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In a notable gathering on January 20, 2025, key figures from the tech industry, including CEO of Meta and Facebook Mark Zuckerberg, Amazon founder Jeff Bezos, Google CEO Sundar Pichai, and Tesla and SpaceX CEO Elon Musk, attended the inauguration ceremony of Donald Trump as the 47th US President at the Capitol Rotunda in Washington, DC.
As the earnings season continues, corporate executives are increasingly facing questions regarding tariffs, a significant concern steered by the rapidly evolving trade policies of the new administration. Mettler-Toledo, an industrial scales and laboratory equipment manufacturer based in Ohio, recently highlighted this issue during their earnings call, where Finance Chief Shawn Vadala pointed to ongoing global uncertainties and elevated geopolitical tensions.
America’s largest corporations, including those listed on the S&P 500, are experiencing a surge in inquiries about the implications of Trump’s trade and immigration policies on their operations. A CNBC analysis noted that the use of the term “tariff” on earnings calls has reached a peak not seen since 2020, indicating a growing concern among business leaders about the potential effects of policy changes.
Tariffs
Trump’s tariff plans have become a focal point for many companies. He had briefly enacted, then postponed, a 25% tax on imports from Mexico and Canada, alongside a 10% levy on China. In light of these developments, many businesses have expressed their uncertainty about how these tariffs might affect their operations. Over 190 calls with S&P 500 companies in 2025 have cited tariffs, with the conversations intensifying since Trump’s electoral victory became apparent.
For instance, during Marathon Petroleum’s earnings call, CEO Maryann Mannen indicated that studying tariffs was a top priority. Similarly, companies like Martin Marietta Materials are grappling with how these taxes could impact their profits, while Generac is preparing to counteract potential cost increases through operational adjustments.
The sentiment at many firms reflects a cautious approach; Cisco’s CFO, R. Scott Herren, referred to the evolving tariff situation as “dynamic,” signifying the unpredictability that businesses currently face.
Immigration
The issue of immigration has also seen heightened discussion, now appearing on the highest proportion of earnings calls since 2017. Trump’s commitment to significant deportations stands in stark contrast to the labor market dynamics and could introduce further inflationary pressures, according to critics.
Companies across various sectors are paying close attention to how immigration policies could impact demand and service availability. For instance, AT&T, Verizon, and T-Mobile have raised concerns that restrictions on immigration may reduce demand for their products, while some real estate firms are monitoring the labor market’s response to potential deportations. Despite these concerns, some firms, like Tyson Foods, have publicly assured that their workforce remains stable and legally authorized.
DOGE and the Gulf
With Trump’s return to office, new topics have entered the corporate lexicon. The establishment of the Department of Government Efficiency, or DOGE, has gained mention in stakeholders’ discussions, particularly regarding potential cuts to federal contracts that may affect publicly trading companies. CEO Bill Meaney of Iron Mountain views this mandate as an opportunity, suggesting that increased efficiency in government operations might benefit his company’s interests.
At the same time, the recent rebranding of the Gulf of Mexico to the Gulf of America, initiated by Trump, has sparked some corporate reactions. While Chevron embraced the new terminology during their earnings presentation, Exxon Mobil opted to retain the traditional name during their earnings call, showcasing a divergence in corporate branding strategies in response to political changes.
Source
www.cnbc.com