The Impact of U.S. Tariffs on Global Businesses
President Donald Trump’s tariffs have caused significant disruptions in the U.S. market, leading to delays, price hikes, and pauses in sales by several companies. The impact of these tariffs is widespread, with both large corporations and small businesses feeling the pressure. The escalation of the trade war, particularly between the U.S. and China, has left many companies reconsidering their operations in the U.S. and even halting sales entirely.
Major Companies Pausing Sales to the U.S.
One of the most notable companies affected is Nintendo, which recently announced a delay in Switch 2 preorders in the U.S. due to the tariffs. Although the official release date remains unchanged, the preorders are on hold, and it’s uncertain whether prices will increase for U.S. consumers.
Framework, a company known for its modifiable laptops, has also paused sales of certain models to the U.S. due to the April 5 tariffs. The company is not currently selling specific laptop models and has delayed the price announcement for its new Laptop 12.
Razer, another tech company, has gone even further by halting all laptop sales to the U.S., with “Notify Me” buttons replacing purchase options on their website. Other vendors are still selling Razer laptops, but the availability could be limited due to the sales pause.
Automotive and Toy Industries Affected
Jaguar Land Rover has paused shipments of luxury vehicles to the U.S., following Trump’s 25% import tax on vehicles. This pause in shipments could affect U.S. consumers looking to purchase high-end vehicles.
Basic Fun, a toy company known for products like Care Bears and Tonka Trucks, has also paused shipments of toys manufactured in China. The company’s CEO, Jay Foreman, cited the risk of high tariffs as the reason for halting exports to the U.S.
Swiss Watchmakers and Small Businesses Face Challenges
Swiss watchmakers, including Audemars Piguet, Breitling, and Rolex, are also halting shipments to the U.S. due to a 31% tariff imposed by Trump. These tariffs add significant costs to luxury goods, leading companies to pause shipments to avoid the financial burden.
Small businesses are feeling the brunt of these tariffs, with many forced to raise prices or halt sales altogether. Sarah Wells, founder of Sarah Wells Bags, had to pay an additional $15,000 in fees to retrieve her goods from customs due to tariff hikes. Emily Ley, owner of Simplified, has even filed a lawsuit against the Trump administration, claiming that the tariffs will cost her business an extra $630,000 this year.
Ongoing Impact on the U.S. Economy
While large companies like Nintendo and Razer make headlines for pausing their operations, smaller businesses are struggling quietly in the background. With the added costs of tariffs, many of these companies will be forced to raise prices, which could discourage consumers from purchasing goods, further impacting the U.S. economy. This ongoing situation will likely continue to affect the market as more companies announce pauses in sales and business.
