US President Donald Trump’s recent tariff hike has sparked mixed reactions across the US economy, with some industries benefiting from the protectionist measures while others struggle. The 10-20% tariffs imposed on goods from Canada, Mexico, China, and Europe have hit various sectors hard, including automakers, tech giants, and wine producers.
US-based automakers like General Motors, Ford, and Stellantis are in the “eye of the storm” as tariffs impact nearly every facet of their supply chains. The average cost of manufacturing a vehicle could swell by $400 per car if the tariffs remain in place. Tesla, another US-based automaker, has warned it could be exposed to disproportionate impacts from retaliatory tariffs.
Tech giant Apple, which manufactures its hardware in China, is set to take a major hit from tariff-related hikes unless CEO Tim Cook secures an exemption. The company’s stock is down 13% since January 1.
However, some industries are benefiting from the tariffs. Wine producers and suppliers of California almonds, which more than one-third of their shipments go to Europe, could see significant revenue boosts due to increased demand for domestic products. Champagne and other wine imports from European Union countries face a whopping 200% tariff, causing a run on these luxury drinks.
The escalating trade war has also spooked Wall Street, with the tech-heavy Nasdaq index plunging over 2,300 points or nearly 12% over the last 30 days. Large-cap stocks in the tech sector are among the hardest hit.
Despite concerns about short-term market volatility, Treasury Secretary Scott Bessent and other Trump allies argue that the tariffs will create long-term gains for the US economy and American people. However, experts caution that the impact of these measures could be far-reaching and unpredictable.
The dispute has triggered a series of retaliatory measures from countries affected by the tariffs, including Canada’s imposition of $21 billion worth of tariffs on US-made goods. The escalating trade war raises questions about the effectiveness and fairness of Trump’s protectionist policies and their potential consequences for the global economy.
Source: https://nypost.com/2025/03/14/business/trump-tariff-battle-with-canada-mexico-china-and-europe-points-to-early-winners-losers