Major global corporations across the auto, finance, and pharmaceutical industries are reeling from the growing economic uncertainty triggered by U.S. President Donald Trump’s aggressive new tariffs. Automakers such as Stellantis, Aston Martin, Mercedes-Benz, and Volkswagen, alongside global banks UBS and Santander, have reported weakened profits and warned of murky outlooks amid escalating trade tensions.
Stellantis Suspends Outlook Amid North American Slump
U.S.-European car giant Stellantis—owner of Jeep, Peugeot, Fiat, and Ram—announced Wednesday it is suspending its 2025 financial guidance, citing the “difficulty predicting possible impacts” of Trump’s evolving tariff regime. The automaker posted a 14% drop in Q1 revenue to €35.8 billion ($40.7 billion), driven by a 20% fall in North American shipments and prolonged factory shutdowns.
Despite signs of a turnaround, CFO Doug Ostermann remained cautious: “While first quarter 2025 top-line results were below prior-year levels, other key performance indicators reflect early, initial progress on our commercial recovery efforts.” The company noted a pre-tariff jump in U.S. orders and improving sales in Europe.
Board chairman John Elkann added, “While we further assess the impact of the tariff policies on our North American operations, we look forward to our continued collaboration with the US administration to strengthen a competitive American auto industry and stimulate exports.”
Aston Martin Limits U.S. Shipments
Across the Channel, British luxury carmaker Aston Martin announced it is restricting exports to the U.S. in response to the 25% import tariffs. “We are carefully monitoring the evolving US tariff situation and are currently limiting imports to the US,” CEO Adrian Hallmark said.
The company reported a 13% revenue dip in Q1 but held its full-year guidance, projecting a rebound from 2024’s £323.5 million loss. Financial pressures have already prompted workforce cuts and plans to offload its stake in the Aston Martin Aramco Formula One team.
Mercedes-Benz and Volkswagen Echo Caution
German auto titans Mercedes-Benz and Volkswagen also warned of a turbulent year ahead. Mercedes posted a 43% plunge in Q1 net profit to €1.73 billion ($1.93 billion), citing weak Chinese demand and U.S. market uncertainty. “Volatility with regard to tariff policies” forced the firm to drop its 2025 outlook.
Finance chief Harald Wilhelm insisted the company is “in a strong position” due to its premium vehicle segment and a robust balance sheet.
Volkswagen’s Q1 net profit fell 41% to €2.19 billion ($2.49 billion), with €1.1 billion in one-off costs, including EU emissions fines and software restructuring. CFO Arno Antlitz admitted it was “too early to say” whether the company would expand U.S. production to avoid tariffs, noting that most U.S.-sold Volkswagens are imported despite a plant in Tennessee.
GSK, UBS, Santander Respond to Economic Volatility
British pharmaceutical giant GlaxoSmithKline, facing a U.S. investigation into potential drug tariffs, said it is “well positioned” with mitigation strategies in place. GSK posted a 50% jump in Q1 profit to £1.62 billion ($2.17 billion), driven by strong sales in its Specialty Medicines portfolio.
Swiss banking giant UBS posted $1.7 billion in Q1 profit, exceeding expectations but still down 4% year-on-year. It warned of “particularly unpredictable” economic conditions due to tariff shocks. “The prospect of higher tariffs on global trade presents a material risk to global growth and inflation,” the bank noted.
Spain’s Santander, however, posted record Q1 profits of €3.4 billion ($3.9 billion), up 19% year-on-year. Executive Chair Ana Botin emphasized strong global business performance but acknowledged looming uncertainties: “We’ve had a strong start to 2025.”
China’s Factories Falter Under Trade War Pressure
Meanwhile, in China, official data confirmed the first signs of strain from intensifying U.S.-China tariffs. Factory activity shrank in April, with the Purchasing Managers’ Index dropping to 49—below the 50-point threshold marking contraction. The drop follows U.S. tariffs as high as 145% and retaliatory Chinese levies up to 125%.
“The weak manufacturing PMI in April is driven by the trade war,” noted Zhiwei Zhang of Pinpoint Asset Management. China’s economy remains under pressure from weak domestic demand and a persistent property slump, with economists forecasting just 3.5% growth this year.
Global Outlook: Caution Amid Conflict
As the trade war escalates, global businesses face rising costs, unpredictable regulatory shifts, and strategic uncertainty. Whether through suspended forecasts, scaled-back exports, or deferred investments, companies are bracing for a volatile year—and calling for clarity.
“We are highly engaged with policymakers on tariff policies,” Stellantis said, echoing an industry-wide sentiment. For now, projections remain hazy and boardrooms tense, as economic policy becomes a new battleground in global trade.
