From ice cream parlors in California to medical supply shops in North Carolina and T-shirt vendors near Detroit, U.S. businesses are bracing for a cost shock as President Donald Trump slaps tariffs on imports from Canada, Mexico, and China — America’s top three trading partners.
Effective Tuesday, the new tariffs impose a steep 25% on Canadian and Mexican goods (with Canadian energy enjoying a friendlier 10% rate) and 10% on Chinese products. In a classic international trade twist, Mexico’s president has already ordered retaliatory tariffs, and Canada plans matching measures on up to $155 billion of U.S. imports, while China remains tight-lipped for now.
Yale University’s Budget Lab estimates these tariffs will cost the average American household between $1,000 and $1,200 in annual purchasing power. Meanwhile, EY’s chief economist Gregory Daco predicts a 0.4 percentage point bump in inflation—from a 2.9% rate in December—and warns that U.S. economic growth could slow from last year’s 2.8% to around 1.5% this year and 2.1% in 2026.
At Santa Cruz’s Penny Ice Creamery, co-owner Zach Davis is already feeling the pinch. “We’ve been raising prices on flavors like ‘strawberry pink peppercorn’ and ‘chocolate caramel sea salt’ for years, but adding a 25% tariff on imported refrigerators, freezers, blenders, and even sprinkles could really squeeze our margins,” he laments. His wry comment about tariffs adding a “25% sprinkle on our profits” underscores the tiny profit margins that make a big difference.
In Asheville, North Carolina, CEO Casey Hite of Aeroflow Health is concerned that tariffs on Chinese-made supplies—like breast pumps—might force his company to either compromise on quality or pass costs along to insurance premiums, affecting patients down the line. Meanwhile, Michigan’s Linda Schlesinger-Wagner of skinnytees vows to absorb the extra cost on imported apparel rather than shock her customers with higher prices.
Some industries have stockpiled goods to soften the blow, but sectors like supermarkets, where you can’t hoard avocados or bananas, will feel the tariff impact almost immediately. Construction companies, too, face rising material costs compounded by labor shortages, setting the stage for delayed projects and higher prices.
Personal Opinion:
In my view, Trump’s tariffs are a double-edged sword. On one side, they aim to protect domestic industries; on the other, they risk jacking up costs for everyone—from your local ice cream parlor to your weekly grocery run. It’s a high-stakes economic gamble that might protect some sectors while delivering a not-so-sweet deal to consumers. Only time will tell if this tariff game pays off or leaves us all reaching for the coupon book.
