These tariffs are going to hit harder than most people expect. They’re not just targeting foreign companies — they’re going to ripple through the entire global supply chain, slamming U.S. businesses and everyday Americans in the process.
Most U.S. businesses operate on razor-thin margins, often around 10% or less. A blanket 10% tariff means many companies will be forced to either eat the cost (which they can’t afford) or pass it on to consumers (who are already struggling with high prices). Either way, it’s a recipe for disaster — lower profits, lower demand, layoffs, and ultimately, business closures.
And let’s not forget the broader picture: the 20%+ annual growth we’ve seen in recent years was largely fueled by cheap capital, stimulus, and a post-COVID recovery boom. Those days are gone. Higher rates, sticky inflation, declining consumer sentiment, and now protectionist policies? That’s a toxic mix.
Don’t be fooled by short-term bounces. If this keeps up, we’re likely heading back to S&P 3500–3800 territory — or worse.