Trade policy has once again become a central force shaping the U.S. economic landscape, making it essential for businesses and policymakers to understand the complex, uneven, and often disruptive real-world consequences of tariffs. At their core, tariffs function as a tax on imports. When imposed on raw materials, components, or finished goods, the immediate cost increase impacts supply chain stability, influencing pricing, production decisions, investment planning, and, ultimately, consumer behavior. For businesses already operating under tight margins, tariff-driven cost increases can quickly become destabilizing. One of the most immediate challenges tariffs create is inflation in input costs. Manufacturers dependent on imported materials must choose between absorbing higher costs, raising prices, or reducing output. Absorbing costs may preserve customer relationships in the short term, but it erodes profitability and weakens balance sheets. Passing costs to consumers risks reducing ...