The CEO of a major corporation has spoken out clearly: 'The tariff war will destroy everything!'

PepsiCo likewise pointed out that 'sluggish' consumer sentiment and tariffs are the reasons behind its downward revision of full-year core earnings per share guidance on a constant-currency basis. As one of the first large publicly listed foodservice companies to report earnings, Chipotle also lowered the upper end of its full-year same-store sales growth forecast. Company executives stated that customer traffic began slowing in February—driven by diners’ heightened concerns about their personal financial situations—and this trend has continued through April. Chipotle CEO Scott Boatwright told analysts: "Our visitation research shows that consumers’ top reason for reducing restaurant visits is saving money due to economic concerns." Tariff ripple effects: No sector spared—from aviation to energy In aviation, American Airlines CEO Robert Isom stated that aircraft costs have already become prohibitively high, calling tariffs "illogical." As a result, the company withdrew its 2025 financial guidance and indicated it would neither absorb these added costs nor expect customers to welcome them. Additionally, Delta Air Lines, Southwest Airlines, and Alaska Airlines have all withdrawn their guidance amid mounting uncertainty about the U.S. economy. United Airlines unusually provided outlooks under two distinct scenarios. Robin Hayes, CEO of Airbus Americas, noted that global tariffs will place "tremendous pressure" on efforts to improve industry supply chains. In transportation and industrial sectors, major freight railroad Norfolk Southern warned that tariffs could slow shipments of automobiles and intermodal containers. Boeing stated that the trade war would force it to seek alternative buyers for certain aircraft. 3M CEO William Brown candidly admitted, "Tariffs will be a headwind this year," and said the company would respond by adjusting production, cutting costs, and raising prices. RTX warned that if tariffs persist through year-end, its pre-tax operating profit could suffer a hit of up to $850 million. General Electric announced plans to raise prices to offset approximately $500 million in additional costs. In the energy sector, John Ketchum, CEO of NextEra Energy—the largest U.S. electric utility—said tariffs will increase the cost of gas-fired power generation units at a time when electricity demand is growing at an unprecedented pace. U.S. oilfield service providers Halliburton and Baker Hughes warned that the trade war could hurt profitability, disrupt supply chains, and depress oil prices. Baker Hughes expects tariffs could reduce its EBITDA by up to $200 million this year—roughly 4%.

How do multinational corporations view the pandemic and its impact on supply chains?

Cost pressures: Companies actively manage costs; most have implemented price increases—but these may not fully offset rising expenses. Most companies believe pricing pressures may persist. Abbott anticipates inflationary pressures will ease at some point in the future. Avery Dennison reported that pricing pressures continued to rise in Q2. BP stated it expects energy prices to remain volatile and strong in the medium to short term. SKF indicated inflation could persist through Q2 2022—or even throughout the entire year. Emerson Electric expects inflation to continue into H2 2022. Sensata Technologies forecasts inflationary pressures lasting through Q3. Kimberly-Clark anticipates ongoing inflationary impacts throughout the year. H&M believes input-cost conditions in Q3 and Q4 will worsen relative to Q2. Colgate-Palmolive predicts raw-material cost increases will peak in the second half of the year. Companies are adopting proactive cost-management strategies—including redesigning production and logistics processes—to cope with pricing pressures. Avery Dennison is managing rising costs through sustained price increases and product re-engineering. ABB mitigated some cost pressure via pricing management and higher output volumes. 3M leverages data analytics to drive daily operations and responds to inflation by extending delivery lead times and increasing inventory levels. Otis noted that higher installation and materials productivity, coupled with lower bad-debt expenses, largely offset inflationary impacts. Emerson Electric emphasizes regional business models to avoid cross-continental logistics. Corning avoids losses by maintaining strong supplier relationships, co-locating manufacturing with customers, and implementing price increases. Aptiv closely monitors its cost structure and states that, if direct relief from cost increases proves unattainable, it will act via SG&A management and product redesign. Ford Motor Company reduces costs—for example, by lowering dealer incentive payments. Volkswagen’s hedging mechanisms against rising raw-material costs have taken effect. Kimberly-Clark employs cost-saving measures and optimized productivity deployment. Mondelēz International manages costs through targeted price adjustments, enhanced productivity and sales volume, and increased inventory. Compared to raw-material cost hedging, Amphenol relies more heavily on frequent, high-touch communication with customers. Lam Research believes transient cost increases should be managed operationally—not passed on to customers. Microsoft continues to boost utilization rates and productivity to counter pricing pressures. Some companies’ price increases have successfully covered cost-increase losses. AkzoNobel reported that a 17% price hike fully offset rising raw-material and transportation costs in its paints and coatings business. 3M expects pricing actions in 2022 to fully offset inflationary impacts. Caterpillar stated current pricing broadly offsets increased manufacturing costs. A.O. Smith said price increases have offset rising material and transportation costs, and expects further hikes of 2%–12% in the second half of the year to take effect. Volvo stated that price increases and technological transformation have collectively offset all material-cost increases in Q1. SKF offset rising component, logistics, and energy costs through pricing—70% of its organic operating-profit growth was driven by pricing. Luxury and discretionary consumer goods companies—including Kering, Estée Lauder, and LVMH—have already raised prices to partially offset cost impacts. Micron Technology reported outstanding cost-control performance, achieved through improved production efficiency, technological innovation, and rational product pricing.

3M Lifts Annual Profit Forecast on Cost Controls and Price Hikes

Oct 20, 2026

3M raised its full-year adjusted profit per share forecast to $9.10-$9.15, driven by cost controls and higher prices. Quarterly revenue reached $6.6 billion, up 4.2%, supported by growth in semiconductor-related markets.

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3M Lifts Annual Profit Forecast on Cost Controls and Price Hikes

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