US Corporate Profits Fell by Most Since 2020 Ahead of Tariffs

US corporate profits fell in the first quarter by the most since 2020, indicating large companies were already feeling some pressure prior to the Trump administration’s sweeping tariffs on global trading partners.

The 2.9% decrease in profits followed a 5.4% advance in the fourth quarter, according to Bureau of Economic Analysis data out Thursday. Despite the drop, profits remained well above historical norms relative to gross domestic product, which fell 0.2%.

The extent to which American companies choose to raise consumer prices in response to tariffs on imported goods has become a key question for the US economic ...