President Trump is planning to impose 25% tariffs on Mexico and Canada, and 10% tariffs on China, making a signature campaign promise and core economic philosophy of his administration a reality. Many companies across the economy have been preparing for a new tariffs war, with some bringing in products early to avoid the tariffs.
Large companies in consumer sectors, such as Walmart, Columbia Sportswear, and Lenovo, have been moving quickly to get as much product as they can into the U.S. before the tariffs take effect. Importers have been bringing in critical goods for infrastructure projects, such as solar panels, backup power supply items, and lithium batteries used in data centers.
However, not all companies can afford to bring products in early. A family-owned shoe retailer, Deer Stags, imports around two million shoes a year from China and sells them in Macy’s, Kohl’s, JCPenney, and on Amazon. The company’s “razor-thin margins” prohibit it from frontloading products, and consumers may ultimately have to pay more.
The impact of tariffs will be felt more broadly than it was during Trump’s first term, with tariffs expected to affect food, the auto sector, furniture, and toys from Mexico. Even companies that have made moves in recent years to restructure supply chains and manufacturing can’t move fast enough to avoid significant impacts from tariffs.
The president of SurfaceArt, a tile and tile-related products manufacturer, says that the U.S. simply does not have the ability to manufacture the tile that the U.S. market requires, and that a blanket tariff on imports would affect everyone in the U.S. who needs to get ready.