Disclosures Reveal Companies’ Early Reactions to U.S. Tariff Policy

The financial markets have had about a month to digest the impact of the federal government’s new tariffs on the outlook for the global economy. Meanwhile, individual companies have been sorting out what the new tariffs on goods imported from other countries will mean for their own businesses. We’re now beginning to get insights into their thinking through public disclosures.

Here’s a look at what some companies are saying about the reverberations of the new U.S. trade policy.

Stanley Black & Decker

In a quarterly report filed on April 30, power tool manufacturer Stanley Black & Decker noted it implemented a price increase on its products last month. The company also plans to raise its prices again in the third quarter of the year and said it will be “accelerating strategic adjustments” to its supply chain. The goal: “leveraging Mexico and reducing China tariff costs” over the next 12 to 24 months. In a related earnings call on April 30, Stanley Black & Decker President and CEO Donald Allan, Jr. said the company recently reduced its manufacturing footprint in China substantially, which positioned it to better address the current “dynamic trade environment” and mitigate its effects.

Allan admitted Stanley Black & Decker was caught off-guard by the “magnitude and frequency” of the tariff changes. According to the filing, the manufacturer will continue “proactively engaging” with the current administration.

Amazon

Amazon President and CEO Andy Jassy in a May 1 earnings call touched on the key point of contention underlying trade policy: imports from China. Retailers that are not buying products directly from China typically buy them from companies that are sourcing their goods from China, according to Jassy. “These retailers are buying the product at a higher price than Chinese sellers selling directly to U.S. consumers in our marketplace,” he said. “So, the total tariff will be higher for these retailers than for China-direct sellers.”

Regarding the prospect of additional tariffs, no one knows “exactly where tariffs will settle or when,” Jassy said. For its part, Amazon has not “seen any attenuation of demand yet,” according to Jassy. Additionally, Jassy said Amazon had observed “heightened buying” in certain categories of goods. In other words, the company is seeing signs of consumers “stocking up” in advance to mitigate the impact of the tariffs on their pocketbooks.

Moreover, the average selling price of retail items has yet to increase “appreciably,” according to Jassy. He noted that might be attributable to strategic decisions by buyers and sellers in the Amazon marketplace. However, it seems likely that “most sellers just haven’t changed pricing yet” in response to the taxes on imports, he said.

Looking at the bigger picture, Jassy stressed that Amazon is not “uniquely susceptible” to tariffs. Instead, he pointed out that “substantial, unexpected product trends emerge” during periods of discontinuity, suggesting customers tend to choose the provider they trust most in uncertain environments.

Columbia Sportswear

In a May 1 earnings call, Columbia Sportswear Chairman, President and CEO Tim Boyle said history has shown that tariffs are designed to raise the price of imported goods. He addressed the economic uncertainty associated with the evolving U.S. tariff policy and the difficulties U.S. companies are facing in planning for the future.

Boyle outlined a concerning scenario for the apparel sector in the U.S. with the new tariffs in place. More than 90% of all apparel and footwear sold in the U.S. is imported and already heavily taxed under legacy trade laws. Therefore, the additional tariffs proposed by the current administration have the potential to “significantly raise prices to U.S. consumers,” he said.

In terms of adapting to the new landscape, Columbia is taking steps to mitigate its exposure to increased costs of the tariffs. These include shifting existing inventory to U.S. warehouses. For its stock of goods manufactured in China, Columbia is redirecting those products to other international markets. It is also “rationalizing” its inventory purchases and reducing its discretionary spending.

Ford Motor Company

In its May 5 earnings release, Ford took a measured yet proactive stance, signaling plans to adjust its product strategy considering the current tariff environment. The company emphasized ongoing efforts to localize supply chains and increase sourcing from North American partners. Ford noted that it continues to monitor the evolving trade landscape and is actively evaluating contingency measures to mitigate the potential impact of future tariffs.

The automaker also pointed to strength in its truck and commercial vehicle segments, which may provide some insulation from consumer price sensitivity in the event of rising input costs. While it stopped short of revising its full-year outlook due to tariff uncertainty, Ford stressed its commitment to maintaining competitiveness through flexible sourcing, disciplined cost control, and product mix optimization.

Mattel

Toymaker Mattel used its May 5 earnings report to announce it is pausing full-year 2025 guidance entirely, citing the volatile macro-economic environment and evolving U.S. tariff situation. While tariffs had not yet affected its Q1 financial results, CFO Anthony DiSilvestro noted that the company is taking proactive steps to fully offset any future cost impact.

Mattel’s mitigation plan includes accelerating supply chain diversification, reducing dependence on China, optimizing sourcing and product mix, and, where necessary, taking pricing actions in the U.S. market. The company also raised its 2025 cost savings target from $60 million to $80 million under its Optimizing for Profitable Growth initiative. Notably, despite the uncertainty, Mattel reaffirmed a $600 million share repurchase plan, indicating confidence in its long-term financial position.

RTX Corporation

In a recent earnings call, executives from aerospace and defense giant RTX Corp highlighted the industry’s historical advantage of operating largely tariff-free. CEO Greg Hayes noted that the company benefits from a predominantly U.S.-based industrial base – with about 70% of its workforce and 65% of supplier spending located domestically. RTX has invested nearly $10 billion in domestic manufacturing over the last five years and plans another $2 billion in 2025.

Still, the company acknowledged that tariffs could pose risks due to the global nature of its supply chain. While RTX has not yet factored potential tariff costs into its 2025 guidance, it offered a preliminary estimate of direct exposure, excluding broader effects like shifts in customer demand or operational disruption. Hayes emphasized that the situation remains fluid and subject to several external factors, including countermeasures by other countries and changes in tariff policy scope or duration.

That’s a small sample of what companies are saying publicly. Absent any immediate changes in policy, expect to hear more soon about how recent U.S. trade policy is currently affecting businesses across the country.