Watch for tariff writedowns in Q2 earnings. Companies that have announced such chargeoffs from the their assessments of their businesses include Nvidia*/NVDA , Volvo/GELYY, Stellantis/STLA, etc.
Businesses are allowed to recover their investments in new products over time through depreciation and amortizations that are considered aspects of accounting (banks can also setup loan-loss reserves for potential delinquencies of loans). While the cashflows aren't affected by writedowns, the reported earnings are affected (one-time).
Companies have to make their decisions even with lot of uncertainties. And just as writedowns are allowed, they can be reversed if they turnout to be excessive (boosting earnings one-time, but not affecting the cash flows). But as the example of NVDA shows, that reversal may not happen right away.
So, besides tariff's affects if passed through to consumers, this is another less-known impact of tariffs. Look for more of it in Q2 earnings reports.
*Mainly from its special H20 chip for China that were allowed, then not allowed, and now allowed again - but most of its writedowns stand (i.e. not reversed).
