Reuters: Trump's tariffs to lift companies' costs and hurt exports

[Dennis Donovan]

Reuters - Trump's tariffs to lift companies' costs and hurt exports

By Christoph Steitz, Casey Hall and David Gaffen
April 3, 2025
7:36 AM EDT

Summary
• Tariffs could disrupt trade and increase costs for firms
• Shipping firms flag disruption to global economy
• Companies may raise prices or cut investments
• Sportswear brands hit by Asian manufacturing exposure

FRANKFURT/SHANGHAI/NEW YORK, April 3 (Reuters) - Businesses around the globe on Thursday faced up to a future of higher prices, trade turmoil and reduced access to the world's largest market after U.S. President Donald Trump confirmed their worst fears by instituting broad tariffs worldwide.

Trump ramped up his trade war with tariff rates from 10% to nearly 50%. He says the levies will bring jobs back to the United States - but company executives were focused on possibly raising prices, reducing shipments, or cutting back investment activity outright.

"The reality is stark: these tariffs will push prices higher on thousands of everyday goods - from phones to food - and that will fuel inflation at a time when it is already uncomfortably persistent," said Nigel Green, CEO of global financial advisory deVere Group.

Shipping companies, one of the main conduits of global trade, were among the first to sound the alarm on Thursday while many other business leaders kept a low profile as they pondered the new reality.

"The tariff plan announced by the U.S. administration was significant, and in its current form, it clearly isn't good news for (the) global economy, stability and trade," Maersk, the world's second-largest container shipping firm, said.

/snip

[dalton99a]

1. Yep. BOTH imports and exports will be more expensive

Fucking moron

[Squaredeal]

2. Domestic-made will go up too.

As exports drop, fixed overhead doesn’t, meaning the profitability of the goods sold will decrease. Businesses will raise prices as demand falls to remain profitable.

[dalton99a]

3. +1. Absolutely

[hlthe2b]

4. "lift"-- what a weird way to put it. Just can't bear using the term "increase" or "raise" or any other

term, you think TSF is using a keyword search to identify and punish, Reuters? Really? "lift?"

[IronLionZion]

5. The cost of services will increase too

since everything from healthcare to construction use imported supplies, equipment, and materials.

[BlueWavePsych]

6. Kick

[LiberalLovinLug]

7. Um.....is anyone asking where exactly this new tariff windfall is going?

I suspect that much of it is going to be used by the Trump admin for whatever purpose they want.

In Canada, they have pledged to use the retaliatory tariff money to compensate those affected most from the Trump tariffs.

I haven''t heard what the POTUS is planning to use his own tariff cash for. It will be in the billions even trillions you gotta think