Trump tariffs are arriving whether you like it or not, but why are US business owners running scared?

Donald Trump is now the US President after the gala inauguration ceremony at the US Capitol on January 20. As soon as he took the dias after taking oath as the US President, his long speech included the announcement of executive orders putting his tariff plans into implementation.

Trump tariffs becoming a big headache for US businesses?

Reports suggest that a 10% tariff on Chinese imports and a 25% tariff on imports from Canada and Mexico will become a harsh reality in the coming week, which is now making business owners in the US rather nervous. As soon as Trump tariffs go live, US companies that import foreign products, especially those made in China, Canada, and Mexico, will have to face exorbitant amount of tariff rates for these trades. And this will, in turn, affect their respective consumers, who will have to bear the brunt.

Moreover, there are also fears that the US economy could have to face some ripple effects after the implementation of Trump tariffs. According to an NPR report, US businesses can also face a less tangible cost, which is uncertainty.

FAQs:

What are Trump tariffs?
When the US Presidential election campaign was on, Donald Trump had promised US citizens that he would be imposing a lot of tariffs on imported products, from China, Canada, and Mexico, in order to save the local industries of the US.

Will Trump tariffs lead to inflation?
There are high chance that imported goods from other countries, which are cheaper than locally-made products, would see a major rise in prices after Trump imposes import tariffs. This could then lead to inflation in the US, suggest reports.