Pepsi, Chipotle, P&G cut earnings forecasts

From Procter & Gamble to Chipotle, consumer companies are slashing their forecasts, projecting that tariffs will weigh on their profits and put more pressure on an already shaky consumer.

At least a dozen companies have cut or pulled their full-year outlooks so far this earnings season, with several more weeks of quarterly reports still on deck.

For many companies, tariffs mean higher prices on key commodities, like Peruvian avocados or saccharin to make toothpaste, which will eat into their earnings. But the uncertainty bred by the trade war is just as damaging to businesses’ bottom lines as consumers pull back their spending.

The cautious projections come in the middle of a 90-day pause of the higher rates under President Donald Trump‘s so-called reciprocal tariff plan. Until early July, most imports will face a duty of 10%, excluding goods from China — which are subject to 145% duties — along with aluminum, cars and other nonexempt items.

Still, the situation changes almost daily. Treasury Secretary Scott Bessent told investors in a closed-door meeting on Tuesday he expects “there will be a de-escalation” in Trump’s trade war with China in the “very near future.” The White House also said Wednesday that automakers could win exemptions for some tariffs.

“Aircraft cost too much already. I don’t want to pay any more for aircraft,” American Airlines CEO Robert Isom said Thursday. “It doesn’t make sense. And certainly, we’re pulling guidance. Certainly, this is not something we would intend to absorb. And I’ll tell you, it’s not something that I would expect our customers to welcome. So we’ve got to work on this.”

Tariffs worldwide, including retaliatory ones and not just those in the U.S., will “really pressure” progress in improving the industry’s supply chain, Airbus Americas CEO Robin Hayes said at a Wings Club luncheon in New York on Thursday. The U.S. aerospace industry has a trade surplus, helping soften the country’s overall deficit.

Calls are growing among airlines and aerospace suppliers to reinstate the terms of a more than 45-year-old agreement that allows the industry to operate mostly duty-free. Other industries are also pushing for exemptions from tariffs.

But barring cuts in tariff rates or new carveouts for goods, travel isn’t the only sector that will see price hikes. P&G, Keurig Dr Pepper and Hasbro all said Thursday that they could raise prices in the near future to offset higher costs.

“There will likely be pricing [changes] —…