FT News Briefing US companies endure tariff whiplash
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Feb 5, 2025 Alphabet’s cloud services disappoint as U.S. companies face turmoil due to turbulent tariffs, forcing them to rethink supply chains. China retaliates, impacting tech giants like Google and Nvidia. Meanwhile, India is set for a remarkable IPO year, attracting domestic investors despite a slowing economy. The dynamics of U.S. trade relations complicate the landscape, with opportunities emerging against a backdrop of rising valuations and economic challenges.
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Alphabet's Earnings Miss
- Alphabet missed Wall Street's revenue expectations by about a billion dollars.
- Cloud revenue fell short, and share prices dropped 7% after the announcement.
Tariff Whiplash and Automakers
- U.S. companies, including automakers, face supply chain disruptions due to Trump's tariff threats.
- The car industry is particularly vulnerable due to integrated North American supply chains.
Companies Respond Cautiously
- Companies are cautious in their responses due to uncertainty and fear of antagonizing the administration.
- Tyson Foods, a major meatpacker, plans for retaliatory tariffs, especially concerning pork exports to Mexico.