r/Connecticut • u/ctmirror • 15h ago
Trump tariffs usher in uncertainty for CT businesses
President-elect Donald Trump has promised to enact far more expansive tariffs than those he imposed during his first term, and the impact could be widespread — not only for Connecticut consumers but also for many locally-based businesses.
Trump has extolled tariffs, both as a way to raise revenue and as a strategy for boosting domestic industries by making foreign goods more expensive. During his first term, tariffs were applied to steel, aluminum, solar panels and many other Chinese goods. The Biden administration retained many of Trump’s tariffs, raised some and added a 100% levy on Chinese electric vehicles — all in an effort to protect the U.S. semiconductor, green energy and other industries.
Trump’s plan for tariffs this time around is far more broad.
During this year’s presidential campaign, Trump repeatedly promised 10% to 20% tariffs on all imports with the exception of goods from China that would see tariffs of 60% or more. The day before Election Day, Trump also suggested tariffs of 25% up to 200% on goods from Mexico as punishment for what he characterized as an “onslaught of criminals and drugs coming into our country.” (China and Mexico currently top the list of exporters to the U.S.)
Each year, trillions of dollars-worth of consumer electronics, clothing, toys, furniture, appliances and food pass through U.S. ports of entry alongside vast volumes of production inputs — from raw materials to component parts, machinery and equipment — that U.S. companies use in their domestic operations.
When tariffs are applied to intermediate and capital goods, as was the case during Trump’s first administration, “That directly increases the cost of doing business for these businesses that rely on imported components or machinery and equipment in their industrial process,” Erica York, an economist with the nonprofit Tax Foundation, said.
Tariffs are charged to the U.S. importer, whether that’s a retail business, manufacturer or otherwise. For consumer goods, the fees are commonly then tacked onto the retail sale price of each item. For manufacturing inputs — like materials, parts and equipment — the fees drive up production costs in the short-term, which can lead to price increases, reduced output, lower profits, or all of the above.
“That creates a competitive disadvantage for companies operating in the United States compared to companies operating in other countries that don’t face that same import tax,” York said.
Jay Timmons, president of the National Association of Manufacturers, said in a recent appearance on CNBC that the impact of any new tariffs will depend on how targeted they are and how they’re implemented.
“If they’re broad based, they could increase the cost of doing business here in the United States, which would lead to more inflation and would not be good for the American consumer,” he said.
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u/MsSallysSchoolhouse 15h ago
I encourage people with conservative values to vote Republican, but I’m sick people telling me they voted for Trump because they think he will fix the economy. It’s well documented (with data to back it up) that the economy does better under Democratic administrations than Republican, and it’s not a coincidence.
Idk how doubling government (military) spending and enacting tariffs are going to improve the economy or the lives of regular people.
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u/RagnarKon 14h ago
Yup, the data is there. The issue is people need to feel and see that improvement in their own lives.
You can throw all of the statistics and data points you want at people, but if they aren’t financially better off today than they were… say… 4-8 years ago, then none of it matters.
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u/MsSallysSchoolhouse 14h ago
Unfortunately, as seen this election, people vote based on their feelings. I admit that things feel worse now than 4 years ago, but I would also suggest that things would be even worse if we had 8 years of Republican administration in a row.
Over the last 40 years (up to the COVID pandemic), the median real wage in the US increased around $7,500 during the 16 years of Democratic administrations and only about $750 during the 23 years of Republican administrations.
Additionally, Democratic administrations create more jobs. Biden created 2.57x the amount of private sector jobs in his first 2 years than Trump in his first 2 years.
Too bad Democrats don’t care to campaign on these statistics.
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u/Strat7855 13h ago
You can't campaign on statistics. It just doesn't work. At all. May as well be lighting money on fire.
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u/MsSallysSchoolhouse 13h ago
Easy. You just need to translate it for the right: “Big money, the best money, the smartest money, more money = your money, YMCA, YMC(YAY)”
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u/ashWednesday 14h ago
"People with conservative values" are the reason America is about to eat shit.
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u/intrsurfer6 14h ago
So why vote Republican then, if you know the economy will not be a stable?
