With import duties now set at historic levels, companies weigh survival strategies
President Donald Trump’s sweeping new tariffs on more than 90 countries took effect on August 7, marking the highest overall US tariff rates in nearly a century. The measures, first announced in April and later adjusted during months of negotiations, impose levies of up to 50% on some imports. India and Brazil face the steepest rates at 50%, followed by Switzerland at 39% and China at 30%.
The tariffs aim to reduce the US trade deficit and encourage manufacturing to return to American soil. Export-reliant economies in Southeast Asia have been hit particularly hard, with Laos and Myanmar facing 40% duties. Some allies, including the European Union and the United Kingdom, secured reduced rates of 15% and 10%, respectively.
Businesses brace for higher costs
For US companies dependent on imported goods, the tariff rollout has shifted strategies from waiting to immediate action. The New York Times reported that outdoor apparel company KAVU will raise retail prices by up to 30% next year and prepare layoffs due to rising costs. “There’s absolutely no way I can make a profit this year absorbing all these tariffs,” founder Barry Barr said.
Other brands, including Crocs, Allbirds, and Warby Parker, are planning price increases, expense cuts, and supply chain restructuring. Economists warn that if such adjustments are widespread, they could push inflation higher and slow consumer spending.
Political and legal disputes
The rollout comes as Trump defends his tariff authority in court. In May, the US Court of International Trade ruled he exceeded his legal powers, a decision now under appeal. CNN reported Trump warned that a loss in court could trigger a “Great Depression” reminiscent of 1929, calling it a “judicial tragedy” with “no way” to recover from.
Economists, however, challenged his assessment. Gregory Daco of EY-Parthenon said tariff revenues of $70–$80 billion last year are minor compared with the nearly $7 trillion in federal spending and that removing them could be “stimulative.”
Effectiveness remains in question
Trump has credited tariffs with driving stock market gains, but market strategist Art Hogan told CNN the link is “unambiguously backwards,” noting that markets only recovered when tariff increases were paused.
Economist Bert Hofman of the National University of Singapore said the final rates bring stability after months of chaos, allowing countries to begin assessing long-term effects.
How do you think these tariffs will affect the global economy? Share your insights in the comments below.
