Tariffs imposed by Trump adversely affecting key American trade partners, fostering resistance and worry
The United States' implementation of higher tariffs on imports from dozens of countries is causing significant operational difficulties in global supply chains, declining imports, reshaping trade flows, and increasing costs for consumers.
South Africa's attempt to improve its offer in exchange for a lower tariff rate failed, leaving the country with higher tariffs on its goods imported into the U.S. Switzerland's President Karin Keller-Sutter returned home empty-handed from an 11th-hour trip to Washington aimed at averting the U.S. import tariff on Swiss goods.
According to the 2025 National Foreign Trade Council (NFTC) Supply Chain Survey, 94% of companies reported that tariffs are hindering the procurement of raw materials, critical for manufacturing and production capacity. These disruptions also impact warehousing and aftermarket services, leading to project delays and cost inflation. Many companies face sourcing challenges due to lack of domestic availability of inputs and rising costs.
The National Retail Federation forecasts a 5.6% decline in U.S. import cargo volumes at major ports in 2025, largely attributed to the tariffs. This reduction results in fewer goods on store shelves and higher prices for consumers. Small businesses are particularly affected, facing difficulties in remaining competitive due to increased costs.
China’s imports to the U.S. have declined nearly 30% compared to 2018, reflecting the direct impact of tariffs. However, China has compensated for lost U.S. business by increasing exports to other regions, such as Southeast Asia (+17% year-on-year in June 2025) and the European Union (+7.6%).
Companies express strong desires for a more structured and transparent tariff approach, including phased implementation and predictability, paired with investment incentives, workforce training, and collaboration mechanisms, to support U.S. competitiveness. There is also a call for expanding trade engagement with priority partners like the E.U., China, India, and key Asian manufacturing hubs.
Despite disruptions, tariffs are escalating. For example, goods previously subject to a 25% tariff may face increases to 30%, affecting a broad range of products and adding further pressure on global trade and supply networks.
In summary, U.S. higher tariffs are causing significant operational difficulties in supply chains, declining imports, reshaping global trade flows, increasing costs for U.S. consumers, and compelling trade partners to adapt by diversifying export destinations. Businesses and industries call for clearer, more balanced trade policies to mitigate these negative impacts.
References:
- NFTC Supply Chain Survey
- National Retail Federation
- U.S.-China Trade War Impact
- Tariff Increases
- Tariff Impact on Consumers
- The business sector is championing for a more transparent and structured tariff approach, advocating for mechanisms such as phased implementation, predictability, investment incentives, workforce training, and collaboration, to support U.S. competitiveness.
- The entertainment industry, though not directly impacted, is expressing concerns about potential ripple effects as increased consumer costs could result in lowered disposable income, which in turn may affect consumer spending patterns.
- War-and-conflicts and politics, while separate phenomena, are intertwined with trade policy as conflicts can escalate trade tensions, leading to retaliatory tariffs, further disrupting global supply chains and exacerbating operational difficulties.
- The increasing tariffs have led to general-news discussions around the need for a balanced trade policy that takes into account the interests of both businesses and consumers, to minimize the negative impacts on the economy as a whole.
