US businesses brace for more pain as ‘Liberation Day’ tariffs loom

Businesses around the world are keenly watching for details on U.S. President Donald Trump's sweeping new reciprocal tariffs on trading partners, the latest in a series of extensive duties imposed since his return to the White House earlier this year.

The fresh duties are expected to take effect immediately after Trump announces them at a ceremony at 4 p.m. Eastern Time (2000 GMT) on Wednesday, labeled "Liberation Day".

The threatened levies could be particularly damaging for U.S. companies in sectors already slapped with the duties, with administration officials saying all of Trump's tariffs, including prior rates, are stacking.

The following U.S. business sectors are likely most exposed to Trump's reciprocal tariffs:

AUTOS & ELECTRIC VEHICLES

Trump announced 25% tariffs on auto imports last week on all cars and parts made outside the U.S. These duties will go into effect on Wednesday.

The Detroit Three automakers - Ford, General Motors and Stellantis - have a much bigger exposure to manufacturing outside of the U.S. vis-à-vis Elon Musk's Tesla, and face a bigger hit.

CHIPS

Trump said in February he intends to impose tariffs of around 25% on the imports of semiconductors and related products.

U.S. chip companies and artificial intelligence networking equipment makers have complex and diverse supply chains spanning multiple countries, with executives saying the near term fallout from any tariffs will be "uncertain."

Industry heavyweight Nvidia's CEO has said the company plans to move manufacturing domestically in response to higher tariffs but expects little short-term impact.

PHARMACEUTICALS

Pharmaceutical products, long spared from trade wars due to the potential harm, also faces Trump's 25% tariff threat, especially those from the EU.

His move to increase tariffs on goods from China, including finished drugs and raw ingredients, as well as an initial round of tariffs between the U.S. and EU on goods such as steel and bourbon, has raised expectations medicines will join the list.

Reuters reported on April 1 that drugmakers are lobbying Trump to phase in tariffs on imported pharmaceutical products in hopes of reducing the sting from the charges and to allow time to shift manufacturing.

PC MAKERS

PC makers such as Dell face the risk of potential price increases driven by the tariffs on China.

Dell said in February it was reviewing the tariff orders, adding the announcements have not yet impacted its pricing. Research firm International Data Corporation lowered its traditional PC forecast for 2025 and beyond in February due to tariff-related risks.

RETAIL & E-COMMERCE

Walmart, Target, Best Buy and several other U.S. retailers have been bracing for a likely hit from the tariffs, especially on key supplier China. The companies have been piling the pressure on suppliers over prices on categories ranging from toys to cake pans.

If tariffs on Vietnam go into effect, apparel and sportswear makers from Nike to On Holding are expected to see an impact, as they source about half of their products from the country.

Alcohol makers -- including Brown-Forman , Diageo, Anheuser-Busch, Constellation Brands, Molson Coors Beverage -- have also been caught in the cross-fire, following the tariffs on goods from Canada, Mexico and China imposed in February.

Separately, any disruption to a trade loophole called "de minimis", which allows goods valued at less than $800 to enter the U.S. duty-free and with minimal inspections, will hit discount-price online retailers as well.

E-commerce players like Shein, PDD Holdings-owned Temu and Alibaba's AliExpress all rely on the de minimis exemption to keep prices low.

ENERGY & RESOURCES

Uranium prices for U.S. companies could rise by 10% if tariffs are implemented, said Canadian uranium miner and producer Cameco, weighing heavily on the country that relies primarily on imports of the ore.

U.S. retail gasoline prices are set to climb as the latest levies could raise the cost of energy imports, according to traders and analysts.

BANKS

The industry was expected to benefit from the Republican Party's sweeping election victory in November, with investment banks anticipating a rise in dealmaking and capital markets activity.

However, economic uncertainty - partly driven by tariffs - has dampened that optimism.

The KBW Regional Banking Index has fallen nearly 7%. Profit estimates are at risk as uncertainty curbs sentiment and prompts businesses to adopt a wait-and-see approach, analysts at Raymond James warned in a note on Tuesday.