Intel, Skechers, and Procter & Gamble Revise 2025 Forecasts Amid U.S. Tariff-Induced Economic Slowdown

Intel, Skechers, and Procter & Gamble have revised or withdrawn their 2025 financial forecasts due to escalating trade tensions and tariffs under President Trump's policies. Intel lowered its revenue guidance, citing increased costs and economic slowdown risks. Skechers withdrew its full-year guidance, affected by tariffs on Asian imports. P&G plans to raise prices to offset rising input costs. These actions reflect broader industry concerns about investment and operational costs amid trade uncertainty. The IMF projects U.S. economic growth at 1.8% for 2025, down from 2.7%, with a 40% recession risk.

Intel: Trade Policy Volatility Hits Semiconductor Outlook

Intel Corp., a bellwether for the technology sector, has revised its second-quarter 2025 revenue guidance downward, projecting between $11.2 billion and $12.4 billion, compared to $12.7 billion in the first quarter. The company’s CFO, David Zinsner, attributed the cautious outlook to “very fluid trade policies” and the increased risk of an economic slowdown. “The biggest risk we see is the impact of a potential pullback in investment and spending as businesses and consumers react to higher costs and the uncertain economic backdrop,” Zinsner said during the company’s earnings call.

Despite a globally diversified manufacturing footprint, Intel acknowledged that tariffs are driving up costs and shrinking the total available market for its products. Zinsner noted that while customer buying patterns have not yet shifted significantly, the company is managing operations with “a level of conservatism” heading into the second half of the year. CEO Lip-Bu Tan emphasized that Intel is focused on cost-cutting and reinvestment in engineering talent, but acknowledged that the time required to reconfigure global supply chains in response to shifting trade rules remains a challenge.

Intel’s shares fell more than 5% in after-hours trading following the earnings release, underscoring investor concern over the company’s ability to navigate the current macroeconomic environment.

Skechers: Record Sales, But Forecast Withdrawn

Skechers USA Inc. reported record first-quarter sales of $2.41 billion, a 7.1% increase year-over-year. However, the company withdrew its full-year 2025 guidance, which had previously projected sales between $9.70 billion and $9.80 billion and earnings per share between $4.30 and $4.50. The decision was driven by “macroeconomic uncertainty stemming from global trade policies,” according to the company’s statement.

“The current environment is simply too dynamic from which to plan results with a reasonable assurance of success,” said David Weinberg, Skechers’ Chief Operating Officer, during a post-earnings call. CFO John Vandemore echoed this sentiment, emphasizing the company’s confidence in its brand resilience but acknowledging the challenges posed by the global trade landscape.

Skechers, which relies heavily on manufacturing in Asia—particularly China—has been directly affected by tariffs on imported goods. While wholesale and direct-to-consumer sales grew in the Americas and EMEA regions, the Asia-Pacific market saw declines, reflecting the uneven impact of trade disruptions. Despite strong top-line performance, net earnings dipped slightly to $202.4 million, and shares fell over 6% in after-market trading.

Procter & Gamble: Pricing Adjustments and Slower Growth

Consumer goods conglomerate Procter & Gamble is also adjusting its expectations in light of rising input costs linked to tariffs. The maker of household staples such as Gillette, Head & Shoulders, and Ariel has indicated that it may raise prices to offset the increased cost of materials sourced from China and other regions affected by U.S. trade policy.

“We’ll be looking for every opportunity to mitigate the impact,” said P&G CFO Andre Schulten, noting that the company is considering “some level of consumer pricing” adjustments. CEO Jon Moeller added that uncertainty is expected to persist, and the company now anticipates slower sales growth than previously forecast.

P&G’s caution reflects broader concerns in the consumer goods sector, where price sensitivity and supply chain complexity make it difficult to absorb cost increases without affecting demand. The company has not disclosed the full extent of the expected impact but has joined a growing list of firms warning of deteriorating economic conditions.

Broader Corporate and Economic Context

The warnings from Intel, Skechers, and P&G are part of a larger trend among U.S. companies grappling with the fallout from President Trump’s tariff regime. Other firms, including American Airlines and PepsiCo, have also pulled or revised their earnings guidance due to trade-related uncertainty. According to the International Monetary Fund (IMF), the U.S. economy is now projected to grow just 1.8% in 2025, down from a previous forecast of 2.7%. The IMF has raised the probability of a U.S. recession this year to 40%.

Pierre-Olivier Gourinchas, the IMF’s chief economist, warned that the global economic system is undergoing a fundamental reset. “Companies facing uncertain market access will likely pause in the near term, reduce investment and cut spending,” he wrote. The IMF also noted that average U.S. import duties have risen to about 25%, the highest in a century, further straining global supply chains.

Despite some signs of progress in trade talks with South Korea, no new trade agreements have been finalized. A 90-day pause on higher tariffs affecting dozens of countries is set to expire on July 8, adding to the uncertainty facing multinational firms.

Regulatory and Strategic Implications

The current trade environment is forcing companies to rethink their global strategies. Intel is evaluating how to reconfigure its supply chain to adapt to new trade realities, while Skechers and P&G are exploring pricing and sourcing adjustments. These strategic shifts underscore the operational complexity introduced by unpredictable regulatory changes.

For investors and analysts, the withdrawal of guidance by multiple firms signals a lack of visibility that complicates valuation and forecasting. As guidance is not a required disclosure, companies are increasingly opting to withhold it rather than risk issuing projections that may quickly become obsolete.

References

• Intel: ‘Fluid Trade Policies’ Have Increased Risk Of ‘Economic Slowdown’
• Intel Reports First-Quarter 2025 Financial Results
• Skechers Reports Record Q1 Sales But Withdrawals 2025 Guidance Due to ‘Macroeconomic Uncertainty’
• Company executives warn over impact of tariffs
• Company bosses warn over tariffs impact
• US and global economic outlook deteriorates in Trump trade war, IMF says | The Associated Press