CEOs Grapple with Growing Uncertainty Amid Shifting Tariff Policies

American corporations are navigating a landscape filled with uncertainty, and investors are facing similar challenges.

Executives from Ford and General Motors acknowledge their inability to predict what lies ahead, citing too many unknown factors. Both automakers have halted issuing earnings guidance—forecasts on sales and profits—leaving investors to make decisions without clear direction. This sentiment extends beyond the auto industry; companies such as Delta Air Lines, Southwest Airlines, Skechers, UPS, and Cummins also express difficulty in confidently projecting future performance.

The current earnings season on Wall Street is unlike previous quarters. While companies continue to report recent financial results, these figures are quickly becoming outdated. The ongoing, unpredictable imposition of tariffs—the most significant in a century—has dramatically altered the outlook for the global economy and individual businesses, making meaningful projections increasingly challenging, especially for those directly impacted.

Ford's Chief Financial Officer, Sherry House, recently stated, "Given material tariff-related near-term risks and the potential range of outcomes, we are suspending guidance for the full year 2025."

She outlined several uncertainties facing Ford, including widespread supply chain disruptions affecting production, the possibility of new or increased U.S. tariffs, changes in tariff implementation such as offsets, retaliatory tariffs and restrictions imposed by other governments, and policy uncertainties related to tax and emissions regulations. This comprehensive list highlights the complex challenges companies currently face.

The term "uncertainty" has become a dominant theme among corporate leaders. It was mentioned in 87 percent of earnings calls this season, a substantial increase from 38 percent in the previous quarter, according to earnings analyst John Butters. Additionally, "tariffs" appeared in 93 percent of these discussions, while "recession" was referenced in 30 percent, compared to just 3 percent in the prior quarter.