Some business owners in the U.S. are voicing concerns about potential repercussions from President Donald Trump’s tariffs set to take effect in 2026.
In early April, Trump introduced extensive “Liberation Day” tariffs affecting various trading partners. Although many American companies have managed to keep consumer prices stable up until now, some economists are forecasting difficulties as tariffs could start to impact businesses more significantly next year. This was shared by Politico on Monday.
Joseph Feldman, a senior managing director at Telsey Advisory Group who specializes in retail, expressed his worries during an interview with Politico. He said, “In the first half of next year, we are concerned that consumers are going to start to see the price increases become a little more broad based, and there may not be all the holiday promotions to help clear through some of that. That could lead to a bit of sticker shock for some people.”
During an earnings call in November, Jeff Howie, CFO of Williams-Sonoma, noted that the negative effects of the tariffs had taken longer to show on the company’s profitability than initially expected. Nonetheless, he mentioned that they plan to continue raising prices.
White House Spokesman Kush Desai shared a statement with the Daily Caller News Foundation, emphasizing confidence in the Trump administration’s policies that aim to provide historic tax relief and bring down drug prices, while also criticizing media and Democratic narratives around tariffs.
Wayne Winegarden, a senior fellow at the Pacific Research Institute, highlighted concerns about U.S. companies being caught in a difficult position due to the tariffs. He mentioned that while businesses can only wait for so long, pressure is mounting, impacting inventories and overall operations.
American retail giant Kohl’s is also hinting at potential price increases in 2026. Jill Timm, the company’s CFO, acknowledged that there will be increased pressure moving into next year but remains optimistic about how they’ve countered it thus far.
Jared Hendricks, CEO of Village Lighting, a Utah-based holiday decorations firm, revealed that his company has been operating at a loss. He indicated a shift from focusing on profits to merely managing tariff payments, stating, “This year, we’ve been a little sheltered, but next year will be worse.”
Thomas Savidge, a research fellow at the American Institute for Economic Research, noted that many American business owners are understandably worried, given that tariffs may complicate their ability to serve customers effectively. He added that trying to absorb these costs can lead to less inventory and reduced hiring, which ultimately affects consumers even when they don’t see immediate price increases.
In related news, the National Retail Federation (NRF) reported a new record of 202.9 million U.S. consumers shopping from Thanksgiving to Cyber Monday, up from 197 million the previous year, signaling a vibrant holiday shopping season.
NRF President Matthew Shay commented on this trend, noting that the holiday shopping experience remains important for families and reflects engaged consumers looking for value.
Despite the spending surge, many shoppers are turning to “buy now, pay later” options and relying on credit cards, as reported by various outlets. National Economic Council Director Kevin Hassett expressed optimism about the U.S. economy’s prospects during a recent media appearance.
However, a Gallup poll released Thursday indicated that consumer confidence hit a 17-month low in November, raising questions about long-term economic stability.
