Companies across many sectors are struggling to measure the full impact of tariffs because the policy landscape keeps changing—sometimes daily or weekly—about where taxes will be imposed, delayed, or negotiated. Some tariffs remain in force against key U.S. trading partners while others have been postponed to allow time for negotiations. That uncertainty has complicated corporate planning and helped produce uneven financial forecasts in recent earnings reports. Below are the ways several large companies are responding to the shifting tariff environment.
Kimberly-Clark
Irving, Texas–based Kimberly-Clark, maker of brands such as Huggies and Kleenex, expects tariffs to add roughly $300 million in costs this year and has warned that earnings could be flat for the year. The company says about 20% of its U.S. costs are exposed to tariffs, with the largest portion of the estimated $300 million impact tied to U.S. duties on imports from China.
To limit the damage, Kimberly-Clark is adjusting its supply chain where possible, shifting sourcing and production to reduce tariff exposure and seeking other efficiencies across its global operations. Management says the elevated cost environment is higher than the assumptions it used at the start of the year and will influence its cost structure going forward.
3M
3M, the diversified manufacturer known for adhesives, coatings, Scotch Tape and Post-it notes, acknowledged that tariffs represent a meaningful headwind. The company maintained its full-year profit guidance of $7.60 to $7.90 per share excluding tariff effects, but provided a sensitivity analysis showing tariffs could reduce earnings by about $0.20 to $0.40 per share after taking into account mitigation efforts.
Those mitigating actions include targeted cost reductions and selective price increases where feasible. 3M is also evaluating alternative production locations and sourcing strategies to diversify country-of-origin exposure and help blunt the financial impact of new or expanded duties.
RTX
Despite having most of its industrial base and supply chain inside the U.S., RTX—the defense and aerospace supplier of missile, radar and avionics systems—anticipates substantial tariff-related costs. The company estimates up to $800 million in tariff impacts from duties affecting imports from Canada, Mexico, China and other countries, though that exposure was not built into its formal earnings forecast.
Company leadership noted that aerospace and defense historically operated in a largely duty-free environment, a condition that has supported the industry’s trade position. The introduction of duties changes that context and raises costs for OEMs and suppliers across the sector.
GE Aerospace
GE Aerospace, a leading maker of jet engines and aviation systems, also expects a sizable tariff hit but says it will pursue mitigation strategies. The company projects roughly $500 million in tariff-related costs after accounting for programs designed to offset some of the impact, such as expanding foreign-trade zones and other trade-facilitation measures.
Management continues to push for trade policies that restore low or zero tariffs within the aviation supply chain, arguing that a stable, level playing field is important for competitiveness, while acknowledging that higher duties will translate into additional costs for the company and its suppliers in the near term.
Flexsteel Industries
Flexsteel, a manufacturer of household furniture, faces a dual challenge: tariff risk combined with potential weakness in consumer spending. The company has relocated manufacturing out of China and now derives a large share of revenue from Vietnam—about 55%—while Mexico supports almost 40% of sales.
If a proposed reciprocal tariff on certain imports from Vietnam—reported at 46% and currently delayed—were to take effect, Flexsteel warns it would have widespread consequences for the company and the broader U.S. furniture industry. Management also highlighted the possibility that higher tariffs could dampen U.S. consumer spending, which in turn would affect demand for furniture. The company’s near-term sales guidance for the current quarter ranges from $109 million to $116 million but remains subject to change depending on tariff developments and consumer behavior.
Earnings reports and tariffs
Ongoing uncertainty around tariff policy and the broader trade picture has made it difficult for companies to provide precise guidance. Tariff announcements, delays and negotiations have shifted frequently, complicating cost forecasting, pricing decisions and long-term supply-chain planning. Some government officials have suggested the potential for de-escalation in trade tensions, but formal outcomes remain uncertain, and businesses continue to plan for multiple scenarios.
Tesla
Tesla is somewhat insulated because most of its U.S. vehicles are built domestically, but the company still relies on internationally sourced materials and components that could face import taxes. Its energy business is particularly exposed: Tesla sources LFP battery cells from China, and management warns that tariffs could have an outsized impact on those operations.
Recent trade strains have also had operational effects in China, the world’s largest electric-vehicle market. At one point this month Tesla temporarily stopped taking mainland China orders for certain models while it adjusted to market and regulatory developments. CEO Elon Musk has said he believes lower tariffs generally support broader prosperity, while acknowledging that tariff policy is ultimately a governmental decision that can change market conditions quickly.
Akzo Nobel
Akzo Nobel, the Amsterdam-based paints and coatings company, says its main risk from tariffs is reduced demand rather than direct production disruption. The firm reports that nearly all finished goods sold in the U.S. are produced locally and most raw materials are also sourced in-market, reflecting a deliberate strategy to localize procurement and manufacturing over time.
Akzo Nobel emphasizes that it operates China predominantly for the China market and uses other parts of Asia as export bases. Nevertheless, broader tariffs that slow economic activity or squeeze consumer budgets could weigh on sales across multiple end markets, from automotive coatings to DIY retail segments.
Boston Scientific
Boston Scientific, a global medical device manufacturer, expects most tariff impacts to materialize in the second half of the year but believes it has the flexibility to absorb those costs. The company has raised its overall earnings and revenue outlook despite tariff pressures, estimating roughly $200 million of tariff-related effects in 2025 and outlining plans to offset that through stronger sales and reductions in discretionary spending.
The company noted its long-standing, diversified global supply chain and significant investments in U.S. capacity as factors that help manage exposure, while continuing to monitor trade developments that could affect component costs and pricing.
Main image courtesy of ChrisBoland.com.