Tariff Mentions Surge Past AI in Earnings Calls

In 2025, tariffs have emerged as a significant focus during corporate earnings calls, overtaking the previously dominant topic of artificial intelligence. According to a recent analysis, the term “tariffs” has appeared in over 350 calls from S&P 500-listed companies reporting first-quarter results, a sharp rise amid the escalating trade policies advocated by President Trump. As concerns grow about the impact of these tariffs on the economy, executives indicate that their companies are bracing for potential downturns, which may affect financial projections and consumer sentiment.

Tariffs Taking Center Stage

The word “tariffs” has gained unprecedented attention in the corporate landscape, marking a shift in focus during earnings calls this year. Notably, a CNBC analysis reveals that tariffs were referenced over 350 times by companies listed in the S&P 500 during their first-quarter earnings results. In stark contrast, mentions of “artificial intelligence,” a previously popular topic, have yet to reach 200 instances.

This shift is closely tied to the recent announcement of President Trump’s aggressive tariff policies, which have put corporate executives and investors on high alert. The timelines for these tariffs, including the recent intention to implement steep levies, have created a palpable sense of urgency within boardrooms, redirecting discussions that would otherwise focus on growth and technological innovations.

Business Leaders Voice Concerns

Numerous CEOs voiced their apprehensions regarding the implications of these tariffs for their organizations. In an April survey, over 60% of CEOs expressed expectations of an economic slowdown within the following six months. The anticipated tariffs are seen as a potential economic damper, with nearly 75% of CEOs indicating that these levies would negatively impact their businesses. For example, Christopher Clulow, head of investor relations at Cummins, articulated the widespread sentiment, stating, “We are entering unchartered territory as the trade tariffs start to have a more significant impact beginning in the second quarter.” This recognition of uncertainty reflects a broader concern about business stability amid fluctuating trade policies.

Uncertain Economic Outlook

Tariffs not only create immediate pressure on companies but also complicate their long-term economic forecasts. Many firms indicated they were hesitant to revise their financial outlooks due to the unpredictable nature of tariffs. Some companies, like medical equipment maker Solventum, decided to maintain unchanged earnings per share guidance despite stronger-than-expected performance. The CEO, Bryan Hanson, noted the burden of tariffs, declaring, “To be clear, tariffs will be a headwind for us this year.” This caution suggests that businesses prioritize adapting to external pressures rather than rushing to present optimistic projections.

The overarching sentiment among executives is one of tightened budgets and revised expectations as the scope of tariffs evolves. With Trump’s announcement of a three-month suspension on reciprocal tariffs until early July, executives have found themselves in a challenging position. Effective strategies to assess future performance have been stymied by policy uncertainty, further complicating forecasting efforts.

Consumer Sentiment Declines

The ripple effects of tariff discussions aren’t limited to the corporate world; they are also resonating with consumers. The University of Michigan’s consumer sentiment index reported a significant decline in sentiment levels, reaching one of the lowest points since its inception in the early 1950s. This downturn is tied to growing consumer concerns about escalating prices due to tariffs on imported goods.

Jamie Iannone, CEO of eBay, highlighted the connection between tariffs and consumer confidence during an earnings call, stating that uncertainties surrounding tariffs have significantly affected small businesses and consumer perceptions of the economy. As these anxieties mount, consumers are likely to behave more conservatively regarding spending, further complicating the economic environment for businesses.

Disagreement Over Tariff Policies

Amid the swirling chaos of concerns about tariffs, some business leaders have taken a stand against current policies. Executives have openly criticized Trump’s tariff strategies in discussions with analysts, suggesting that they support U.S. governmental goals but do not believe tariffs are the most effective means of achieving those objectives. For instance, David Ricks, CEO of Eli Lilly, articulated, “We support the U.S. government’s goals to increase domestic investment. However, we don’t believe tariffs are the right mechanism.” This growing debate within corporate America underscores the urgency of re-evaluating trade policies to ensure they align with broader economic goals.

Summary

The emergence of tariffs as a primary concern during corporate earnings calls in 2025 highlights the shifting dynamics in the business world. As these policies stir anxiety about economic downturns and consumer sentiment declines, executives must navigate a landscape fraught with uncertainty. The ongoing discourse surrounding the efficacy of tariffs raises essential questions about achieving domestic investment goals without exacerbating economic challenges.

Frequently Asked Questions

Question: What are tariffs?

Tariffs are taxes imposed by a government on imported goods, aimed at increasing the price of imported items and protecting domestic industries.

Question: How do tariffs affect businesses?

Tariffs can increase costs for businesses relying on imported materials, leading to higher prices for consumers and potentially lower sales.

Question: Why is consumer sentiment important?

Consumer sentiment reflects people’s overall attitudes towards the economy, influencing their spending behavior and, consequently, economic growth.