🌟 A recent survey by Barcelona-based Freightos reveals that nearly 50% of U.S. small- and medium-sized enterprises (SMEs) have seen import costs soar by over 20% thanks to Washington’s tariff policies. 🚚💸 Almost as many businesses have cut shipment volumes to cope with the higher bills.
'Unfortunately, small- and medium-sized businesses are bearing the brunt of the trade war,' says Adam Lewis, president of Clearit Customs Brokerage. Unlike global giants, SMEs lack the financial buffers and expertise to handle frequent tariff changes, currency swings, and rising fees.
Beyond storefronts and warehouses, the impact trickles down to consumers. A Yale University analysis found that higher import taxes are likely to push an additional 650,000 to 875,000 Americans below the poverty line—because price hikes lift the inflation-indexed poverty threshold without raising incomes. 📈🏠
According to Judah Levine, head of research at Freightos, 'We’re seeing not just short-term disruptions, but potential long-term shifts in how companies source and price goods.' 🔄
On the legal front, the U.S. Court of Appeals recently ruled that former President Trump overstepped by using the International Emergency Economic Powers Act to impose tariffs. The U.S. Supreme Court will weigh in early November—a decision that could reshape future trade strategies.
As tariff debates heat up, SMEs and households alike are bracing for more twists in this trade saga. 🌍🔍
Reference(s):
cgtn.com
