The Indicator from Planet Money Why Trump's potential tariffs are making business owners anxious
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Jan 23, 2025 President Trump's proposed tariffs on imports from China, Canada, and Mexico are stirring unease among U.S. business owners. The uncertainty surrounding these tariffs can significantly affect economic stability. We hear firsthand from owners impacted by past trade wars, revealing how unpredictable trade policies disrupt operations. A corn and soybean farmer shares the challenges posed by international competition, highlighting the far-reaching consequences of tariffs on local businesses and markets.
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Soybean Farmer's Trade War Experience
- Brad Smith, a soybean farmer, was hit by the 2018 U.S.-China trade war.
- China placed tariffs on U.S. soybeans, causing Smith to lose money and shift to planting more corn.
Lasting Impacts of Trade Wars
- The U.S.-China trade war caused lasting impacts, like farmers shifting crops.
- New tariffs on Mexican goods could further complicate matters for farmers like Brad Smith, who exports corn to Mexico.
Three Ways Uncertainty Hits Businesses
- Uncertainty from tariffs affects businesses through uncertain costs, potential retaliation, and operational changes.
- Economist Luis Baldomero Quintana explains how these factors complicate business planning and competitiveness.