Little by little, American businesses and consumers are feeling the effects of the tariffs imposed by U.S. President Donald Trump. The impact of these tariffs is becoming increasingly evident, with examples ranging from the Detroit Three automakers facing billions in extra costs to a stainless steel cookware manufacturer in Tennessee hit with a $75,000 US tariff bill on a single shipment, and even coffee shops contemplating raising prices due to tariffs on Brazilian imports.
While companies had previously managed to shield consumers from the full impact of the tariffs by rushing supplies or absorbing costs, the situation is changing. Tariffs on imports from nearly 100 U.S. trading partners are expected to increase this week from the current 10 percent baseline, leading to a surge in tariff-related expenses.
According to Alex Durante, a senior economist at the Tax Foundation, the tariffs are affecting a wide range of U.S. businesses reliant on imports. He expressed skepticism about the administration’s attempts to attribute price increases to factors unrelated to the tariffs, stating that most people are unlikely to be convinced by such explanations.
Despite the overall stability of the U.S. economy, recent data indicates that tariffs are having negative effects, including weak job numbers, rising core inflation, and a decline in orders for durable goods. Trump and his cabinet members have dismissed evidence linking the tariffs to economic challenges, with the president emphasizing the significant revenue generated by tariffs.
In contrast to these denials, reports show numerous U.S. companies responding to the tariffs by raising prices and issuing profit warnings. Major retailers and brands such as Walmart, Nike, and Apple have all been impacted by the tariffs, with significant costs incurred. The repercussions extend beyond corporate balance sheets, with a noticeable decrease in international travel to the U.S., possibly influenced by the administration’s trade rhetoric.
Although polling indicates growing disapproval of tariffs among Americans, the issue has not yet significantly damaged public opinion of Trump and the Republicans. However, if businesses continue to pass on tariff costs to consumers, the impact could become more pronounced. Durante warns that even if companies absorb some of the price increases, it could hinder investments in business growth and job creation, leading to broader negative effects on the economy.