Trump's tariffs are a nightmare for companies big and small
Why it matters: The cycle is just starting now, but the pain is immediate.
From clothing retailers who get all of their production from heavily tariffed Asian countries, to bakers whose pastries depend on newly levied imported vanilla, to the tech companies whose batteries need the minerals China just cut off in retaliation, this weekend will be a scramble to figure out how to survive the new world order.
The big picture: The stock market is not the economy, but if you want a decent proxy for Main Street businesses, look at the Russell 2000, a broad measure of the stock market's small companies across industries.
It's down almost 20% this year alone.
That in and of itself doesn't make a business turn the lights off, but it says something about public confidence in their prospects.
"The market is like a real time poll ... this is going to impact all businesses in one way or another undoubtedly," Ken Mahoney of Mahoney Asset Management wrote Friday.
Zoom out: The early signs are everywhere, large and small.
Electronics trade group IPC estimates the cost of critical components coming from overseas will rise 30% to 50%. Even if you're already manufacturing domestically, the parts you need from somewhere will get expensive, quickly.
Automaker Stellantis paused production at multiple factories and laid off hundreds of people.
Irrigation company Lindsay Corp. said the tariffs would increase its cost of goods, which it would pass through to customers. Those customers are farmers, who are now getting squeezed by foreign retaliatory tariffs on U.S. goods.
It's only April, but already Christmas is getting complicated, too. Forty-eight hours after announcing a pre-order date for its new video game console, Nintendo had to cancel it. Turns out there's now massive tariffs on the countries where it's manufactured.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Motor 1
43 minutes ago
- Motor 1
Big Surprise: The Hemi V-8 Ram 1500 Is Explosively Popular
It's never easy to admit a mistake, but that's what Ram CEO Tim Kuniskis did last month. The brand had dropped the Hemi V-8 engine from the 1500 with the 2025 revamp, which some buyers didn't like. Ram is rectifying that error for 2026, and it appears customers are eager for the engine's return. The automaker said that it had received over 10,000 orders for the Hemi-powered 1500 within the first 24 hours after announcing its return . Kuniskis said in Stellantis's second-quarter sales results that the brand is already seeing 'consumer interest spurred by the return of the Hemi V-8.' Photo by: Ram Hemi Availability Ram said the V-8-powered 1500 will go on sale this summer, each one wearing a special " Symbol of Protest " badge. The 5.7-liter engine makes 395 horsepower and 410 pound-feet of torque, as it did before, while featuring the same eTorque hybrid system. This was one way Ram could speed the development and get the truck on sale as quickly as possible. The engine is an optional upgrade for the 2026 1500, which costs up to $1,200 on trucks equipped with the standard engine. Ram is offering the V-8 in Tradesman, Big Horn, Express, Warlock, Laramie, Limited, and Longhorn trims to start, with the Rebel arriving later. The V-8 is a free upgrade on the Limited and Longhorn, which comes standard with the high-output 3.0-liter inline-six high-output engine. What Comes Next Back in April, Kuniskis said Ram had 25 product launches scheduled for the next 18 months, and this is one of the first. The brand is also returning to NASCAR. However, it's unclear what Ram will launch next. There are rumors the TRX could return in 2026 . And with the announcement that Stellantis is reviving SRT , it seems like anything and everything is back on the table, even passenger vans . Here's More Ram News: 2026 Ram 2500 Warlock: An Even Tougher Off-Road Truck Ram Lengthened Its Warranty Because We're Keeping Cars Longer Than Ever Get the best news, reviews, columns, and more delivered straight to your inbox, daily. back Sign up For more information, read our Privacy Policy and Terms of Use . Source: Ram Share this Story Facebook X LinkedIn Flipboard Reddit WhatsApp E-Mail Got a tip for us? Email: tips@ Join the conversation ( )
Axios
an hour ago
- Axios
Stephen Miller-backed group files complaint against Dodgers over DEI
A group backed by White House Deputy Chief of Staff Stephen Miller has filed a federal complaint against the Los Angeles Dodgers over the team's diversity, equity, and inclusion (DEI) practices. Why it matters: The Dodgers are one of the most popular MLB teams among Asian, Black and Mexican American fans and recently committed $1 million to help immigrants affected by President Trump's immigration raids in Southern California last month. The big picture: The complaint is part of a larger strategy by MAGA conservative-led groups to attack private companies that are keeping programs aimed at helping or recruiting people of color. Zoom in: America First Legal (AFL) announced this week it has filed a federal civil rights complaint with the U.S. Equal Employment Opportunity Commission (EEOC) against the Dodgers and the investment firm Guggenheim Partners. The group says the reigning World Series champions are "engaging in unlawful discrimination under the guise of 'diversity, equity, and inclusion' (DEI), in violation of Title VII of the Civil Rights Act of 1964." The complaint alleges that the Dodgers "appear to be engaging in similar unlawful DEI practices by allowing race, color, and sex to motivate employment decisions." AFL specifically attacks Dodgers' programs that seek to help Asian Americans, Black Americans and Latinos, which the group claims are unlawful. The Dodgers and controlling owner Mark Walter's Guggenheim Partners did not immediately respond to Axios for comment. The team participated on Sunday in a "Salute to the Negro Leagues" game against the Kansas City Royals where Dodgers player wore Brooklyn Dodgers caps. The intrigue: AFL in its announcement cited the Dodgers saying U.S. Immigration and Customs Enforcement agents were denied access to parking lots outside Dodger Stadium last month. MAGA conservatives responded angrily on social media to the Dodgers, and the Department of Homeland Security denied that it had asked for access. Between the lines: The complaint comes as Trump's Justice Department is using a broad reinterpretation of Civil Rights-era laws to focus on " anti-white racism" rather than discrimination against people of color. In March, MLB removed the word "diversity" from its MLB Careers home page in reaction to Trump's executive order ending "equal opportunity" for people of color and women in recruiting. The change appears to affect MLB's Diversity Pipeline Program, which Baseball Commissioner Rob Manfred launched in 2016. What they're saying: "Stephen Miller's group is dressing up vengeance as legal action," Jared Rivera, chief of staff of the advocacy group PICO California, said after the complaint was filed. Retaliating against the Dodgers for their compassion shows Miller is threatened when the team and its fans stand up for what is moral and right." PICO California was one of the groups urging the Dodgers to speak out more about the immigration raids. Context: The Dodgers had come under criticism earlier this month for failing to speak out against ICE raids in LA and for unsuccessfully pressuring a singer not to perform a Spanish version of the national anthem at a Dodgers game. Latino fans — especially Mexican Americans — comprise a large percentage of the Dodgers' fan base, a trend that has been ongoing since the late 1980s, when Mexican-born left-handed pitcher Fernando Valenzuela played for the team. Fun fact: The Dodgers are credited with helping spark the civil rights movement by calling up Jackie Robinson in 1947, which broke MLB's modern-day color line.
