American companies save as Trump tariffs: NPR

It is not just American consumers who feel the effects of tariffs – companies across the country will also do it.

President Trump imposed on Tuesday on Tuesday in the imports of three of the largest trading partners in the state -China, Mexico and Canada -who make concerns about increasing prices, a falling stock market and retaliation against US exporters.

Taxes are expected to lead to higher prices for a variety of imports, including Canadian wood, fresh products from Mexico and toys from China. Mark Zandi from Moody's Analytics informed the Morning Edition that the tariffs would cost the typical US family of $ 1,200 a year.

But the tariffs will also be expensive for American companies. Most will try to pass on the tax costs to consumers, but many of the costs probably have to absorb some of the costs themselves.

And companies also acted in a state of suspension, not certain when or whether the import taxes would be taken.

“Customers are pausing new orders due to uncertainties in relation to tariffs,” a factory manager told the Institute for Supply Management on manufacturing conditions because of his monthly survey.

“What-Wenn scenarios”

Randy Carr heads a company based in FT. Lauderdale, which produces embroidered emblems for sports teams and work uniforms. Much of the production takes place in Mexico.

Carr said he would try to pass on the new import tax to customers by increasing prices, but assumes that he has to bear some of the costs themselves. As a result, he temporarily hired the investments in his factories in Texas and Georgia.

“We have a plan to deal with it, but to be honest, it is a punishment for my employees and the growth of the business because it is only a different form of a tax,” said Carr.

Dealing with the tariff was a distraction, he added.

“We don't run the business,” said Carr. “We don't take care of our customers. I don't take care of my employees. I take care of the scenarios for tariffs.”

American farmers are concerned

Canada and China quickly reacted with their own tariffs to US exports. Mexico promised to do the same in the coming days.

These tariffs could violate American producers. China, for example, imposed retaliation tariffs on products such as corn, cotton, soybeans and pork.

This Tit-for-Tat alerts Bob Hemesath, which collects corn and pigs in Decorah, Iowa. He is concerned about the possible effects on rural communities across the country.

“There are many jobs related to agriculture and agricultural trade,” he said. “As soon as you lose these export markets, it is terrible to get them back.”

A trade war during Trump's first term of office hit agricultural exports so hard that the federal government ultimately made agricultural aid payments of more than 60 billion US dollars – a large part of the money that was brought in by tariffs for imports from China.

Trump's new tariffs could also increase the costs for potash fertilizers, a large part of which comes from Canada.

“Let us make it as short as possible and solve it as soon as possible,” said Hemesath.

The US Chamber asks Trump to reverse the tariffs

The US trade chamber, which welcomed a large part of Trump's Pro Business Agenda, asked the administration to quickly withdraw the trade war.

“The tariffs will only increase prices and increase the economic pain of everyday Americans across the country,” said Neil Bradly, Chief Policy Officer of the Chamber. “We ask for the review of this guideline and a quick end to these tariffs.”

In the meantime, the shares fell on Tuesday, with the Dow Jones Industrial Average fell by almost 600 points until noon. On Monday there was a decline of 650 points after Trump said that it was “no longer a place for a deal to avoid the tariffs.

The tariffs include a 25% tax for most imports from Mexico and Canada as well as a tax of 10% for Canadian energy products. Trump also imposed an additional tax of 10% for imports from China and said that all three countries hadn't done enough to stop the river of illegal fentanyl.