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U.S. Businesses Brace for Impact as Trump’s Tariffs Take Effect
American businesses across multiple industries are preparing for financial strain as former President Donald Trump’s newly imposed tariffs on imports from Canada, Mexico, and China take effect. The levies, which include a 25% tax on Canadian and Mexican goods and a 10% tax on Chinese imports, are set to be implemented on Tuesday, with Canadian energy products facing a lower 10% rate.
According to estimates from the Budget Lab at Yale University, these tariffs could cost the average American household between $1,000 and $1,200 in annual purchasing power. Economists also warn of broader economic consequences, with inflation projected to rise by 0.4 percentage points this year and U.S. economic growth expected to slow from 2.8% in 2023 to a decline of 1.5% in 2025 and 2.1% in 2026.
Small Businesses Face Rising Costs
For businesses like The Penny Ice Creamery in Santa Cruz, California, the tariffs could mean higher costs for essential equipment imported from China, including refrigerators, freezers, and blenders. Co-owner Zach Davis fears that rising expenses will force him to raise prices yet again. Even small items like sprinkles—imported from Ontario—will be affected by a 25% tax, potentially cutting into the shop’s already thin profit margins.
In North Carolina, Casey Hite, CEO of Aeroflow Health, a medical supply company, worries that the increased cost of Chinese-manufactured breast pumps and other supplies will ultimately lead to higher health insurance premiums for American consumers. With insurance reimbursement rates locked in before the tariffs, Aeroflow may be forced to either accept financial losses or switch to lower-quality products.
Similarly, Linda Schlesinger-Wagner, owner of Skinnytees, a Michigan-based women’s apparel brand, expects higher costs due to the 10% tax on Chinese imports. Although she plans to absorb the expense rather than pass it on to customers, she predicts that consumers will soon see price hikes across the board on everything from clothing to food and cars.
Supply Chain Disruptions and Inflation Concerns
While some industries have stocked up on goods in anticipation of the tariffs, experts warn that the economic impact will be felt within months. Construction companies, for example, have been hoarding materials, but once their inventories dwindle, the price of materials will likely spike, causing project delays and increased costs.
Supermarkets and produce vendors, however, have no ability to stockpile perishable goods. In Nogales, Arizona, tomato distributor Rod Sbragia fears that the import taxes will lead to fewer choices for consumers and higher prices on fresh fruits and vegetables.
Even American farmers could face economic consequences, as Canada, Mexico, and China may impose retaliatory tariffs on U.S. agricultural products. In Trump’s first term, China responded to tariffs by targeting American soybeans and pork, prompting the administration to spend billions in taxpayer money to compensate farmers for lost sales.
As the new tariffs take effect, many in rural America are counting on similar relief measures. “The Trump administration provided a safety net,” said Lee Wicker of the North Carolina Growers Association. “Farmers trust that he’s going to take care of anybody who’s hurt by the tariffs.”
With economic uncertainty looming, business owners and consumers alike are bracing for the financial fallout of Trump’s latest trade measures.
News
Investigation Underway After Goa Nightclub Fire Kills at Least 25
Authorities in the Indian state of Goa have opened an investigation into a nightclub fire that killed at least 25 people, including several tourists, in one of the region’s most popular party districts. Six others were injured in the blaze, which broke out shortly after midnight in Arpora, a nightlife hub about 25 kilometres from the state capital, Panaji.
Goa Chief Minister Pramod Sawant confirmed the death toll in a statement posted on X, saying the victims included many of the club’s kitchen staff and a small number of visiting tourists. He added that all the injured were in stable condition and receiving medical treatment. Rescue teams recovered all bodies from the site.
Early reports from local police, cited by the Press Trust of India, indicated that a gas cylinder explosion triggered the fire. Witnesses, however, told the agency that the blaze appeared to start on the club’s first floor, where nearly 100 tourists were dancing at the time. As smoke and flames swept through the building, many people ran toward the lower floor, where they became trapped along with staff members.
Sawant said a formal inquiry would determine the exact cause and whether the club complied with fire safety regulations. He pledged strict action against anyone found responsible, writing on X that any negligence uncovered by investigators would be “dealt with firmly”.
Eyewitnesses described scenes of panic as patrons attempted to flee the burning building. “We rushed out of the club only to see that the entire structure was up in flames,” said Fatima Shaikh, who was inside when the fire began.
Prime Minister Narendra Modi offered condolences in a message on X, calling the incident “deeply saddening” and wishing the injured a swift recovery.
Local media reported that the club’s location along the Arpora River backwaters posed challenges for emergency crews. A narrow approach road forced fire engines to park about 400 metres from the entrance, slowing their response. Reports also revealed that the building had previously received a demolition notice after officials found it lacked a construction permit. That order was later withdrawn by senior state authorities, according to Arpora councillor Roshan Redkar.
Incidents involving gas cylinders and electrical faults are not unusual in India and often lead to heavy casualties, prompting renewed calls for stronger enforcement of safety standards. Opposition leader Rahul Gandhi criticised the tragedy as a “criminal failure of safety and governance” and urged a transparent investigation to establish accountability and prevent future disasters.
The probe into the fire is expected to assess structural safety, emergency exits and compliance with existing regulations as authorities work to piece together how the late-night gathering turned into one of the deadliest incidents in the state in recent years.
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White House Unveils “Media Hall of Shame” Portal as Attacks on Press Intensify
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