“Could Make Their Profits Go Poof”: Businesses Brace for Fallout as Trump’s Tariff Plans Spark Inflation and Profit Fears

American businesses are increasingly concerned that President-elect Donald Trump’s plans to impose massive tariffs on foreign-produced goods are not just political bluster but a looming reality. Axios reports that companies are beginning to recognize the serious financial risks tied to Trump’s proposed trade policies, which could have devastating impacts on profits and spark a resurgence of inflation.

In recent weeks, business leaders have sought to align themselves more closely with Trump, fearing his tariffs “could make their profits go poof,” Axios writes. The concern stems from Trump’s proposals to slap a 25% tariff on all Canadian and Mexican goods and a staggering 60% tariff on all Chinese goods.

An analysis by consulting firm PwC highlights just how severe the fallout could be. According to the report, tariffs of this magnitude “could entirely wipe out the annual profits of some large companies.”

The impact, however, won’t stop at businesses’ bottom lines. To mitigate losses, many companies are expected to pass the additional costs onto consumers, which could lead to sharply rising prices and a resurgence of inflation.

Chris Desmond, a principal at PwC specializing in customs and international trade, emphasized the unprecedented scope of these tariffs. “This is one of the biggest events in my career to impact so many U.S. multinational companies that deal with property imports,” Desmond told Axios.

He pointed out that even products like avocados — which may not be grown in Mexico but pass through the country en route to the United States — could see significant price increases. “That’s messy,” Desmond said, underscoring the complexity of Trump’s proposed trade policies. “There’s a need for guidance.”

The Axios report illustrates the ripple effects of Trump’s tariff proposals: businesses are scrambling to assess risks, profit margins are under threat, and consumers are bracing for higher prices. Should these tariffs be implemented, industries reliant on foreign imports could face enormous financial pressure, creating challenges for the economy as a whole.

While some remain skeptical about whether Trump will follow through, businesses are no longer dismissing the proposals as empty threats. Instead, they are preparing for a future where steep tariffs could disrupt trade, shrinking profits, and drive inflation — a prospect that is quickly reshaping their strategies.