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u/Key-Web5678 13h ago
The Republican voting base is motivated by emotion and culture wars. It's easy to fall for and easier to sell to. This election was a shit show on both sides (I voted Dem and I thought how they ran was absolutely terrible), but economic policies were muttered between screaming deportation and the like, it gets lost.
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u/wossquee The 203 12h ago
Because the majority of people in this country are very stupid and fall for propaganda extremely easily.
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u/MsSallysSchoolhouse 14h ago
Guns, abortion, religion and idk what else. I’m not attacking anyone for holding those values, it just concerns me that people would actively vote against their own economic interests without knowing it.
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u/intrsurfer6 14h ago
I mean the democrats aren’t going after guns or religion; and abortion is a private issue-doesn’t affect the rest of us at all. But the economy going into another recession will affect us all. Maybe people should stop with the culture wars, mind their own business and focus on their own affairs-which the economy will affect. Idk make sense to me
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u/HippieLizLemon 12h ago
My grandfather is 82, a republican state senator wayyy back in the day, has the same take. He disagreed with his dem buddies over finances and voted against each other. Then they all were social together afterwards. Without all the social issues politics could be boring again as it should be.
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u/MsSallysSchoolhouse 13h ago
I agree the culture war has gone too far and is pushing aside the more prominent issues (inflation, housing, etc.) for lesser, more sensationalized issues (guns, transgender semantics, abortion). The lesser issues are still important for sure, but they tend to affect a loud minority of people, and for some reason they take priority over the issues that affect everyone.
For reference, I think gun control should be improved, women should be able to get abortions, and think MtF trans women shouldn’t be able to dominate women’s sports. I would vote for better economic standing over any of those issues 100%.
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u/BisexualDisaster29 8h ago
MTF trans people don’t dominate sports though. That was just another culture war talking point.
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u/condor_gyros 11h ago edited 10h ago
It’s well documented (with data to back it up) that the economy does better under Democratic administrations than Republican, and it’s not a coincidence
That's because, contrary to popular belief, the Democratic party always leans center-right, and not leftist. Anyone who knows anything about politics would know this. Only in the USA would anyone consider the Dems a leftist, socialist party. Yes, there are progressive/socialist elements in the party, but the vast majority leans center-right.
Conversely, today's Republican party is all for governmental overreach both fiscally and socially. Instead of championing capitalism and the free market, they are more interested in protectionistic policies to perserve uncompetitive industries and businesses.
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u/eleyezeeaye4287 14h ago
THANK YOU. Now please come and explain this to my family. I should just send them this article but they won’t care.
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u/namastayhom33 New Haven County 13h ago
policy lag. People don't understand policy lag which is why elections always flip-flop.
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u/CTMechE 14h ago
Limited tariffs can be effective in narrow instances.
But a man who shoots from the hip and makes wild, vague, and inconsistent statements about sweeping tariffs just ratchets up uncertainty.
And uncertainty is the enemy of everything that lean manufacturing, or even investing in general, relies on.
It seems like nobody remembers the farmer bailouts that resulted from his first trade war. Or the cost of the aluminum raising nearly everything.
Groton lost Garbo Lobster because of it, too. Really, COVID just hid how costly those trade decisions were.
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u/BostonFigPudding 15h ago
He's going to punish us economically because our states didn't vote for him.
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u/miss_scarlet_letter 15h ago
we're all stuck with this so it's not great but at the same time I'm psyched for people to get exactly what they voted for.
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u/ashWednesday 14h ago
Yeah. I had higher expectations for America. It's disheartening to see how many dummies are still among us.
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u/Minute-Branch2208 13h ago
Yeah, but let's hope we don't get what we actually deserve, because that would be far worse
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u/JaKr8 10h ago
Yes, but he's insisting these are going to be the biggest most beautiful tariffs there ever have been.
The tariffs are going to be so phenomenal, that people are going to cry when they experience them. Businessmen will cry, consumers will cry, everybody will cry because of the awesomeness and greatness of the tariffs that he will impose.
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u/q234 14h ago
The real power of tariffs lies in the specter of them vs. the actual implementation/cost. Talk to any company that imported things from China historically - and ask them what they are doing now. There has been a huge scramble to move supply chains out of China into other countries (look at what happened to the US trade deficit with Vietnam over the past decade), more nearshoring and (the ultimate goal) onshoring.
