Investors hoping for a flurry of trade deals before the Aug. 1 deadline may be underwhelmed at the minute. Talks with China ended in Stockholm yesterday, while a deal with India has yet to be announced.Meanwhile, a clutch of well-known German companies have put figures on how much taxes on imports to the U.S. are costing them.
Share of Adidas, the sporting goods company, tumbled even though it maintained its sales guidance. The maker of Samba soccer shoes said the tariffs will increase the cost of its products in the U.S. by as much as €200 million ($230 million) for the rest of the year.
Luxury car maker Porsche, the subsidiary of Volkswagen that’s famous for its 911 model, had an even starker warning. It said it took a hit of around $460 million from tariffs in the first half of the year because it didn’t pass on the higher costs to customers. After the European Union trade deal cut tariffs to 15% from now, Porsche lowered its guidance for the year.
Mercedes-Benz also warned that revenue will be significantly lower this year because of tariffs. The auto maker had previously dropped guidance altogether because of uncertainty about how high the levies might end up.
As negotiations between China the U.S. ended Tuesday. Treasury Secretary Scott Bessent said that “nothing is agreed until we speak with President Trump.” Trump and Chinese leader Xi Jinping may meet in person over the next few weeks.
There could also be a deal soon with India. Trump said yesterday that the rate for the south Asian country could be 25%, a bit lower than what was announced on April 2.
