Business
Trump’s Tariffs Are Already Reshaping the Economy—Here’s Who’s Paying the Price
By Jake Beardslee · February 12, 2025
Winners and Losers of the Tariff Plan
While tariffs pose challenges for multinational corporations with complex supply chains, they present opportunities for domestic businesses with minimal foreign exposure. According to David Bianco, the Americas Chief Investment Officer at DWS Group, protectionist policies will incentivize local investment and consumption, benefiting certain sectors of the U.S. economy, Business Insider reported.Software, cloud services, and digital platforms, which do not rely on physical imports, are expected to remain largely unaffected by tariffs. "Whether it be software as a service, internet, social media, digital technology, or communications — they're not too worried about tariffs," Bianco noted. Staff Sgt. Danny Gonzalez / Wikimedia
US Aluminum Industry Calls on Trump for Tariff Exemptions for Canada
The U.S. aluminum industry is urging former President Donald Trump to grant tariff exemptions for Canada amid ongoing trade tensions. Trump's proposed 25% tariff on steel and aluminum imports is expected to significantly impact Canada, one of the top suppliers of both metals to the U.S. Other key exporters, including Mexico, Brazil, the United Arab Emirates, and China, are also likely to be affected by these trade policies. Anamul Rezwan / Pexels
Financial Sector and Low-Margin Businesses Poised for Growth Under Trump Policies
Meanwhile, the financial sector is positioned to gain from these policies. Regional banks, which have limited international exposure, are expected to see growth due to deregulation under Trump. Clayton Gardner, co-CEO of Titan, a wealth management firm, anticipates that low-margin, cyclical businesses like grocery stores, dollar stores, home builders, and small airlines will experience the most significant benefits. “They have razor-thin margins as it is,” Gardner said, explaining that lower corporate taxes and deregulation will further boost their profitability, as reported by Business Insider. Arturo A / Pexels
Boost for Domestic Manufacturing
Smaller manufacturing firms could emerge as the biggest winners from Trump's policies. States like Kentucky and Tennessee, known for their automobile production, are already witnessing a resurgence in manufacturing investments. Additionally, high-end manufacturing, including semiconductor production, may continue its return to the U.S., building on bipartisan efforts like the CHIPS Act under the Biden administration. Blaz Erzetic / Pexels
Ripple Effects in Other Sectors
The fashion industry is already experiencing disruptions. Companies like Shein and Halara have paused some influencer marketing campaigns due to uncertainties surrounding tariff policies. The ongoing trade war could escalate further, leading to retaliatory tariffs that may impact S&P 500 companies. Analysts at Bank of America estimate that retaliatory tariffs could slash corporate earnings by up to 8%. Kai Pilger / Pexels