Trump's New 2025 Tariff Policy Sparks Global Business Community Backlash: Emerging Inflation Risks and Logistics Crisis

U.S. President Donald Trump initiated a global reciprocal tariff policy on April 9, 2025, imposing at least a 10% tariff on imported goods, with tariffs on Chinese goods reaching as high as 104%. This move has triggered global market turmoil, with Wall Street business leaders, such as JPMorgan Chase CEO Jamie Dimon, opposing it and warning of risks such as inflation and investment stagnation. Taiwanese companies are facing challenges like having their export containers rejected. The UK, Japan, Vietnam, India, and Cambodia might quickly reach tariff agreements, which could potentially benefit companies like Nike.

Wall Street Leaders Unanimously Oppose: Concerns Over Inflation and Investment Stagnation

The global tariff policy announced by the Trump administration has immediately sparked strong backlash from the top echelons of the American business community. JPMorgan Chase CEO Jamie Dimon pointed out in a letter to shareholders that tariffs will drive up prices, exacerbate inflation, and could lead to a slowdown in economic growth. He warned that the U.S. might return to the era of "stagflation" of the 1970s, a combination of stagnation and inflation, which would make it difficult for the Federal Reserve to stimulate the economy through interest rate cuts.

Hedge fund giant Bill Ackman described the move as an "economic catastrophe," urging Trump to establish a 90-day cooling-off period to delay the implementation of tariffs. He noted that without a pause, corporate investment would come to a halt, consumer spending would tighten, and the U.S.'s international reputation would take a hit.

Other heavyweight investors like Stanley Druckenmiller, Ken Fisher, and Elon Musk have also expressed opposition. Musk further called for the establishment of a "zero-tariff free trade zone" between the U.S. and Europe, indicating that even Trump's allies have doubts about the policy. This zone would eliminate tariffs between the two regions, promoting free trade.

Investment and Market Confidence Shaken

Simon MacAdam, Deputy Chief Economist at consultancy Capital Economics, pointed out that the uncertainty of tariff policies will make companies hesitant to invest. "If tariffs are going to be renegotiated and reduced in a few months, investing hundreds of millions of dollars in new factories in the U.S. now could be a waste," he said.

The market reaction has also quickly reflected the shaken confidence of investors. Since the policy announcement, the S&P 500 and Nasdaq indices have fallen by more than 15% and 21%, respectively, with European and Asian stock markets also plummeting in tandem.

Taiwanese Businesses Face "Stranded Containers" and Logistical Chaos

For Taiwanese companies, Trump's decision to impose a 32% tariff on Taiwan has had a substantial impact. Logistics operators have noted that more than half of importers have delayed shipments, waiting to see how the policy unfolds. I Got Space founder David Lee stated that many Taiwanese businesses are worried about containers being rejected at sea, creating a "stranded containers" issue.

Ding Kunhua, Chairman of Tianjin Kaihua United Finance, pointed out that traditional Free on Board (FOB) terms are no longer applicable in a high-tariff environment, and future transactions will shift to Cost, Insurance, and Freight (CIF) terms, which means sellers will bear higher risks. Yuan Mingren, General Manager of Huaxin Tongling Management, warned that if customers refuse to accept goods, it will lead to numerous commercial disputes, especially for small and medium-sized enterprises, putting even more pressure on cash flow.

UK, Japan, Vietnam, India, and Cambodia Likely to Reach Agreements First

Despite the turbulent global trade situation, investment bank Jefferies pointed out that the UK, Japan, Vietnam, India, and Cambodia are the five countries most likely to quickly reach tariff agreements with the U.S. The White House also confirmed that as many as 70 countries have expressed willingness to negotiate.

These countries have close supply chain relationships with U.S. companies, and reaching agreements would help stabilize certain industry supply chains and cost structures. For example, Boeing has manufacturing or sales bases in the UK, Japan, and India, Amazon derives about 6% of its revenue from the UK and 4.3% from Japan, and solar company First Solar's production capacity in Vietnam and India accounts for 30%.

Companies Like Nike May Be the Biggest Beneficiaries

Brands like Nike, VF, Tapestry, and Abercrombie & Fitch, with supply chains deeply rooted in Vietnam and Cambodia, could avoid high tariffs if these two countries reach agreements with the U.S., becoming potential beneficiaries. Last year, over 50% of Nike's footwear products were manufactured in Vietnam, and the company is expanding its apparel production scale.

Additionally, Gap and Macy's have significant procurement in India, and successful negotiations by India would help these brands maintain cost competitiveness.

Trump's New 2025 Tariff Policy Sparks Global Business Community Backlash: Emerging Inflation Risks and Logistics Crisis

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