News Summary

Major companies in Georgia are expressing concern over their financial prospects due to ongoing trade tensions and rising tariffs. The impacts of President Trump’s trade war are dampening consumer confidence and business sentiment. While the job market shows some resilience, with 177,000 jobs added, many businesses are struggling to navigate the complexities of the new tariff landscape. Companies like Carter’s and Delta Air Lines are adjusting their forecasts in light of increased costs and market volatility, prompting calls for clarity in trade regulations to stabilize the economy.

ATLANTA – Companies across Georgia are grappling with uncertainty as the effects of President Donald Trump’s trade war and rising tariffs continue to take a toll on economic forecasts. Major businesses in the state, including Delta Air Lines, Carter’s, UPS, and Newell Brands, are expressing concerns over their financial outlooks due to these fluctuating trade conditions.

The trade war has notably dampened consumer confidence and overall business sentiment. A report indicated that the U.S. economy had contracted by 0.3% in the first quarter, largely because businesses rushed to import goods prior to the implementation of new tariffs. This rush has led to added volatility in the markets and created challenges for businesses trying to navigate the evolving landscape.

In April, the U.S. economy added 177,000 jobs, which was a slight decrease from March’s revised figure of 185,000. Nevertheless, this figure surpassed economists’ expectations, who had predicted a mere 135,000 new jobs. The unemployment rate in the nation remains steady at 4.2%, indicating some resilience in the job market despite external pressures.

UPS CEO Carol Tomé has pointed out that the prevailing uncertainties in global trade policies have negatively affected consumer confidence and demand in business sectors. As companies navigate these challenges, many are considering strategies to offset rising tariff costs, including increasing retail prices and seeking assistance from suppliers.

The implementation of a new 145% tariff on numerous goods imported from China has introduced a significant layer of complexity, particularly for small and medium-sized businesses that depend heavily on these imports. A poll highlighted that only 43% of Georgia voters now expect economic improvement under the Trump administration, a significant drop from 56% at the beginning of his presidency. Furthermore, almost 60% of survey participants noted they are minimizing purchases as they await clarity on trade negotiations.

The impact of tariffs has led Carter’s, a notable children’s apparel company, to suspend its financial outlook temporarily, citing both the high tariffs and a change in leadership as key factors influencing its decision. Newell Brands, another major player, has revised its cash flow projections for 2025 due to the increased tariffs. Delta Airlines is also predicting fluctuations in its revenues, expecting a potential growth or decline of 2% by 2025.

Economists caution that tariffs essentially act as taxes that are borne by American businesses and consumers rather than foreign governments. This sentiment is echoed throughout Georgia’s business community, especially among those connected to the agricultural and manufacturing sectors, where increasing tariffs are severely impacting exports such as poultry and auto parts.

The Georgia Ports Authority has reported a noticeable uptick in business activity as companies stockpile goods in anticipation of increasing tariffs. Business leaders are advocating for a stable trade environment, emphasizing the pressing need for clarity regarding tariff regulations which would support better economic planning.

Concerns are mounting among suppliers and industries with strong reliance on imports, highlighting the challenge of mitigating tariffs without jeopardizing their business models. The long-term impact of the tariffs on the market remains uncertain, causing many companies to postpone investment decisions until a more definitive trading landscape emerges.

To adapt to the changing environment, numerous Georgia firms are advised to diversify their supply chains and lessen their dependence on imports from countries facing high tariffs. This shift may help businesses manage the complexities and uncertainties introduced by the ongoing trade conflict and associated tariffs.