Recent Q2 earnings have revealed a surprising twist for major US corporations as tariff policies boomerang back onto domestic businesses. These tariffs, meant to safeguard local industry, are instead delivering a heavy blow to profit margins.
General Motors reported a staggering $1.1 billion loss this quarter, with net profits plunging 35.4% year-over-year to $1.9 billion. Automaker Stellantis warns that first‐half losses could reach as high as $2.7 billion, underscoring the serious economic pressure on the sector.
Meanwhile, economic analysts at Citibank caution that further escalations in tariffs might squeeze profit margins even more across various industries. 📉
As domestic businesses grapple with these challenges, the ripple effects on the economy are becoming all too clear. Stay tuned for more updates as market trends shift and companies adapt to these unexpected hurdles.
Reference(s):
cgtn.com
