Tariff Shock 2025: What Every Entrepreneur Needs to Know—For Now

With U.S. trade policy shifting by the minute, here’s what business leaders should watch—before it changes again.

By CSQ Staff / April 21, 2025

In today’s political and economic climate, everything is in motion—especially when it comes to tariffs. The rules of global trade are being redrawn at warp speed, and for entrepreneurs, the implications are enormous. Just this month, the Trump administration announced sweeping new tariffs under its “Liberation Day” framework, impacting nearly every import category—but depending on where and what you import, the effect could vary drastically.

So, let’s break it down. Just know: everything below could be old news by tomorrow.

INDUSTRIES HIT THE HARDEST

Apparel & Footwear

Companies importing from Vietnam, China, and other Southeast Asian nations are now facing tariffs between 25–54%, depending on the country. Brands like Cuts Clothing report a 50%+ cost increase on basic items like T-shirts, forcing them to either absorb the blow or pass the cost onto consumers.

Baby Products

The baby gear industry—including strollers, car seats, and cribs—is reeling under new tariffs ranging from 10% to 145%. With 90% of goods in this category made in Asia, retailers are already seeing price hikes and product shortages.

Steel, Aluminum & Industrial Equipment

Domestic manufacturing that depends on foreign raw materials is now paying 25% more for steel and aluminum. A BCG report estimates $22 billion in added U.S. costs from these tariffs alone—impacting construction, automotive, and infrastructure projects.

Agriculture

China and Mexico have hit back with retaliatory tariffs, targeting U.S. soybeans, pork, and dairy exports. As a result, farmers are experiencing shrinking overseas demand, softening commodity prices, and climbing equipment costs due to higher input tariffs.

INDUSTRIES LARGELY EXEMPT (FOR NOW)

Tech Hardware Made in the Americas

Products made in Mexico, Central America, or domestically are currently insulated from most of the new measures—offering a potential lifeline for companies with nearshore operations.

Beauty & Cosmetics

Cosmetics and skincare products have largely avoided direct hits, especially those sourced from Europe or U.S.-based labs, though this could change depending on how reciprocal tariffs develop.

Pharmaceuticals

Essential drugs and many medical devices remain exempt or lightly taxed, though any broader trade war with India or the EU could bring these under pressure.

EMERGING CONSUMER TRENDS: WORKAROUNDS IN REAL TIME

As tariffs filter down to the consumer level, Americans are responding—sometimes in surprising ways.

Surge in Direct-from-China App Downloads
Apps like Temu and TikTok Shop have seen a spike in U.S. downloads as consumers seek to bypass American retail markups caused by tariffs. These platforms ship products directly from overseas, sometimes via de minimis loopholes that bypass duties under $800—though this threshold is also under political scrutiny.
Recommerce is Rising
Platforms like Poshmark, eBay, and Facebook Marketplace are benefiting from a renewed interest in secondhand goods, as price-conscious consumers look to avoid tariff-driven inflation on new items.
Brand Loyalty Is Breaking Down
Shoppers are trading down—choosing off-brand, private-label, or direct-from-factory goods over trusted U.S. names. This creates both risk and opportunity for brands who can rethink pricing and value propositions.
Shift Toward U.S.-Labeled Products
Consumers looking to “buy American” are increasing demand for products with verified U.S. origin, particularly in categories like tools, food, and home goods. Brands may benefit from leaning into country-of-origin transparency and storytelling.

STATE-LEVEL SNAPSHOTS

Texas: As a top export/import state, Texas is especially vulnerable to tariffs on oil/gas infrastructure and manufacturing. Economic losses could top $3.5 billion, according to local analysts.

California: Governor Gavin Newsom is actively suing to block parts of the tariff law, citing damage to port operations, e-commerce, and small businesses.

Rust Belt States: While some manufacturers are hoping for a resurgence via “Buy American” sentiment, others are facing export losses and supply chain strain. (Axios)

THE ENTREPRENEUR’S PLAYBOOK: 5 MOVES TO MAKE NOW

Know Your Country-of-Origin Dependencies
Double-check supplier nations. Even Vietnam, once a tariff workaround, is now facing heavy penalties.
Audit SKUs for Vulnerabilities
Break down your product costs and flag which components are now tariffed—and by how much.
Shift Suppliers or Nearshore Where Possible
Mexico, Latin America, or even U.S.-based sourcing may be more competitive under the new regime.
Get Legal Help and Stay Engaged
Join trade groups, track cases like Newsom’s lawsuit, and consider filing for exemptions where eligible.
Scenario Plan for Q3/Q4
Don’t assume stability—model out multiple scenarios including increased tariffs, lifted exemptions, or retaliatory measures.