The impact of new tariffs is already being felt globally, causing a ripple effect that could lead to layoffs, bankruptcies, and higher prices for consumers. The effects are immediate, with clothing retailers, bakers, and tech companies struggling to adapt to the changing landscape.
The stock market is not an accurate reflection of Main Street businesses, but the Russell 2000 index, which tracks small companies across industries, has seen a nearly 20% decline this year. This decrease in confidence suggests that public trust in business prospects is waning.
“The market is like a real-time poll,” said Ken Mahoney of Mahoney Asset Management. “This will undoubtedly impact all businesses.”
Early signs are already evident, with electronics trade group IPC predicting a 30-50% rise in the cost of critical components sourced from overseas. Automaker Stellantis paused production at multiple factories and laid off hundreds of employees due to the tariffs.
The effects are not limited to multinational corporations. Irrigation company Lindsay Corp. warned that tariffs would increase its costs, which it plans to pass on to farmers already struggling with foreign retaliatory tariffs on US goods.
Nintendo’s recent cancellation of a new video game console is just one example of how tariffs can disrupt even large companies. With no clear solution in sight, businesses are facing an uncertain future.
The long-term implications are far-reaching, with many experts warning that this could be a fundamental reordering of the economy. Americans may soon face disruptions to their standard of living, and companies will need to adapt quickly to avoid significant losses.
As President Trump’s “Liberation Day” tariffs approach, multinational businesses are bracing for impact. With few options to shift supply chains, Corporate America is facing an uncertain future.
Source: https://www.axios.com/2025/04/05/tariffs-force-companies-prices-layoffs-bankruptcy