The “liberation day” tariffs announced by President Donald Trump on April 2 are having a wide range of effects on businesses, from those in auto manufacturing to CPG and even services firms. Of all the publicly traded companies on the S&P 500, just over 160 did not cite the effects of tariffs on their most recent quarterly earnings calls. This cohort represents a range of industries including healthcare, insurance, media, consumer tech and energy. The Wall Street Journal reported that by the end of May, 2,000 U.S. publicly traded companies mentioned tariffs on earnings calls, the greatest number in quarterly data that goes back to 2016. Some are directly affected. The consumer cyclical, consumer defensive, basic materials and industrial sectors are being heavily affected by tariffs, with companies such as Tesla, Nike, Ford, General Motors, Kenvue, FedEx and Kraft Heinz all reporting nine- to 10-figure headwinds due to tariffs.

### Consumer cyclical
The consumer cyclical sector includes companies that sell nonessential goods and services that consumers purchase when disposable income is high. Retailers, automakers and apparel brands have significant exposure to the impact of tariffs. The large financial impact means costs are being passed to consumers in order to mitigate the financial impact on the company. Tesla's earnings call highlighted that tariffs have increased its costs by approximately $300 million this quarter, impacting both automotive and energy sectors, with further cost increases expected in the future. Despite these challenges, Tesla reported improved margins and a 19% increase in automotive revenue, driven by higher average selling prices and product mix, said CFO Vaibhav Taneja. “Despite this business having the largest impact from tariffs, we are seeing customers willing to accept some of the tariff impacts,” said Taneja. Some of the biggest tariff‑related impacts were felt by Detroit‑based GM and Ford. GM's earnings call highlighted a significant financial impact from tariffs, with a net tariff cost of $1.1 billion in Q2 and an expected full‑year impact of $4 billion to $5 billion, affecting margins and cash flow, said CFO Paul Jacobson. “We are making solid progress on our mitigation efforts and remain on‑track to offset at least 30% of this impact, with roughly one‑third coming from each of our key actions: manufacturing adjustments, targeted cost initiatives and consistent pricing,” said Jacobson. Ford reported a strong financial performance with a record $50 billion in revenue in Q2, but highlighted a significant $2 billion headwind from tariffs for the year, which it is working to mitigate through $1 billion in recovery actions, said CEO Jim Farley. “We've been working hard with the administration so auto workers and customers are not disadvantaged by policy change. Our bet is not to compete in high‑volume generic segments that typically require overseas production for cost competitiveness. Instead, we are doubling down on what we do best: trucks, iconic passion products, Ford Bronco and breakthrough technology that you will soon see in our forthcoming electric vehicle platform,” said Farley, on the earnings call.

Nike said newly issued tariffs are creating significant cost headwinds, with an estimated $1 billion gross incremental cost increase, impacting gross margins by approximately 75 basis points for fiscal ’26. Lululemon highlighted the financial impact of increased tariffs, leading to a projected 110 basis point decrease in gross margin for the year, compared to previous guidance. In Hasbro's earnings call, the company highlighted that while tariffs remain a challenge, the financial impact is less severe than previously anticipated, with expected expenses now at the lower end of the $60 million to $180 million range. Despite a $1 billion non‑cash goodwill impairment charge in the consumer products segment due to tariffs, Hasbro is optimistic about future growth.

Amazon highlighted uncertainty about the impact of tariffs, particularly concerning China — which is negotiating a trade deal with the U.S. — and the potential for increased costs once pre‑bought inventory is depleted. It has not observed any negative effects; however, it remains unclear who will absorb any future cost hikes. Companies, such as Lowe’s, are using advanced pricing tools to balance elasticity and profitability, shifting sourcing away from tariffed countries, investing in U.S. manufacturing and pre‑buying inventory to remove exposure.

### Consumer defensive
The consumer defensive sector is a collection of companies that provide essential goods and services, the demand for which is stable regardless of economic conditions and are considered necessities that consumers are unwilling or unable to cut from their budgets. Exposure to tariffs in this sector varies widely, with companies that source domestically, such as grocery giant Kroger, seeing minimal impact. Tariffs on agricultural commodities, such as coffee and cocoa, and packaging materials such as steel and aluminum, are generating high costs for companies, often affecting input costs rather than finished goods directly.

