. European Commission President Ursula von der Leyen stated that Brussels has a «solid plan» to counter any decision made by Trump (as cited in García Ropero, 2025).
Reference
- García Ropero, J. (2025, April 2). Los gigantes del gran consumo responderán con subidas de precios a los aranceles de Trump. El País. Retrieved from https://elpais.com/economia/2025-04-02/los-gigantes-del-gran-consumo-responderan-con-subidas-de-precios-a-los-aranceles-de-trump.html
