Companies are rolling out plans to cancel contracts and/or halt shipments in the U.S. in response to President Donald Trump's tariff scheme. Boeing and Airbus supplier Howmet Aerospace issued one such warning, as did the parent firm of Jaguar and Land Rover.
Howmet Aerospace declared a force majeure event, Reuters reported late Friday, in a letter sent to customers. Force majeure is a legal practice that allows enabling contracted parties to avoid obligations due to unavoidable or unpredictable external circumstances.
"Howmet will be excused from supplying any products or services that are impacted by this declared national emergency and/or the tariff executive order," the company wrote in its letter.
Howmet is the first reported instance of a U.S.-based company declaring force majeure due to Trump's tariffs. Elsewhere, India-based Tata Motors, the parent of Jaguar Land Rover (JLR) announced on Saturday it has paused exports to the U.S. in response to tariffs, Reuters reported.
"As we work to address the new trading terms with our business partners, we are taking some short-term actions, including a shipment pause in April, as we develop our mid- to longer-term plans," JLR wrote in an emailed statement.
GameStop on Friday confirmed that Nintendo has delayed U.S. preorders for its upcoming Nintendo Switch 2 console. Nintendo said that preorders for the U.S. will not start on April 9 "in order to access the potential impact of tariffs and evolving market conditions," according to the GameStop statement. Japan-based Nintendo plans to update the timing for the U.S. preorders at a later date.
The official June 5 launch date for the console remains unchanged.
The Wall Street Journal on Friday reported that StubHub and Klarna postponed their IPO road shows that were scheduled for this week. News reports on Monday said Israel-based trading platform eToro had also paused its plans to list on the U.S. market.
Stock Action
Howmet Aerospace stock reversed for a 3% gain Monday after retreating in early trade. HWM shares are down about 15% in April following Trump's tariff announcement.
Boeing rose 1.7% while Airbus shares fell 6%.
GameStop stock climbed 3.4% Monday, adding to its 11.3% gain from Friday.
You can follow Harrison Miller for more stock news and updates on X/Twitter @IBD_Harrison
