Global Trade Faces Turmoil as U.S. Tariffs Loom

Businesses globally face escalating costs and trade disruption due to U.S. tariffs. Shipping firms warn of economic instability, while companies eye investment cuts, price hikes, or supply chain shifts. Sectors from sportswear to alcohol anticipate price inflation, affecting both high-income consumers and everyday goods.

Businesses worldwide are anticipating higher costs and trade disruptions following U.S. President Donald Trump's intensified tariff strategies. Announced on Thursday, these tariffs range from 10% to a staggering 50% on various goods, impacting global trade significantly. Company executives are contemplating price hikes, shipping reductions, and potential investment cutbacks.

The shipping sector has sounded the alarm early, projecting destabilizing effects on the global economy. While some business leaders remain circumspect, Maersk, a leading container shipping firm, openly criticized the U.S. administration's tariff plan as detrimental to economic stability and international trade.

Sportswear giants like Nike and Adidas have already felt the impact, witnessing stock declines due to their dependence on Asian markets. Similarly, U.S. retailers such as Target and Best Buy face margin squeezes and potential price hikes, while European firms consider passing on the costs to consumers.

(With inputs from agencies.)