Intel Chief Financial Officer (CFO) David Zinsner has expressed concerns that President Donald Trump's tariffs and retaliatory measures from other nations have significantly increased the likelihood of an economic recession.
“The very fluid trade policies in the US and beyond, as well as regulatory risks, have increased the chance of an economic slowdown, with the probability of a recession growing,” Zinsner said during the company's quarterly earnings call on Thursday (April 24).
He further elaborated on the potential economic impact, saying, “The biggest risk we see is the impact of a potential pullback in investment and spending, as businesses and consumers react to higher costs and the uncertain economic backdrop.”
While Intel's geographically diverse production facilities mitigate some of the direct effects of the tariffs, Zinsner acknowledged that the company “will certainly see costs increase.”
Earlier this month, JP Morgan projected that the US will slip into a recession by the end of 2025, followed by Trump's reciprocal tariffs. CEO Jamie Dimon also warned that sweeping tariffs may unleash financial instability.
“I think probably a recession is a likely outcome,” said Dimon, adding that recent steep market declines are deepening fears.
“When you see a 2,000-point decline in the Dow, it sort of feeds on itself... it makes you feel like you're losing money in your 401(k), you're losing money in your pension. You've got to cut back,” he noted.
CEO of Intel Products says people may buy laptops with older chips
Meanwhile, Michelle Johnston Holthaus, CEO of Intel Products, suggested that rising costs could lead consumers to favour laptops and computers utilising older, less expensive chip generations.
“The macroeconomic concerns and tariffs have everybody kind of hedging their bets in what they need to have from an inventory perspective,” Holthaus said during the earnings call.
In addition to tariff-related challenges, Intel is navigating US government efforts to impose licensing requirements on the shipment of advanced artificial intelligence chips to countries like China.
“The very fluid trade policies in the US and beyond, as well as regulatory risks, have increased the chance of an economic slowdown, with the probability of a recession growing,” Zinsner said during the company's quarterly earnings call on Thursday (April 24).
He further elaborated on the potential economic impact, saying, “The biggest risk we see is the impact of a potential pullback in investment and spending, as businesses and consumers react to higher costs and the uncertain economic backdrop.”
While Intel's geographically diverse production facilities mitigate some of the direct effects of the tariffs, Zinsner acknowledged that the company “will certainly see costs increase.”
Earlier this month, JP Morgan projected that the US will slip into a recession by the end of 2025, followed by Trump's reciprocal tariffs. CEO Jamie Dimon also warned that sweeping tariffs may unleash financial instability.
“I think probably a recession is a likely outcome,” said Dimon, adding that recent steep market declines are deepening fears.
“When you see a 2,000-point decline in the Dow, it sort of feeds on itself... it makes you feel like you're losing money in your 401(k), you're losing money in your pension. You've got to cut back,” he noted.
CEO of Intel Products says people may buy laptops with older chips
Meanwhile, Michelle Johnston Holthaus, CEO of Intel Products, suggested that rising costs could lead consumers to favour laptops and computers utilising older, less expensive chip generations.
“The macroeconomic concerns and tariffs have everybody kind of hedging their bets in what they need to have from an inventory perspective,” Holthaus said during the earnings call.
In addition to tariff-related challenges, Intel is navigating US government efforts to impose licensing requirements on the shipment of advanced artificial intelligence chips to countries like China.
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