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THE IMPACT OF TARIFFS
While politicians in America and across the world argue about the impact of the Trump administration’ s recent imposition of tariffs, we could report on a wide range of indicators signaling negative economic impact. But it’ s changing too fast. From reduced shipping activity at U. S. ports beginning in late April, to price increases and surcharges added by some manufacturers, the economic weight of these taxes is real.
It’ s also changing rapidly, making the business of reporting and assessments more difficult. Below, we present reports from recent financial statements made by several publicly traded companies in power equipment and landscape industries.“ Tariffs are nothing else but taxes and that at the end of the day consumers will pay them,” said Michael Traub, chairman and CEO of Stihl.
MANUFACTURERS, POWER EQUIPMENT Generac As a result of higher tariff levels, uncertain government policy actions, and a potentially softer global macroeconomic environment, the range of forecasted outcomes for Generac’ s business has expanded relative to our prior guidance. Due to these factors, the company is widening its guidance ranges for key financial metrics for the full year 2025. This updated outlook assumes that current tariff levels remain in place for the remainder of the year.
Generac now expects full-year 2025 net sales growth to be between 0 to 7 % compared to the prior year, which includes an approximate 1 % favorable impact from foreign currency and acquisitions. This compares to our previous guidance range of 3 to 7 % net sales growth compared to the prior year as price increases have the potential to be more than offset by lower shipment volumes.
Stanley, Black & Decker, parent of Dewalt, Cub Cadet and Hustler among other brands, has initiated one pricing increase and is planning a second. As early as last fall, CEO Donald Allan spoke about reducing“ our China exposure” by increasing manufacturing in other Asian countries or Mexico.
Husqvarna“ We know there’ s a lot of uncertainty around tariffs; it’ s a highly uncertain world at the moment and we are continuously working to assess and improve our position within this difficult environment,” said Husqvarna CFO Terry Burke.“ As it stands at the moment, we do believe there will be an influence on consumer demand; I think that’ s inevitable. Also with the tariffs, there will be a direct impact to our financial results. To put it into some kind of context, approximately 2 / 3 of our sales in the U. S. come from imported product and that can be from China, Europe and Brazil. There is clearly impact from tariffs. Those product segments include professional handheld for Construction and also for Forest & Garden division. We are implementing a number of price
6 OPE + May 2025 www. OPE-Plus. com