Apple joined a slew of American companies on Wednesday when CEO Tim Cook warned that quarterly revenue for the critical holiday sales season would be lower than originally anticipated, blaming the bad news on a nearly year-long trade war between the U.S. and China that’s shaken both countries’ economies.
The news rattled the markets and saw Apple shares tumble more than 9 percent Thursday.
“Lower-than-anticipated iPhone revenue, primarily in Greater China, accounts for all of our revenue shortfall to our guidance and for much more than our entire year-over-year revenue decline,” Cook said in a letter to investors.
The iPhone maker isn’t the only big U.S. company, however, to take a beating and blame it on trade tensions. Here’s a look at other businesses – and industries – that say that the trade war, which first began in February and has since culminated in billions of dollars in tariffs, is hurting their sales.
Ford: In September, the CEO of the American automaker told Bloomberg that U.S. tariffs on steel and aluminum cost the company about $1 billion in profits. Over the course of the year, Ford experienced a massive slump in sales in China, with the automaker recording its worst-ever first half in 2018, according to Reuters.
General Motors: The Detroit-based automaker in November announced mass layoffs in its North American workforce and the closure of several plants. When talking to reporters, CEO Mary Barra suggested that tariffs Trump imposed on imported aluminum and steel have hurt the company. That same month, GM also said tariffs have cost the company about $1 billion in profits.
Caterpillar: In July, the machinery-design corporation said tariffs would ultimately cost it $200 million, forcing the Illinois-based company to raise prices.
Coca-Cola: The soft drink maker raised prices for sodas and other beverages to help offset higher costs for freight shipments and metals used in its bottling systems, according to Bloomberg.
MillerCoors: The brewer said in June that profits could fall by at least $40 million because of a 10 percent tariff on aluminum, which is used for the beer cans.
FedEx: In December, FedEx slashed its earnings guidance, warning that a slowdown in global trade was impeding its international business. During the earnings call, CEO Fred Smith said a U.S.-China trade war had created economic weakness in Beijing, thus hurting the company’s operations there.
|FORD MOTOR CO.
|GENERAL MOTORS CO.
|THE COCA-COLA CO.