Trump Tariff Uncertainty Hits U.S. Giants As McDonald’s Sales Slide, General Motors Slashes Profit Forecast

<p>McDonald&rsquo;s and General Motors have warned that the uncertainty around the tariff policy by the Donald Trump administration is hurting business, hitting sales and knocking profits. According to The Guardian, the fast food chain reported a fall of 3.6 percent in sales in its US home market during the first quarter, driven mainly by the lower customer numbers as consumers reined in their spending in the face of an unpredictable economic outlook.</p>
<p>According to the report, the fall is the largest quarterly fall in sales since the Covid lockdown of 2020 and comes as US measures of consumer confidence plummeted in March and April.</p>
<p>McDonald&rsquo;s chief executive, Chris Kempczinski, said the company was navigating the &ldquo;toughest of market conditions&rdquo; as it also reported a 1% fall in global sales in the first three months of the year.</p>
<p>&ldquo;Consumers today are grappling with uncertainty,&rdquo; Kempczinski added.</p>
<p>The consumer has been trying to boost consumer spending on its Big Macs and chicken McNuggets through the launch of a new &ldquo;value&rdquo; menu.&nbsp;</p>
<p>Meanwhile, Mary Barra, GM&rsquo;s chief executive, said in a letter to shareholders that the company now expected to make a pre-tax profit of between $10bn and $12bn this year, including a tariff exposure of between $4bn and $5bn. It compares with the previous profit guidance of $13.7bn to $15.7bn.</p>
<p>According to The Guardian, the letter by Barra also stated that the company was grateful to President Donald Trump for his support of the US automotive industry.</p>
<p>The carmakers have been struggling to keep up with President Trump&rsquo;s constant changes to his plan for sweeping levies, which have also forced Stellantis &ndash; the owner of brands including Jeep, Chrysler and Fiat &ndash; and German manufacturer Mercedes to withdraw their financial guidance for the year as a result of the uncertainty around the tariff policy.</p>