Foxconn Lowers 2025 Outlook Amid US Tariff Uncertainty

Foxconn, a major supplier for Apple and Nvidia, has lowered its full-year revenue growth outlook for 2025 due to uncertainties surrounding U.S. tariffs and currency fluctuations, despite reporting strong first-quarter profits driven by booming demand for AI servers. Chairman Young Liu emphasized the impact of rapid changes in U.S. tariff policies and exchange rate volatility on the global supply chain, prompting a more cautious forecast than earlier projections. While Foxconn's first-quarter net profit surged 91% year-over-year, the company adjusted its outlook from 'strong growth' to 'significant growth' to reflect these challenges. This adjustment aligns with similar tariff-related concerns raised by other companies, including Toyota, Steve Madden, Rivian, AMD, Ferrari, and Mattel, who have also revised their financial forecasts or withdrawn guidance amid trade policy uncertainties. Although recent temporary tariff reductions between Washington and Beijing offer some relief, a permanent trade agreement remains elusive, maintaining pressure on global supply chains. Foxconn continues to ramp up AI server production and has expanded manufacturing facilities in Mexico, but the overall outlook remains tempered by geopolitical and economic risks.