Keurig Dr Pepper anticipates negative impacts from tariffs on coffee and commodity inflation in the latter half of the FY, despite strong financial performance in the first half, said CEO Timothy Cofer. “With tariffs and higher‑cost coffee hedges due to play a larger role in the coming quarters and given uncertain future category elasticity, we continue to expect some segment operating income pressure in the remainder of 2025,” said Cofer. Cocoa tariffs will have a significant impact on Hershey, which did not factor in the impact into its original guidance for the year. Despite this, the company is optimistic about potential tariff exemptions and is implementing a pricing strategy to counteract cost inflation, which could lead to margin recovery by 2026.

Procter & Gamble highlighted that tariffs are projected to cost the company $1 billion before tax for fiscal year 2026, impacting core EPS growth by five points, said CFO Andre Schulten. “While not all results are at the levels we aspired to deliver at the beginning of the year, growth in this environment is worth acknowledging. To be clear, there's more work to do to continue improving the areas in our control, which will be needed to offset the headwinds that are largely not in our control,” said Schulten.

Kenvue’s earnings call indicated that tariffs are expected to create nearly $150 million in costs by 2025. The company anticipates higher costs for imported products, which may not be fully absorbed this year, although they remain committed to minimizing consumer impact. Kenvue is the former consumer healthcare division of Johnson & Johnson.

Kraft Heinz highlighted that tariffs are expected to affect the company's financial performance by approximately 100 basis points this year, with a potential full‑year annualized impact of 180 basis points if tariffs remain unchanged, posing a challenge through 2026. The company is actively working with procurement and commercial teams to mitigate these effects amid ongoing high commodity inflation, particularly in meat and coffee.

For Brown‑Forman, the parent company of Jack Daniels and Woodford Reserve, tariffs were highlighted as a key challenge affecting financial performance, with a 6% decline in organic net sales in the U.K. attributed to macroeconomic and geopolitical uncertainties related to tariffs. The company anticipates a low‑single‑digit decline in organic operating income for fiscal 2026 due to geopolitical uncertainties and tariffs.

Conagra Brands highlighted its strategy to mitigate tariff impacts, particularly on tinplate steel, affecting the canned food segment, by implementing productivity measures expected to offset 1% of the 3% tariff‑related inflation. Conagra anticipates margin expansion driven by productivity improvements, supply‑chain investments and targeted pricing strategies, while focusing on growth in its frozen and snacks segments.

Successful mitigation tactics for companies in this sector include hedging programs for volatile commodities, sourcing flexibility, selective price increases to protect margins without losing volume and advocating for tariff exemptions in key commodities.

### Healthcare
There are generally less immediate and substantial impacts from tariffs in the healthcare sector, compared to other industries such as manufacturing. On Eli Lilly’s Q1 earnings call, chairman and CEO Dave Ricks warned the administration of the negative effect of possible retaliatory tariffs on both his company and the healthcare industry as a whole. “As a company, Lilly has a large U.S. manufacturing footprint with 10 active projects ongoing to build and expand new sites. However, we urge the administration to negotiate deals with key trading partners as soon as possible that level the playing field for American exporters like Lilly and remove harmful tariffs and non‑tariff market access barriers in the developed economies,” he said. On its Q2 call, the company indicated that while the potential impact of tariffs is dynamic, the effect for 2025 is expected to be modest and has been incorporated into its guidance. The risk in this sector lies in retaliatory tariffs abroad and trade agreement changes.

Regeneron Pharmaceuticals does not anticipate the 15% tariff on non‑generic pharmaceuticals to significantly affect its 2025 results, with a clearer assessment expected for 2026 and beyond as more details from the U.S.-E.U. trade agreement emerge. Edwards Lifesciences maintained its full‑year 2025 guidance, factoring in current tariffs, which are expected to exert less pressure than initially anticipated, though any changes in tariffs could significantly impact future financial outcomes. Cooper Companies, a medical device company, highlighted a $4 million negative impact from tariffs on this year's cost of goods, which is factored into its guidance. Looking ahead, if tariffs remain unchanged, the company anticipates a potential 3% negative impact on fiscal 2026 earnings, with plans to implement mitigation strategies once there is more clarity on tariff conditions.

