The ongoing trade tensions between the US and China under President Donald Trump’s administration have raised concerns about the potential impact on various US companies. Trump’s protectionist agenda, aimed at reviving US industry, has led to a 90-day pause on reciprocal tariffs, with import taxes increasing to 145 percent on Chinese goods. This move has sparked fears of a trade war, which could severely affect US businesses that rely heavily on Chinese imports and exports.
The technology sector is particularly vulnerable, with companies like Apple and Nvidia receiving temporary exemptions from Trump’s tariffs. Apple outsources most of its assembly operations to China, while Nvidia relies heavily on components from the country. Bradley Saunders, a North America analyst at Capital Economics, warned that new tariffs could hit US technology sectors “hard”. The previous trade war between the US and China from 2018 to 2019 resulted in billions of dollars of lost revenue for American farmers, and Saunders noted that the agriculture industry tends to lose out in trade wars.¹ ²
The soybean sector is expected to be significantly impacted, as China is its largest export market. When Trump imposed tariffs on Chinese goods, Beijing retaliated by buying soybeans from Brazil and imposing retaliatory tariffs five times higher. The American Soybean Association has opposed Trump’s tariffs on China, warning that many soybean farmers could go out of business if the trade war continues. With over 500,000 soybean producers in the US, according to the Department of Agriculture’s Census of Agriculture, and 223,000 full-time jobs dependent on the industry, the potential consequences are substantial. Companies like Cargill, Archer Daniels Midland, and Tyson Foods are likely to lose export earnings from China.
The textile and apparel industry is also expected to feel the effects, with companies like Nike, Levi, and Gap facing increased costs due to tariffs on Asian factory hubs. In 2024, factories in China, Vietnam, and Indonesia made 95 percent of Nike footwear. Trump’s 145 percent tariffs on China, compared to 10 percent tariffs on Vietnam and Indonesia, could further exacerbate the situation.
According to Yale Budget Lab, the tariffs could cause up to 740,000 people to lose jobs by 2025, leading to higher inflation and lower business output. As the trade war escalates, US companies will likely pass on the increased costs to consumers to preserve profit margins, potentially resulting in decreased demand and further economic strain.
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