Abandon Ship! Will Trump's Tariffs Leave Businesses Adrift?

Another Beautiful Day in the Corps... I Mean the Economy

Alright people listen up. This is Ripley last survivor of the Nostromo. And I've seen some things believe me. Facehuggers chestbursters the whole damn xenomorph family reunion. But this new economic mess? It's got that same nasty feeling – like something's about to burst out and ruin everyone's day. Apparently this Trump character has cranked up the tariffs again. Tariffs! It's like adding acid to the fuel... the company (in this case the entire economy) is gonna blow!

Abandon All Hope Ye Who Enter Port

So get this. Businesses are telling CNBC that these tariffs are so high they might just abandon their shipments at the docks. Abandon them! It's like watching the Sulaco drift off into space knowing Hicks and Newt are still on board. Rick Muskat this poor guy from Deer Stags shoes says his costs are through the roof. He used to pay 6% duty now he's staring down the barrel of 110% on non leather shoes and 120% on leather! How do you budget that? I ask you! It's like trying to plan a colony on LV 426 without knowing the local wildlife.

Cash Flow? More Like Cash Overflow... Right Into the Government's Pockets

Muskat's worried about cash flow says he doesn't have the capital to deal with this. No kidding! It's like trying to fight a xenomorph with a rusty pipe wrench. He's even told one factory to hit the pause button on shipping which is probably a smart move. Can't pay the import tariffs the goods sit at the docks. You pay detention charges. If that isn't a “lose lose” situation I do not know what is.

The Only Way to Be Sure... Is to Wait and See?

Of course Trump threw another wrench into the gears saying some countries get a 90 day pass on the tariffs. But China? Oh no they get hit with even HIGHER tariffs! Joseph Esteves from Maine Pointe says shippers are thinking about just ditching their freight. Who can blame them? It's like trying to navigate a derelict spaceship full of facehuggers. No one knows what's gonna happen next. He says companies don't have the liquidity to do that and balance sheets and cash levels were more sensitive to major changes in costs. Well maybe you should of thought of that first.

Houston We Have a Manufacturing Problem

Bruce Kaminstein some angel investor guy knows the challenges of making stuff in China. He warns that startups don't have the deep pockets to survive this mess. "Products will be left in containers because retailers won't take them," he says. It's like watching the colony on LV 426 get overrun – a slow motion disaster you can't do anything about. And even if you wanted to bring manufacturing back to the US guess what? "There are no factories here in the United States making products for other brands." Fantastic.

Hope is Not a Strategy... But What Choice Do We Have?

So what now? Mary Rollman from KPMG says companies are trying to figure out the cost of moving their supply chains which takes years by the way. The Small Business Administration (SBA) is trying to tell everyone that Trump's plan will help US businesses. Sure it will. Just like Burke promised us everything was fine on LV 426. Muskat says retailers are trying to figure out what to do. "Hope is not a strategy," he says "but most people are hoping Trump and Xi will talk." Tariffs will effect goods that consumers buy every day; clothes bananas and coffee and that will “ripple through the economy”. I guess all we can do is strap in hold on tight and pray this doesn't end like the Nostromo.