President Donald Trump’s trade policies have forced companies like KAVU True Outdoor Wear to make tough decisions as tariffs on imported goods take effect.
The company, founded by Barry Barr in 1993, had initially absorbed the costs of tariffs on products from countries like Vietnam and India. However, as the tariff landscape became more stable, Barr increased prices for its summer 2026 line, with some items rising up to 30 percent.
Barr’s strategy is emblematic of a shift in approach among companies across the US. Since Trump’s trade policies took effect in the spring, businesses have had to contend with delays and uncertainty.
However, as more tariffs set in and the policy seems to be solidifying, many companies are now concluding that they can no longer afford to hold back. Public companies like QVC Group, Allbirds, and Warby Parker openly talked about their tactics to handle the escalating tariff costs on earnings calls with investors.
The impact of these decisions could have wide-ranging implications for the economy. If companies raise prices, it could push up inflation and chill consumer spending. Similarly, if businesses begin to fire or hire workers amid uncertainty, this labor hoarding could break as policy is resolved.
Economists warn that Trump’s tariffs are unlike anything seen in 100 years, with vast impacts on global trade. The Federal Reserve is closely watching both inflation and the labor market for signs that the tariffs are affecting the broader economy.
Source: https://www.nytimes.com/2025/08/09/business/trump-tariffs-prices-layoffs.html