(Reuters) -U.S. industrial conglomerate 3M Co cut its forecast for 2025 profit on Tuesday as tariff tensions mount, sending its shares down 2.5% in premarket trading.
Global trade tensions have heightened since China imposed a 125% tariff on U.S. imports, retaliating against President Donald Trump’s decision to raise tariffs for Chinese imports to 145%. In March, 3M said China accounted for roughly 10% of its global revenue.
U.S. President Trump’s tariffs have fueled concerns about an economic slowdown and a decline in consumer sentiment, which could impact sales for the company’s consumer products, including its iconic Scotch tape and Post-it notes.
Consumers’ 12-month inflation expectations surged to 6.7% in April, the highest level since 1981.
The St. Paul, Minnesota-based company now expects a tariff-related negative impact of $0.20 to $0.40 per share on its full-year adjusted profit forecast of $7.60 to $7.90.
It posted a first quarter adjusted profit of $1.88 per share higher than analysts’ average expectations of $1.77 per share, according to data compiled by LSEG.
The company’s adjusted net sales for the first quarter came in at $5.78 billion, compared with Wall Street expectations of $5.75 billion.
(Reporting by Aishwarya Jain in Bengaluru; Editing by Maju Samuel)
