Tariffs Spark Global Business Uncertainty, Pressure On Prices

Global businesses brace for higher costs as U.S. imposes tariffs, impacting prices and investment. Companies are altering strategies to cope with increased costs, while consumers face inflation. Asian producers and European luxury brands, among others, confront challenges as price hikes and supply disruptions loom large.

Global businesses are on edge over U.S. tariff hikes, which threaten to drive up costs and complicate trade. President Trump, in an attempt to protect American jobs, has imposed tariffs ranging from 10% to nearly 50%, prompting widespread concern about price hikes and investment reductions.

German shipping giant Hapag-Lloyd warns of shifts in cargo flows and increased costs, reflecting a broader apprehension among European and Asian companies. Major retailers like Walmart and Target anticipate price increases and squeezed margins as they navigate a changing economic landscape.

With luxury brands like Ferrari and Illy Caffe facing price increases, and Asian supply chains disrupted, the ripple effects of tariffs are felt globally. Experts predict challenges in maintaining sales and investments, signaling a potential economic slowdown.

(With inputs from agencies.)