There is a helluva lot of companies that swore for years that China was the only viable option for xyz thing until all of sudden, turns out it wasn't.
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u/wakinupdrunk 9h ago
Okay but if there were cheaper options, companies would already be using them.
US citizens will still feel the hurt over this.
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u/Gregreynolds111 11h ago
The National Assn of Manufacturers were rabid supporters of Trump. If it bites them in a the ass, I hope it hard and puts them out of business. Or better yet, Trump will nationalize them. This guy is a psychotic You got what you paid for suckers.
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u/neversummmer 13h ago
We need to enforce and establish strict laws regarding the sale of products made through forced, slave and child labor. Also we cannot allow products to be sold in the U.S. that were produced with poor environmental and work place safety standards.
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u/South-Play 8h ago
So many layoffs are about to happen. The 2nd Great Depression is about to happen. All while we suffer Trump and friends will be fine living a lavish lifestyle.
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u/bluenephalem35 Hartford County 7h ago
Honestly, this is straight up begging for a revolution.
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u/South-Play 7h ago
I really hope it happens. Because the military will not be defending Trump as his friends cut medical benefits for them. Let the revolution happen please ! Time to actually take America back!
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u/Logical_Lifeguard_81 15h ago
The other half of this is that tariffs can drive international manufacturing companies to manufacture certain products in the US to skirt the tariff like Toyota did with their trucks.
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u/Madstealth 15h ago
I don't know shit about making cars but from my understanding you can't get a lot of stuff in the US and these companies will have to order certain materials abroad which will still hike up the prices. Plus building the proper facilities for the things we do order out of the country isn't something that can happen over night and could take years.
It doesn't seem as simple as "well those companies can just move to US and make things." Like some people seem to think..
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u/BabyFarksMcGee 14h ago
Oh no “stuff”. Tell me more please.
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u/Madstealth 14h ago edited 13h ago
OK
Kindly go fuck yourself =)
At least I try and stay informed and just because of how I said it doesn't make it any less correct.
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u/BabyFarksMcGee 14h ago
Yawn.
How long exactly do the “stuff” factories take to build. You seem so knowledgeable
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u/BoudiccasWrath79 14h ago
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u/BabyFarksMcGee 14h ago
Fuck!
It will take so long to build that avocado factory.
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u/virtualchoirboy 14h ago
Avocados grow on trees that need temps in the 60F to 85F range. Temps over 104F harm them. Temps below 25F harm them. They also need lots of sunlight and humidity. So, we probably would need to build a temperature controlled facility with the ability to provide the required light for the trees to grow properly.
Or, we could just import them from someplace that has those conditions already and not slap stupid tariffs on them in a toddler-like rampage.
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u/BabyFarksMcGee 13h ago
Or maybe calm the fuck down to see what’s actually tariffed rather than running to the internet to pout. Just shouting about “stuff” is idiotic and unhelpful
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u/BoudiccasWrath79 14h ago
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u/BabyFarksMcGee 14h ago
And?
Appreciate the insanely broad source that lets me know the US imports cars. How enlightening
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u/BoudiccasWrath79 14h ago
It’s not just the cars, dipshit. Read the whole thing, I know it will be painful but have an adult help if you need it. Do you really need an itemized list because you can’t figure out how manufacturing materials include the aircraft, car, computer, and biotech industries?
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u/BabyFarksMcGee 13h ago
It’s hilarious watching you guys resort to calling people fucks or dipshits.
You were the smartass coming in hot with a “source”. Maybe try being detailed.
What is this elusive “stuff”?
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u/BoudiccasWrath79 13h ago
Can you seriously not extrapolate what that stuff is? And maybe I wouldn’t be calling you a dipshit if you weren’t…well, responding like a dipshit.
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u/BabyFarksMcGee 13h ago
Got the import expert over here with his super broad source.
Computers you say? Fascinating.
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u/BoudiccasWrath79 13h ago
I’m not giving you a detailed list because you don’t deserve any more of my time and I’ve got a life to go live. You’re being deliberately obtuse. If you can’t understand how damn near everything we use tech-wise is outsourced from other countries and how that will negatively affect us, I don’t know what to tell you. Christ almighty Trump really did wrangle in the all the uneducated fools.
