Little by little, American businesses and consumers are feeling the impacts of the tariffs imposed by U.S. President Donald Trump. The effects of these tariffs are becoming increasingly apparent, with examples ranging from major automakers like the Detroit Three facing billions in extra costs to small businesses like a stainless steel cookware manufacturer in Tennessee hit with a $75,000 US tariff bill on a single shipment. Even coffee shops are contemplating raising prices due to tariffs on Brazilian imports.
While companies have previously shielded consumers from the full brunt of the tariffs, recent developments, including impending tariff increases on imports from approximately 100 U.S. trading partners, suggest that the costs will only continue to rise. Alex Durante, a senior economist at the Tax Foundation, noted that a wide array of U.S. businesses reliant on imports are being impacted by the tariffs.
Despite these tangible effects, President Trump and his cabinet maintain that tariffs are not negatively affecting Americans. However, data points to a different reality, with indicators such as weak job numbers, rising core inflation, and a decline in orders for durable goods hinting at the tariffs’ drag on the economy.
Major U.S. companies are not immune to the tariff repercussions, with many raising prices and issuing profit warnings. Retail giants like Walmart and Best Buy, footwear brands such as Nike and Crocs, and household goods manufacturers like Colgate-Palmolive are among the businesses adjusting prices in response to the tariffs. Additionally, tech giant Apple, Berkshire Hathaway, and Stanley Black & Decker have reported substantial tariff-related costs impacting their operations.
As the economic landscape shifts, there are concerns about the potential impact on public opinion. While current polling data shows more disapproval than approval for tariffs among Americans, the true test may come if tariff costs accumulate and directly affect consumers. The possibility of businesses passing on these costs or absorbing them could have broader implications on investment, job creation, and overall economic growth.