2 weeks Ago
3M is bracing for damage from the global trade war. The Maplewood-based manufacturer expects tariffs to reduce this year’s profits by up to 5%, between 20 cents and 40 cents per share. With President Donald Trump’s 10% import tax on all countries and a hefty 145% tariff on Chinese goods, few companies will go unscathed.
China has also retaliated with a 125% tax on U.S. imports.
The higher cost to make goods will eat into profit margins. When companies pass on those costs as higher prices for customers, demand could also fall and further erode earnings. Investors have responded by selling off American stocks, tanking valuations across the market.
Since the beginning of April, 3M stock has fallen nearly 15%, though it was up 4% in pre-market trading Tuesday. 3M, at least, had a head-start on tariff troubles with a 20% boost to profits to start 2025. The first quarter’s haul was $1.
1 billion. Sales fell 1%, to $6 billion, through the first three months of the year. “In this dynamic environment, we remain focused on improving the fundamentals in the business, building a new performance culture and advancing our strategic priorities while leveraging our extensive global network and significant U.
S. footprint,” CEO Bill Brown said in a statement. Company leaders will address analysts at 8 a.
m. This story will be updated..
