…and could hardly be more destructive if it were designed by our worst enemies on the world stage, meaning Russia, China, and Iran.
Some companies are likely to fall by the wayside due to Trumponomics, but the negative impacts are unlikely to stop there.
Companies which may not suvive include Target, Walmart, Nike, Levis, GM, Ford, and even Tesla, but they are just at the very tip of the iceberg. These are some of the household names that may not survive Trump’s totally needless trade war with the world.
At the other end are countless small companies who depend on Chinese, Indian, Indonesian, Vietnamese and, yes, Mexican companies to supply them with low-cost supplies, parts, or finished products. While a few (very few) are mom and pop operations employing mom or pop or both, the vast majority employ anywhere from a few to a fairly large number orf employees who will be out on the pavement if they can’t sell their goods at attractive prices.
When companies manage to survive initially, their products may become significantly more expensive. For example, domestically produced iPhones, made with American raw materials, American-made parts, and using American labor, are estimated to cost around $3000 each. Will they be competitive at that price point? Only if the competition’s phones are similarly more expensive.
Will we all be forced back to the kind of wired and dumb phones we used to use before iPhones and Androids came along? Yeah, could be, which would be sad if folks outside our borders remain in the 21st Century when it comes to telephonic tech.
And, of course, computer tech would be in a similar position with, for example, the desktop-equivalent laptop I recently bought for around $300 costing nearly three times more.
I asked Google’s Gemini AI for a list of major companies whose survival is threatened by president trump’s tariff war and got this response.
**********
President Trump’s trade policies, particularly the imposition of tariffs, have created significant challenges for various major companies and industries, threatening their survival or at least impacting their profitability and operations. While it’s difficult to list companies definitively “on the brink of survival” solely due to tariffs, here are major companies and sectors that have been significantly threatened or impacted:
Companies and Industries Directly Impacted:
Retailers with High Import Dependence: Companies like Walmart and Target are heavily reliant on imported goods, especially from China, Vietnam, and Bangladesh. Tariffs increase their costs, which they may pass on to consumers through higher prices, potentially affecting sales and margins. Walmart has already indicated it will be raising prices and has undergone corporate layoffs, although they insist these are not solely due to tariffs.
Apparel and Footwear: Brands such as Nike, Gap, and Levi’s source a significant portion of their products from Asian factories. Tariffs on clothing and shoes from countries like China, Vietnam, and Bangladesh directly increase their costs, leading to potential price hikes for consumers or eroded profit margins.
Consumer Electronics and Tech Hardware: Companies like Apple, Dell, HP, and Cisco rely heavily on manufacturing in China and components from places like Taiwan and South Korea. Tariffs on these imports can significantly increase production costs for devices like smartphones, laptops, and networking equipment. While some large tech companies like Apple have announced investments in U.S. manufacturing, the scale of current reliance on overseas production makes them vulnerable.
Semiconductor Companies: While some U.S. chipmakers like Nvidia, AMD, and Intel are expanding domestic production, they still depend on foreign foundries (like TSMC in Taiwan) and global supply chains for advanced chip fabrication and components. Tariffs on semiconductors from key manufacturing hubs could raise costs across the tech sector.
Automakers and Auto Parts Suppliers: Companies like General Motors, Ford, and Tesla have significant exposure to imported raw materials (like steel and aluminum) and foreign-made auto parts. While tariffs on imported vehicles might benefit some domestic production, the increased cost of imported components can lead to higher vehicle prices and dampened consumer demand.
Toy Manufacturers: Mattel announced plans to raise prices for some of its toys sold in the U.S. to offset higher costs from tariffs, as a significant portion of their global production is in China.
Broader Industry Concerns:
Agriculture: U.S. agricultural exporters, particularly soybean, corn, and pork farmers, faced significant revenue losses due to retaliatory tariffs from countries like China during the previous trade war. While specific companies are not usually named as “on the brink,” the collective impact on the industry and individual farmers can be severe. Major food companies like Cargill, Archer Daniels Midland, and Tyson Foods could also lose export earnings.
Heavy Machinery and Construction Equipment: Manufacturers like Caterpillar rely on imported steel and components. Unlike steel producers, they may struggle to pass these increased costs to customers due to global competition.
Airlines and Hospitality: Tariffs that raise fuel and food costs (e.g., on Canadian oil or Mexican produce) can impact companies like Delta or Marriott, making it difficult to maintain profitability without passing costs to price-sensitive consumers.
Small Businesses: Many small businesses, especially those relying on specific imported goods (like specialized sports equipment or olive oil), face significant challenges in adjusting to higher tariff costs and potential cash flow disruptions.
It’s important to note that companies often try to mitigate the impact of tariffs through strategies like diversifying supply chains, negotiating with suppliers, or absorbing some of the costs. However, for companies with narrow margins or heavy reliance on affected imports, the prolonged pressure from tariffs can significantly threaten their financial stability and long-term survival.
.
