Trump’s trade war has cost firms $34 billion — Reuters

Companies in the US, Europe and Japan have reported lost sales and higher costs due to the “erratic” nature of the tariffs

Multi-national companies have suffered $34 billion in losses due to tariffs imposed by US President Donald Trump, according to a Reuters analysis. The measures have disrupted businesses and heightened tensions with Washington's key allies, notably the EU.

The report, based on disclosures from 56 firms across the US, Europe, and Japan, attributes the losses to higher input costs, revenue losses, and supply chain uncertainty. Economists have warned the real cost could be far higher, owing to ripple effects including weaker investment, reduced consumer spending, and rising inflation risks.

Trump has rolled out sweeping duties since returning to office in January, in the name of protecting US manufacturing which culminated in his “Liberation Day” tariffs on April 2 that included a universal 10% levy on all imports and a threatened 50% rate on EU goods.

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“The Administration has consistently maintained that the United States, as the world’s largest economy, has the leverage to make our trading partners ultimately bear the cost of tariffs,” said White House spokesperson Kush Desai. However, data suggests American businesses are footing the bill, while relations with Washington’s allies have grown increasingly strained.

The EU prepared countermeasures targeting €100 billion worth of American goods, including cars, medical devices, and plastics. After a call between Trump and European Commission President Ursula von der Leyen, the 50% duties were delayed until July 9 to allow room for negotiation.

Apple, Ford, Kimberly-Clark, Walmart, and others have warned of rising costs and lowered their own forecasts, blaming Trump’s “erratic” trade approach, Reuters reported. One of the few to endorse the measures is General Motors, which has backed the auto tariffs, arguing they allow US automakers to compete more fairly.

Trump has defended his tariff strategy as a way of reshoring jobs and reducing the trade deficit. “We’re going to raise hundreds of billions in tariffs; we’re going to become so rich we’re not going to know where to spend that money,” he said in March.

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According to the Tax Foundation, tariffs imposed and scheduled for 2025 are projected to raise $152.7 billion in federal revenue, equivalent to 0.49% of GDP, the largest tax increase since 1993.