As President Trump’s trade policies ripple through the economy, companies are increasing prices, cutting staff, reworking supply chains and making other adjustments. They say that the moves are necessary because more consumers are starting to pull back their spending.
Retail sales slipped in May, data released on Tuesday showed, weighed down by a sharp decline in purchases of vehicles and building materials. That may reflect the hangover from an earlier surge of spending on big-ticket items before tariffs took effect. But restaurants and bars also saw a drop in sales last month.
A recent survey by McKinsey found that inflation and tariffs were the biggest sources of concern for Americans. Most respondents said they were changing their spending habits because of tariffs.
Several companies have noted a shift starting to show in their businesses. JetBlue’s chief executive said in a memo to staff on Monday that it has scaled back its operations as weaker demand for travel disrupts its plans for the year. Walmart, which warned that tariffs could spur higher prices, recently flagged “negative consumer sentiment” as having an impact.
As officials at the Federal Reserve monitor how the economy is reacting to Mr. Trump’s trade war, this is what some companies have said about prices, spending and the effect of government policies:
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JetBlue: The airline is reducing flight schedules, reorganizing its leadership team and pausing cabin refurbishments “to match weaker demand,” Joanna Geraghty, the company’s chief executive, wrote in a memo to staff on Monday.
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Procter & Gamble: The consumer goods giant said this month that it plans to cut 7,000 jobs, or about 15 percent of its nonmanufacturing work force. The company has said that it would probably raise some prices to mitigate the effects of tariffs, which it estimated would cost it around $600 million in its current fiscal year.
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Walmart: Consumer confidence has deteriorated because of “looming tariffs” and “immigration noise,” the retailer’s chief financial officer, John Rainey, said at an investor conference last week. Walmart warned last month that tariffs would soon force it to raise prices because it could not “absorb” all of the costs. In response, Mr. Trump called on Walmart to “EAT THE TARIFFS” and not pass the costs on to consumers.
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Lululemon: The clothing brand known for its leggings saw its shares tumble earlier this month after it said that it experienced lower traffic in its U.S. stores in its latest quarter because of economic uncertainty and inflationary pressures. It also cut its full-year profit forecast as “the current tariff paradigm has brought uncertainty into the retail environment,” Calvin McDonald, Lululemon’s chief executive, told investors on a call.
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Mattel: The maker of Barbie and other toys said last month that it would increase prices in response to tariffs on imports from China. Mattel also scrapped its financial forecast for the year.
Kailyn Rhone is a Times business reporter and the 2025 David Carr fellow.
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