How Companies are Reacting to Trump's Tariffs

Quickly after their implementation just last week, many American companies have swiftly responded so that they could adapt to the changing economic environment.

A clothing section inside of a Macy's department store.

Donald Trump's so-called "Liberation Day" tariff spree has targeted a variety of goods from across the world, most particularly with America's largest trading partners like China, India, and Vietnam. The nation imports a vast amount of cheap manufactured products as well as raw materials from these places, especially smaller American businesses that lack sufficient funds to buy more expensive American products. On some countries that have allegedly "tariffed" the United States by excessive margins (which has proven to be inflated due to currency exchange rates and non-artificial trade barriers), like Madagascar and Vietnam, tariffs were placed on the highest.

Due to these immensely high tariffs that could pose a threat to the price of all sorts of goods, many companies have reacted so that they could continue business. Some of the largest companies, including AI innovators like Oracle and Taiwan Semiconductors, have begun investing billions into relocating production facilities over to the United States for cheaper rates. Also, some companies have tried using diplomacy to pressure foreign nations to concede to the demands of the Trump administration so that tariffs could be reduced.

However, for most companies, usually small to medium, have not faired well so far to these high tariff rates. Clothing brands, from Nike to Lululemon, have frozen or even laid off additional employees while delaying the importation of foreign goods; many of these same companies have also considered raising the prices of their goods to combat 40%+ tariff rates.

Many companies have already cancelled orders from Vietnam, a key exporter of textiles.