Impact of Tariffs on Orange County Companies

News Summary

Publicly traded companies in Orange County are facing significant challenges due to President Trump’s tariffs. Rivian Automotive Inc. has revised its EV delivery forecast downward despite a revenue increase. Masimo Corp. reported a substantial loss linked to tariffs and operational disruptions. Meanwhile, Skyworks Solutions maintains a positive outlook despite a revenue decline, while Chipotle faces its first drop in same-store sales since 2020. Experts warn of broader implications for Southern California’s trading ecosystem as foreign investments and employment may be jeopardized.

Santa Ana, CA – Several publicly traded companies in Orange County are grappling with the fallout from President Trump’s tariffs, which have considerably impacted their financial forecasts and operational strategies.

Rivian Automotive Inc. has announced a reduced annual delivery forecast for its electric vehicles. The company now expects to deliver between 40,000 to 46,000 EVs for 2025, a decrease from its previous estimate of 46,000 to 51,000. Despite a 3% revenue increase to $1.24 billion in the first quarter, the company stressed that it is “not immune” to the current global trade environment. Rivian did report a gross profit of $206 million for the first quarter, a considerable turnaround from a gross loss of $527 million during the same period last year. However, the announcement led to a 5.8% decline in Rivian’s stock price to $12.72, although the shares remain up 7% for the year.

Masimo Corp. reported a significant loss of $650 million largely attributed to failed consumer device expansion efforts and the effects of tariffs. The company plans to divest its Sound United consumer audio business for $350 million, a decision taken after the ousting of its founder, Joe Kiani. In addition, Masimo updated its guidance to reflect a projected increase in cost of sales by $33 to $37 million for fiscal 2025 due to tariffs. A recent cyberattack on its operations further complicated its challenges, leading to manufacturing disruptions and a 7% drop in its stock price to $150.11, which now reflects a 9.2% decrease year-to-date.

Skyworks Solutions Inc. saw an 8.9% decline in revenue but remains optimistic, offering a bullish outlook for its upcoming Q3 earnings. The Irvine-based company projects Q3 revenue between $920 million to $960 million, with adjusted earnings per share set at $1.24. The company also announced the appointment of Mark Dentinger as the new CFO, which could signal a strategic shift in financial oversight.

Chipotle Mexican Grill is facing its first decline in same-store sales since 2020 and has responded by hiring Jason Kidd, the former COO of Taco Bell, to oversee operations. Following the announcement, Chipotle’s stock price rose by 2.5% to $51.64, although shares have decreased approximately 14% year-to-date.

Viant Technology Inc. posted a 32% revenue increase to $70.6 million, surpassing forecasts. However, the company cautioned about slowing advertising spending from some clients as an effect of the current economic climate. In contrast, Ducommun Inc. reported stronger than expected earnings, with an increase in revenue by 2%, asserting that tariffs would not significantly impact its financial outlook.

Experts from the Los Angeles Economic Development Corporation (LAEDC) are warning that Trump’s tariffs could deeply affect Southern California’s $300 billion trade and logistics industry, potentially jeopardizing the economic stability of the region. The trade relationship with China, which saw approximately $130 billion in imports through the Port of Los Angeles in 2024, is at significant risk as tariffs escalate. A consequent decrease in cargo volume at the ports is anticipated, leading to reduced activity across local supply chains.

This uncertainty in trade dynamics may also threaten foreign investment in Southern California, with potential repercussions for employment and wage generation. All of these developments underline the intricate link between federal trade policy and local economic health in Orange County.

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Additional Resources

• Orange County Business Journal
• NBC Los Angeles
• Orange County Register
• ABC7
• Los Angeles Times
• Wikipedia: Tariff
• Google Search: Trump tariffs
• Google Scholar: tariffs economic impact
• Encyclopedia Britannica: Tariff
• Google News: tariffs impact on business