economy
Trump tariff fallout: Some industries grapple with lingering effects one year later
A year after his "liberation day," Trump's trade war has reshaped how companies in industries such as retail and autos are modeling economic and policy risk.
TL;DR
- Companies are still dealing with the effects of President Trump's tariffs imposed a year ago, leading to economic and political uncertainty.
- Industries like retail, automotive, consumer packaged goods, and pharmaceuticals are adapting to changes in global supply chains.
- Around 80% to 85% of tariff costs were absorbed domestically by U.S. corporations, either through reduced profits or increased prices for consumers.
- Companies have been forced to become more flexible and diversify their supply chains, with a gradual shift away from single-country sourcing.
- The Supreme Court ruled some country-specific tariffs unconstitutional, but the administration announced new global tariffs under different statutes.
- Overall imports into the U.S. remained high in 2025, partly due to companies pulling forward inventory.
- The retail industry has been disproportionately affected, with smaller businesses struggling more than larger ones.
- The automotive industry faces billions in additional costs, but the impact has been less severe than initially expected due to some reprieves.
- Consumer packaged goods companies often import key commodities, making supply chain diversions difficult, leading to higher costs for manufacturers.
- The pharmaceutical industry has fared better due to drug pricing agreements with the administration, which included exemptions from tariffs in exchange for price cuts and investment in U.S. manufacturing.