US businesses are struggling with uncertainty due to President Donald Trump’s erratic trade policies, which are threatening investment and economic growth. The latest reversal of tariffs on Canada and Mexico has left companies like Marc Rosenberg, founder of The Edge Desk, feeling frustrated.
Rosenberg is introducing a new ergonomic chair designed to reduce customers’ back pain and boost productivity, but he can’t settle on a price due to the 20% tariff on imports from China. The tariff uncertainty is making it difficult for businesses to plan for the year.
Economist Eswar Prasad said that tariffs create an enormous amount of uncertainty for multinational companies that sell products worldwide. “The uncertainty is going to be very unsettling for businesses and it will hurt business investment,” he added.
The first Trump administration imposed tariffs on specific targets, but this time, President Trump has invoked his power to declare a national emergency to impose tariffs on Canada, Mexico, and China. The expansion of his tariff targets has created confusion among businesses, with some companies delaying or canceling investments that help drive economic growth.
“Right now, the tariffs are putting everybody off balance because of their unpredictability and uncertainty,” said John Gulliver, president of the New England-Canada Business Council.
Businesses like Taylor Samuels, owner of Las Almas Rotas, a bar and restaurant in Dallas, are being forced to review their plans due to the uncertainty surrounding the tariffs. Similarly, Sandya Dandamudi of GI Stone, a stone supplier in Chicago, said builders are having to rethink their plans due to new tariffs.
The tariffs have also affected small businesses like Holly Seidewand’s First Fill Spirits, which sells Canadian whisky and other specialty spirits. Her plans for 2025 have been put on hold due to the tariffs, and she won’t be able to sign any new contracts unless clients address the tariffs.
As the situation continues to evolve, businesses are urging the administration to provide clear direction on how they will implement their policies. Until then, uncertainty and volatility will continue to affect businesses across the US.
Source: https://apnews.com/article/trump-tariffs-business-uncertainty-canada-mexico-china-2b01e586faf99bae3438d289f48a1add