Tariffs can have a profound impact on businesses in several ways:
Cost Increase: For businesses that rely heavily on imported goods, tariffs increase the cost of goods sold (COGS), which can lead to higher prices for consumers. Supply Chain Disruption: Businesses might need to find alternative suppliers if tariffs make their current suppliers too expensive. Competitive Disadvantage: Domestic businesses that rely on imported components may find themselves at a disadvantage compared to those that source materials locally. Market Access: Tariffs can limit access to international markets, affecting exporting businesses.