President Donald Trump's imposition of tariffs on goods from Canada, Mexico, and China has sent shockwaves through the U.S. business community. From ice cream parlors to medical supply companies, businesses are preparing for significant price hikes and potential economic fallout. The tariffs, which take effect Tuesday, are expected to increase inflation and dampen consumer spending, leading to an overall slowdown in the U.S. economy.
From an ice cream parlor in California to a medical supply business in North Carolina to a T-shirt vendor outside Detroit, U.S. businesses are bracing to take a hit from the taxes the levies — 25% on Canadian and Mexican and 10% on Chinese goods – will take effect Tuesday. Canadian energy, including oil, natural gas and electricity, will be taxed at a lower 10% rate.
Mexico’s president immediately ordered retaliatory tariffs and Canada’s prime minister said the country would put matching 25% tariffs on up to $155 billion in U.S. imports. China did not immediately respond to Trump’s action. The Budget Lab at Yale University estimates that Trump’s tariffs would cost the average American household $1,000 to $1,200 in annual purchasing power. Gregory Daco, chief economist at the tax and consulting firm EY, calculates that the tariffs would increase inflation, which was running at a 2.9% annual rate in December, by 0.4 percentage points this year. Daco also projects that the U.S. economy, which grew 2.8% last year, would fall by 1.5% this year and 2.1% in 2026 “as higher import costs dampen consumer spending and business investment.’’ A medical plane carrying a child patient and 5 others crashes in Philadelphia, setting homes ablaze The Penny Ice Creamery in Santa Cruz, California, has had to hike prices of its ice cream — including popular flavors “strawberry pink peppercorn’’ and “chocolate caramel sea salt’’ — repeatedly in recent years as an inflationary surge increased the cost of its supplies. “I feel bad about always having to raise prices,’’ said co-owner Zach Davis. “We were looking forward to inflation coming down, the economy stabilizing in 2025 ... Now with the tariffs, we may be back at it again.’’ Trump tariffs, Davis said, threaten to drive up the cost of the mostly made-in-China refrigerators, freezers and blenders he’ll need if Penny Ice Creamery goes ahead with plans to add to its six shop
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