Although there is uncertainty with how tariffs will affect the healthcare sector, companies have been employing mitigation strategies, such as waiting for regulatory clarity and implementing strategic pricing to absorb costs while they determine the magnitude of tariffs on the sector.

### Technology
Tariffs in the technology sector mainly increase the cost of goods sold and reduce gross profit margins. Apple reported $800 million in tariff‑related costs for the most recent quarter, and it expects these costs to rise to approximately $1.1 billion for the next quarter, reducing its gross profit margins, according to CFO Kevan Parekh. “Importantly, the color we're providing assumes that the global tariff rates, policies and application remain in effect as of this call, the global macroeconomic outlook does not worsen from today and the current revenue share agreement with Google continues,” said Parekh. Hardware and software developer Trimble is implementing surcharges and adjusting prices to neutralize the $10 million in tariff‑related costs incurred per quarter in the Field Systems segment and the costs’ effect on the company’s profitability.

### Industrials
Tariffs in the industrial sector can directly squeeze gross margins, forcing companies such as Idex Corporation and Hubbell to implement price increases on necessary products, respectively. Stanley Black and Decker reported a disruption in shipment schedules as a negative effect of tariffs in addition to a 2% decline in Q2 revenue and an estimated $800 million annualized tariff cost. Industries relying on cross‑border supply chains, such as machinery, aerospace and logistics, feel the immediate shocks of tariffs for companies such as FedEx, Delta Air Lines, Stanley Black and Decker and Idex. Tariffs significantly impacted FedEx’s financial performance with China to U.S. volumes dropping sharply post‑implementation, leading to flat international export revenue and a $170 million operating income headwind. Delta CEO Ed Bastian stated the company does not plan to pay tariffs on aircraft deliveries, expressing optimism about discussions in Washington and the recent U.K.-U.S. trade agreement that supports a tariff‑free aviation industry. “Our industry is one that's maybe unique in our country's economy, in which the size of the surplus that we throw off given the strength of our industry for aviation and aerospace, is the largest in the world, and this is not an area where tariffs would do anything but hurt U.S. companies and consumers,” said Bastian. Whereas companies such as Textron that are largely based in North America have not yet experienced significant impacts. However, these companies can benefit if tariffs disproportionately hurt foreign competitors due to raising costs especially for European and Brazilian competitors. Mitigation strategies in this sector lude localizing supply chains, passing costs onto customers and negotiating with policymakers to protect key industries and sectors.

### Basic materials
Section 232 tariffs benefit some domestic producers, such as steelmakers, by raising barriers for imports, giving them pricing power and market share. For example, Steel Dynamics, Nucor Corporation and Dupont de Nemours are reporting increased domestic production, strong EBITDA margins and competitive advantages. However, Dupont anticipates a $20 million tariff‑related headwind for the second half of 2025, primarily mitigated through strategic supply chain adjustments rather than price increases. While Nucor anticipates potential impacts from tariffs on Brazilian imports, their diverse raw material sourcing strategy is expected to mitigate significant financial impacts, offering upside if tariffs do not take effect as planned. Chemical and plastics producers face export declines, especially due to retaliatory tariffs such as China’s 100% polyethylene tariff, negatively affecting LyondellBasell Industries and Dow, among other companies. Decreased EBIT margins from commodity swings and changing demands has impacted Dow and Eastman Chemical Company, with the latter projecting a $20 million issue spread from Q2 to Q4 due to the volatility and disruption on the Fibers business. The sector’s strategies for mitigation are to increase domestic production, make strategic supply chain adjustments, diversify sourcing to reduce exposure to heavily tariffed countries, increase prices where demand can bear them, and wait for clarity on certain trade policies.

This story first appeared on PRWeek U.S.

In-depth: How companies are talking about tariffs on earnings calls

The article examines how U.S. publicly traded companies across various sectors discuss the impact of tariffs announced by President Donald Trump on April 2, 2025, in their Q2 earnings calls. It highlights specific cost figures, mitigation strategies, and the varying severity of tariff effects from consumer cyclical to healthcare and technology companies.