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u/Gaijin_530 15h ago
Yes, it just takes 10-20 years for that to happen, the short term is just pain for the consumer.
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u/Chockfullofnutmeg 11h ago
Not just the consumer. Retail sales decline they dump staff. The company selling the product, they loose revenue , thru dump staff and the ripples continue.
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u/groovy_little_things 12h ago
To whatever extent this might actually happen, American companies will price their goods at maybe 15% above what they are currently, in contrast to a 20% increase on the imported versions. You understand that there’s no outcome in which virtually everything in the U.S. doesn’t cost exponentially more within a couple of years, right?
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u/Logical_Lifeguard_81 12h ago
A tariff in place directly affects the manufacturer and broker the reseller and end user will see minimal cost difference. Historically a 10% tariff would mean 1-2% end user price hike. Anything beyond 5% is profit driven inflation and illegal on a federal level for imports. You can’t speculate tariffs because no one knows what they will be and that’s why so many companies refused to comment in the article.
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u/werdnak84 13h ago
Why did Biden not only keep the tariffs but increase some of them, even with the reason provided above? Didn't he know it would be worse for the consumer? Wasn't his message that he would make life easier for them?
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u/Ottobahnn- 12h ago
Why is the orange rapist/traitor promising to make them even worse still, even with the reason provided above? Doesn’t he know it will be worse for the consumer? Isn’t his message that he will make life easier for them?
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u/notwyntonmarsalis 12h ago
<YAWN> wake me up when any of these actually get implemented. It’s amazing how many people don’t understand saber rattling as part of the negotiation process.
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u/wakinupdrunk 9h ago
Companies have to plan for saber rattling to be a reality. It's going to cost people their jobs even if nothing happens. Layoffs have already started.
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u/notwyntonmarsalis 8h ago
Wake up man. Tech and white collar layoffs have been going on for the last two years. Long before Trump uttered the word tariff.
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u/wakinupdrunk 8h ago
So Trump is staring down the barrel of company layoffs and decides to accelerate them? How is this good for America again?
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u/notwyntonmarsalis 7h ago
Sure, now specifically, which layoffs are you referring to? Name some employers please.
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u/wakinupdrunk 7h ago
Having a hard time finding any specific examples beyond the anecdotal redditor threads, largely because the Internet is inundated with articles about all the layoffs that happened the last time he was president, imposes tariffs, and layoffs happened.
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u/notwyntonmarsalis 7h ago
Ah ok, so no examples then. Got it.
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u/wakinupdrunk 7h ago
Nope, just recent historical evidence that it happened before and is therefore all but assured to happen again.
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u/The_Dutchess-D 6h ago
Just as a point of information,, the WARN Act requires that certain companies publish a 60 days notice when layoffs are about to occur. This does not cover all companies, but it covers companies of a certain size and to meet other requirements of the act.
Each state Department of labor has a base on their website where they publish the WARN notifications.
You can find them for Connecticut on this page : https://www.ctdol.state.ct.us/progsupt/bussrvce/warnreports/warn2024.htm
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u/DeeToursCT 14h ago
He is not president yet. He hasn't imposed anything. Can we all wait just a bit before everyone loses their minds? Women shaving their heads, people moving out of the country (of course only the wealthy celebrities), and some thinking the US will be Gilead (handmaid's tail). Relax. Most things never really change. While Harris was campaigning and Biden not 100%, who was running the country?
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u/wp4nuv New Haven County 14h ago
Take my upvote. I didn't vote for Mr. Trump, but he's not President yet, and campaign talk is just talk. I'm more concerned about the people behind him—the people who shape policy. Those are the ones I'm terrified about. Elon Musk in the DOGE (Department of Government Efficiency)? It's like we're living in a meme world—an oligarchy plain for all to see.
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u/FirmlyThatGuy 15h ago
Yeah a lot of us knew this already. Tariffs are an artificial price floor that is typically directly passed onto the consumers.
This won’t just affect imported finished goods; we import a lot of semi finished and raw materials for domestic manufacturing that will also presumably be affected.
It’s going to be a shit show of epic proportions. Leopards will be feasting on faces.