What are the CEOs of American companies saying during the earnings season? The uncertainty is too high, high-priced goods are about to increase in price, and the tourism industry is the first to be impacted

During this earnings season for U.S. stocks, an unusually clear signal has emerged from the mouths of many CEOs of large American companies: the continuously changing and unpredictable tariff policies are causing widespread and deep-seated concerns.

This high level of uncertainty not only severely disrupts normal business planning and profit forecasting, nearly paralyzing commercial planning, but also begins to erode consumer confidence, leading to price increases for high-ticket items such as cars and smartphones.

Among them, the tourism industry, which is sensitive to economic fluctuations, has already begun to feel the chill.

Planning Nearly Paralyzed, Economic Outlook Clouded

The erratic nature of tariff policies has made it "almost impossible" for companies to formulate future strategies and provide performance guidance.

American Airlines CEO Robert Isom candidly told investors, "We don't know what will happen next." The pervasive uncertainty directly translates into operational caution. "This means we won't hire as many people, we may not bring in as many planes, which means a reduction in overall economic activity." He added that consumers are also hesitant when planning large expenditures like vacations, stating, "No one likes uncertainty when spending hard-earned money."

Based on this "unpredictable" economic environment, American Airlines, Southwest Airlines, and Alaska Airlines have all indicated that leisure travel demand has shown signs of fatigue and have lowered their respective full-year performance outlooks. United Airlines even released two versions of its performance forecast, corresponding to scenarios of economic stability and recession.

Goldman Sachs CEO David Solomon warned that the current level of uncertainty is "too high," and is genuinely "affecting investment, spending, and planning, which will impact growth and the economy."

This stands in stark contrast to the optimistic expectations that prevailed in the industry during the early days of the Trump administration. Richard Branson, founder of the Virgin Group, bluntly stated that unpredictable trade policies could cause "lasting damage" to the economy, shaking the originally "very smooth" economic foundation.

Consumer Confidence Undermined, Price Increases Looming for High-Ticket Items

The shadow of tariffs is directly casting a pall over consumers, affecting their confidence and purchasing decisions.

Richard Fairbank, CEO of credit card issuer Capital One Financial, observed a dual phenomenon: on one hand, consumers seem to be increasing their purchases of big-ticket items like electronics and cars ahead of anticipated price hikes, temporarily boosting retail spending; on the other hand, the proportion of people paying only the minimum on their credit card bills has exceeded pre-pandemic levels, indicating that potential financial pressure is accumulating.

Meanwhile, several companies have explicitly warned that rising costs may eventually be passed on to consumers.

• Consumer goods giant Procter & Gamble, which owns brands like Pampers and Tide, has publicly stated that it is "considering" raising prices on some products.
• The automotive industry is even more urgent. Industry organizations representing major manufacturers like General Motors, Volkswagen, and Toyota have written to President Trump, urging him to reconsider the plan to impose a 25% tariff on imported auto parts, warning that this move will make "the cost of buying and repairing cars and trucks even more expensive."
• In the field of telecommunications, Verizon's CEO Hans Vestberg stated that if high tariffs are imposed on mobile phones, consumers will have to pay more for smartphones, as "it is impossible for the company to absorb it completely." AT&T's CEO John Stankey also believes that while mobile phones are the last thing consumers will give up, "unfortunately, for customers, we will have to come up with some new ways for them to digest this (cost) increase." In recent years, both companies have raised prices on some wireless and broadband plans. Recently, Verizon also launched a three-year price lock guarantee on some service plans to reassure customers.
• The real estate market is similarly not spared. Major residential builder PulteGroup estimates that tariffs will increase the cost of its newly built homes, which have an average price of $500,000, by about $5,000 (or 1%), as various building materials, from tile flooring to water heaters and circuit breakers, have been affected. Company Vice President James Zeumer emphasized that this will "impact every price point and consumer group we serve."

Diverse strategies to cope, from lobbying to supply chain adjustments

Under the "volatile" tariff policies, American companies are employing various tactics to meet the challenges.

The vast majority of CEOs have expressed concerns and frustrations about the current situation, hoping that the uncertainty of policies can end soon.

Tesla CEO Elon Musk, after the company announced disappointing quarterly results, could not hide his fatigue when discussing tariff issues, sighing deeply. He stated that he has always advocated for lowering tariffs to President Trump and will continue to do so, but ultimately "the decision-making power lies entirely with the President of the United States":

"Whether he will heed my advice depends on him personally."

In addition to executives speaking out and industry lobbying (such as the automotive industry), companies are also actively seeking internal solutions to mitigate the impact.

Flexibly adjusting the global supply chain is a common strategy for large multinational companies.

3M, which has thousands of products and 110 factories worldwide, emphasized the importance of maintaining relationships with the Chinese market (which accounts for 10% of the company's business and saw strong growth last year), according to its CEO William Brown.

He stated that 3M can leverage its global network to adjust the flow of goods, such as changing products originally shipped from the U.S. to China to be shipped from Europe, while also exploring various means such as utilizing free trade zones, adjusting pricing strategies, and optimizing global logistics "to mitigate some impacts and maintain our good business in China."

However, increasing investment in the U.S. does not seem to be an infallible "amulet."

Aerospace and defense giant RTX is spending nearly $350 million to expand its factories in Arizona and North Carolina, but the company expects that even after implementing cost-cutting measures, price increases, and applying for tariff exemptions, it may still face a potential hit of up to $850 million this year due to tariffs.

Its Chief Financial Officer Neil Mitchill's statement was filled with helplessness and confusion:

"Will these tax rates remain as announced? How long will they last? Can we further alleviate them in other ways? Will they be revoked and have other impacts? I don't know."

At the same time, there are clear voices supporting the tariff policy.

Mark Millett, CEO of steel manufacturer Steel Dynamics, believes that the tariffs on imported steel and aluminum are "extremely beneficial."

Whirlpool, an appliance manufacturer headquartered in Michigan with 10 factories in the United States, also believes that tariffs help "create a fair competitive environment."