Businesses Scramble to Mitigate Impact of Trump’s Tariff Plans
As President-elect Donald Trump prepares to take office, anxiety is gripping the business community. Companies are frantically seeking ways to protect themselves from his proposed tariffs, which could significantly increase production costs and consumer prices.
A Mad Dash for Exemptions
Nicole Bivens Collinson, a leading expert in international trade and government relations, has been inundated with calls from worried businesses. “Everyone is calling,” she says. “It’s nonstop.” Companies are desperate to find loopholes and exemptions to avoid the hefty tariffs, which could be as high as 60% for Chinese goods.
Economists and Industry Leaders Sound Alarm
Trump’s protectionist trade approach has sent shockwaves through the economic community. Experts warn that across-the-board tariffs could lead to higher production costs, inflation, and even recession. “The threat of tariffs has alarmed retailers and a wide range of other U.S. businesses,” says David French, senior vice president of government relations at the National Retail Federation.
Lobbyists in High Demand
As companies scramble to mitigate the impact of Trump’s tariffs, lobbyists are in high demand. Ron Sorini, a principal at Sorini, Samet & Associates, takes multiple calls daily from companies seeking guidance on navigating the complex tariff landscape. “Firms are prepared,” says SUNY Buffalo finance professor Veljko Fotak. “The real winners of this process are going to be the lawyers and lobbyists.”
Companies Prepare for the Worst
In anticipation of Trump’s tariff plans, companies are stockpiling goods, preparing price hikes, and exploring ways to move production out of China. Steve Madden, for instance, has pledged to reduce its Chinese imports by 45% over the next year. However, small businesses may not have the same luxury, and experts warn that they could be disproportionately affected.
A Call to Action for Small Businesses
“What I would urge is that folks look at the impact on small businesses,” says Sorini. “Those are the people that are really getting hurt. There’s got to be some way to help companies like that.” As the business community waits with bated breath for clarity on Trump’s tariff plans, one thing is certain – the stakes are high, and the winners will be those who can navigate the complex landscape of tariffs and exemptions.
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