Major global companies, especially in autos, consumer goods and food are beginning to signal that the latest round of U.S. tariffs under Donald Trump may be less of a shock than initially feared.
Despite advanced warnings of more than $35 billion in tariff-related costs, the first wave of third-quarter results reveals many firms have offset the impact through cost-cutting, pricing strategies, or shifting production footprints. For instance, Volvo Cars, highly exposed to U.S. tariffs, reported a gross profit margin of 24.4 % for the quarter, up from 17.7 % previously. CEO Håkan Samuelsson remarked: “What we’re now seeing is really … delivering faster than we thought.”
Likewise, Unilever and Adidas out-performed expectations by focusing on premium segments and streamlining operations. However, the landscape remains uneven: companies such as Michelin and Essity flagged tougher conditions in North America, where demand remains weak and cost pressures persistent.
Analysts say the early signs of resilience are welcome, but caution remains. The full effect of tariffs may still ripple through supply chains, inflation and consumer spending. As many investor-watchers note, “resilience may mask risk,” especially if the policy environment remains volatile and companies are forced to raise prices or relocate production.
