In 2018, President Donald Trump introduced a wave of tariffs on goods imported from other countries, mainly China, claiming it would strengthen U.S. companies. Just a few months into his second term, he is expanding that strategy. Tariffs serve a strategic purpose in many global trade negotiations, but Trump’s latest blanket increase proposal is projected to increase inflation, decrease economic growth, hurt our workers and increase cost. Although part of Trump’s full tariff plan is currently on pause for 90 days in most countries, if the full tariff plan goes through, it will make life in New York — where the cost of living is extremely high and 25% live in poverty — much harder.
Tariffs are alarmingly misunderstood in the United States. Just after the election, the question “who pays for tariffs” spiked in Google searches. Many — including Trump himself — seem to think that tariffs will be paid by the countries exporting goods into the country. But in reality, tariffs are paid by the importer and almost always passed onto the consumer, meaning everyday Americans will bear the costs.
We’ve seen the consequences of these reckless tariffs before, and they can be devastating. A 2019 New York Federal study found that Trump’s first round of tariffs cost the average American household nearly an extra $1,000 a year. But as he raises tariffs this time around, the stakes rise, too.
Already, residents from SoHo to Red Hook have rushed to stock up electronics, appliances and groceries before they get even more expensive. Wall Street has been hit especially hard, with the Dow Jones Industrial Average and S&P 500 falling sharply as news of the new tariffs spread, sending the markets into turmoil. Even after Trump announced the 90-day pause on some tariffs, experts warned the damage was already done: Key securities businesses are now paralyzed by uncertainty, and when Wall Street slows down, so does New York City. The financial sector makes up more than 20% of the city’s total income and a similar share of state tax revenue. When investment firms cut back or lay off workers, it means less money for public schools, housing programs, transit systems and other basic services that millions of New Yorkers rely on.
Small businesses across New York City are bracing for impact. Top 3! Games — a Harlem-based startup that produces trivia card games — for example, is anxiously awaiting a shipment from China that was originally supposed to cost $9,000. With Trump’s new tariffs on Chinese goods now as high as 125%, that same shipment could skyrocket in cost before it even reaches the port. Founder Lyndsey McFail said the company will have no choice but to raise its prices — possibly pushing the price of its $29.99 game beyond what customers are willing to pay. That’s the brutal math small business owners are facing: take the extra cost on themselves or pass it on to consumers and risk losing them altogether. Top 3! Games isn’t alone. Across the five boroughs, many businesses are experiencing similar problems.
According to the Manhattan Chamber of Commerce, 90% of small businesses said they’re worried about the impact of the tariffs — not just because of immediate price hikes, but because of the unpredictability that they introduce that makes it impossible to plan ahead. Wholesalers are scrambling to adjust, retailers are being hit with unexpected surcharges and small business owners are stuck trying to make ends meet.
And it’s not just businesses — workers and families are struggling, too. City Council leaders warn that up to 260,000 jobs could be lost in New York City alone if these tariffs go through. Prices for groceries, electronics and construction materials could skyrocket, deepening the already brutal affordability crisis. Tourism — another pillar of the city’s economy — is showing signs of trouble, with bookings from Canada down and airlines like Delta cutting back revenue estimates.
Trump’s tariffs are essentially the biggest tax hike on working Americans since 1942. New York City Council Speaker Adrienne Adams put it bluntly: If these tariffs go into full effect, “working people will see prices skyrocket for groceries, electronics and other goods while losing their jobs.” This economic hit will hurt our city budget and, by extension, all of us. The city’s upcoming budget negotiations are built on outdated assumptions about tax revenues. Though the council set aside $1.9 billion in emergency reserves to brace for the fallout, it may not be enough. Delayed infrastructure projects, pension fund shortfalls and higher living costs could become our new reality.
New Yorkers shouldn’t be forced to endure a crisis of our own governments’ making. Trump’s reckless tariffs threaten everything that keeps this city running, and it’s time for our leaders, especially those in Congress, to step in and put a stop to Trump’s nonsense.
WSN’s Opinion section strives to publish ideas worth discussing. The views presented in the Opinion section are solely the views of the writer.
Contact Steven Wang at [email protected].
