US companies faced with Trump’s trade tariffs

Donald Trump sees the introduction of universal trade tariffs as a way of making the rest of the world pay for its allegedly unfair trade practices. It would be a zero-sum game where the US wins and everyone else loses. The reality is different. The Beige Book and ISM surveys indicate that US companies view the threat of another tariff war, this time more extensive than in 2018-2019, with concern. This could increase the price of their inputs and disrupt trade. The structure of foreign trade shows that the US would suffer from higher tariffs, without even waiting for retaliation from other countries.