CNBC
2 hours ago
- CNBC
Trump announces Vietnam trade deal, 20% tariff on its imports to U.S.
President Donald Trump said Wednesday that the United States has struck a trade deal with Vietnam that includes a 20% tariff on the southeast Asian country's imports to the U.S. Trump's announcement on Truth Social said that the deal will give the U.S. tariff-free access to Vietnam's markets. Vietnam also agreed that goods would be hit with a 40% tariff rate if they originated in another country and were transferred to Vietnam for final shipment to the United States. The process, known as transshipping, is used to circumvent trade barriers. China, a top exporter to the U.S., has reportedly used Vietnam as a transshipment hub. Trump wrote that "Vietnam will pay" that 20% duty, but tariffs are taxes on foreign goods that are paid by the importers of those products. The agreement was unveiled less than a week before a 90-day pause on many of Trump's so-called reciprocal tariffs was set to expire, sending U.S. duties on imports from dozens of countries soaring. Under that protectionist trade scheme, Vietnamese imports to the U.S. were subject to a 46% blanket tariff. That rate was lowered to 10% during the 90-day interim. Raising the tariff on Vietnamese goods to 20% will hike costs for U.S. importers, which could be passed on to consumers or suppliers. The S&P 500 nevertheless rose slightly on news of the trade deal. "It is my Great Honor to announce that I have just made a Trade Deal with the Socialist Republic of Vietnam after speaking with To Lam, the Highly Respected General Secretary of the Communist Party of Vietnam. It will be a Great Deal of Cooperation between our two Countries. The Terms are that Vietnam will pay the United States a 20% Tariff on any and all goods sent into our Territory, and a 40% Tariff on any Transshipping. In return, Vietnam will do something that they have never done before, give the United States of America TOTAL ACCESS to their Markets for Trade. In other words, they will "OPEN THEIR MARKET TO THE UNITED STATES," meaning that, we will be able to sell our product into Vietnam at ZERO Tariff. It is my opinion that the SUV or, as it is sometimes referred to, Large Engine Vehicle, which does so well in the United States, will be a wonderful addition to the various product lines within Vietnam. Dealing with General Secretary To Lam, which I did personally, was an absolute pleasure. Thank you for your attention to this matter!" It was unclear from Trump's post when the deal will take effect, or if it has been officially signed by both parties. Trump has signaled that he may ignore or revise the upcoming deadline for his reciprocal tariffs to snap back higher. The 90-day pause, which lowered tariffs on nearly all other countries to a blanket 10% rate, was imposed in early April to give countries breathing room while they negotiate deals with the U.S. With the deadline approaching, the Trump administration has only struck revised trade frameworks with China and the United Kingdom, though it has repeatedly said the U.S. is close to deals with numerous other countries. Vietnam, whose exports to the U.S. reportedly comprised 30% of its gross domestic product last year, is especially vulnerable to Trump's tariffs. Critics of Trump's unpredictable tariff policies warn that the duties create economic uncertainty and will result in higher prices for U.S. consumers. The Trump administration and its defenders counter that tariffs do not cause inflation and note that the president's duties have brought in billions of dollars to the U.S. government. A pricing model created for CNBC this month by retail consulting group AlixPartners found that a 10% U.S. tariff on Vietnamese goods would cause the price of an imported men's sweater to rise by about 8%. Under the 46% tariff Trump initially slapped on Vietnam, the price of that same sweater would rise roughly 35%, the group found. U.S. Federal Reserve Chairman Jerome Powell said Tuesday that officials expect the impacts of Trump's tariffs will start to show up more during the summer months. Prices on certain items, including apparel and footwear, are already ticking higher as a result of the tariffs, CNBC has reported. Some analysts believe the lack of a widespread impact on U.S. prices so far is the result of pre-tariff stockpiling by companies, as well as the time it takes for those tariffs to show up in the economy.
