Little by little, American businesses and consumers are beginning to feel the financial repercussions of the tariffs imposed by U.S. President Donald Trump. The impact of the tariffs is becoming increasingly evident, with examples ranging from major automakers like the Detroit Three facing billions of dollars in extra costs to a stainless steel cookware manufacturer in Tennessee grappling with a $75,000 tariff bill on a single shipment. Even coffee shops are contemplating raising prices due to tariffs on Brazilian imports.
While companies had previously managed to shield consumers from the full brunt of the tariffs by rushing supplies into the country or absorbing the levies themselves, the situation is set to worsen. Tariffs on imports from nearly 100 U.S. trading partners are scheduled to increase this week from the current 10 percent baseline, indicating that tariff-related expenses will only escalate.
Alex Durante, a senior economist at the Tax Foundation in Washington, notes that a wide array of U.S. businesses reliant on imports are being affected by the tariffs. Durante expressed skepticism about the administration’s ability to convince the American public that price hikes are unrelated to the tariffs, stating that most people are unlikely to be misled.
Despite assertions by Trump and his cabinet that tariffs are not negatively impacting Americans, recent data paints a different picture. Weak job numbers, rising core inflation, and a decline in orders for durable goods such as appliances and automobiles hint at the tariffs’ drag on the economy. U.S. Trade Representative Jamieson Greer has adamantly denied any correlation between the tariffs and the job market slump.
Numerous U.S. companies, including retail giants like Walmart and Best Buy, footwear brands such as Nike and Crocs, as well as household goods manufacturers like Colgate-Palmolive and Procter & Gamble, have been forced to raise prices in response to the tariffs. Major players like Apple, Berkshire Hathaway, and Stanley Black & Decker are also reporting significant tariff-related costs impacting their businesses.
The escalation in prices could potentially sway public opinion, especially if businesses continue to pass on tariff costs to consumers. Despite the current lack of significant public backlash against Trump and the Republicans over the tariffs, the situation could change as consumers increasingly feel the economic impact of the tariffs.