Trump’s tariff push is a race against time, and potential voter backlash

WASHINGTON (AP) — President Donald Trump's expansive new tariffs reverse a decades-long global trend of lower trade barriers and are likely, economists say, to raise prices for Americans by thousands of dollars each year while sharply slowing the U.S. economy.

The White House is gambling that other countries will also suffer enough pain that they will open up their economies to more American exports, leading to negotiations that would reduce the tariffs imposed Wednesday.

Or, the White House hopes, companies will reverse their moves toward global supply chains and bring more production to the United States to avoid higher import taxes.

But a key question for the Trump administration will be how Americans react to the tariffs. If prices rise noticeably and jobs are lost, voters could turn against the duties and make it harder to keep them in place for the time needed to encourage companies to return to the U.S.

The Yale Budget Lab estimates the Trump administration's tariffs would cost the average household $3,800 in higher prices this year. That includes the 10% universal tariff plus much higher tariffs on about 60 countries announced Wednesday, as well as previous import taxes on steel, aluminum and cars. Inflation could top 4% this year, from 2.8% currently, while the economy may barely grow, according to estimates by Nationwide Financial.

Investors turned thumbs-down on the new duties Thursday, with the S&P 500 index dropping 4.8% at the close of trading, its worst day since the pandemic. The Dow Jones Industrial Average plunged more than 1,600 points.

Still, Trump was upbeat Thursday when asked about the stock market drop.

“I think it’s going very well,” he said. “We have an operation, like when a patient gets operated on and it’s a big thing. I said this would exactly be the way it is."

The average U.S. tariff could rise to nearly 25% when the tariffs are fully implemented April 9, economists estimate, higher than in more than a century, and higher than the 1930 Smoot-Hawley tariffs that are widely blamed for worsening the Great Depression.

“The president just announced the de facto separation of the U.S. economy from the global economy,” said Mary Lovely, senior fellow at the Peterson Institute for International Economics. “The stage is set for higher prices and slower growth over the long term."

Commerce Secretary Howard Lutnick argued the policies will help open markets overseas for U.S. exports.

“I expect most countries to start to really examine their trade policy towards the United States of America, and stop picking on us,” he said on CNBC Thursday. ”This is the reordering of fair trade.”

Bob Lehmann, 73, who stopped by a Best Buy in Portland, Oregon, Wednesday opposed the tariffs. “They’re going to raise prices and cause people to pay more for daily living,” he said.

Mathew Hall, a 64-year-old paint contractor, called the tariffs a “great idea” and said potential price increases in the short term were worth it.

“I believe in the long term, it’s going to be good,” he said, adding that he felt the U.S. had been taken advantage of.

But a former trade official from Trump’s first term, speaking on condition of anonymity to talk candidly about the impact, suggested that Americans, including those who voted for Trump, may have difficulty accepting the stiff duties.

Americans “have never faced tariffs like this,” the former official said Thursday. “The downstream impact on clothing and shoe stores, it’s going to be pretty significant. So we’ll have to see how the Trump voters view this ... and how long their support for these policies goes.”

On Thursday, automaker Stellantis, which owns the Jeep, Citroen and Ram brands, said it would temporarily halt production at plants in Canada and Mexico in response to Trump's 25% tax on imported cars. The reduced output means the company is temporarily laying off 900 workers at plants in Michigan and Indiana.

Some exporters overseas may cut their prices to offset some of the tariffs, and U.S. retailers could eat some of the cost as well. But most economists expect much of the tariffs to bring higher prices.

The tariffs will hit many Asian countries hard, with duties on Vietnamese imports rising to 46% and on Indonesia to 32%. Tariffs on some Chinese imports will be as high as 79%. Those three countries are the top sources of U.S. shoe imports, with Nike making about half its shoes last year and one-third of its clothes in Vietnam.

The Yale Budget Lab estimates all Trump’s tariffs this year will push clothing prices 17% higher.

On Thursday, the Home Furnishings Association, which represents more than 13,000 U.S. furniture stores, predicted the tariffs will increase prices between 10% and 46%. Vietnam and China are the top furniture exporters to the U.S.

It said manufacturers in Asia are offsetting some of the costs by discounting their products and lowering ocean freight rates, but that won't be enough to avoid price hikes. Even domestically made furniture often relies on imported components.

“While many in the industry support the long-term goal of reshoring manufacturing, the reality is that it will take at least a decade to scale domestic production,” Home Furnishings Association CEO Shannon Williams said in a statement. “Permitting, training a skilled workforce and managing the higher costs of U.S. manufacturing are significant hurdles.”

At Gethsemane Garden Center in Chicago, there are Canadian-grown tulip, daffodil and hyacinth bulbs, though only about 5% of center plants are imported. Thousands of lemon cypress trees from Canada are sold year-round and Canadian mums are sold in the fall.

Regas Chefas, whose family has owned Gethsemane for decades, says all the tariffs won't be passed onto customers.

“We’re going to absorb some of the increase. The growers will absorb some of the increases and then the customers will pay a little bit higher price,” he said.

The Consumer Brands Association, which represents Coca-Cola, General Mills, Nestle, Tyson and Del Monte as well as Procter & Gamble and Colgate-Palmolive, said its companies already make the majority of their goods in the U.S.

But there are critical ingredients and inputs — like wood pulp for toilet paper — that are imported because of scarce domestic availability. Cinnamon is harvested from trees that can’t survive in the U.S.. Domestic production of coffee and cocoa is also limited.

“We encourage President Trump and his trade advisers to fine-tune their approach and exempt key ingredients and inputs in order to protect manufacturing jobs and prevent unnecessary inflation at the grocery store,” said Tom Madrecki, the association’s vice president of supply chain resiliency.

Outside a Tractor Supply south of Denver, two family members on opposite sides of the political spectrum debated the tariffs.

Chris Theisen, a 62-year-old Republican, said: “I feel a good change coming on, I feel it’s going to be hard, but you don’t go to the gym and walk away and say, ’God, I feel great.”

Nayen Shakya, a Democrat and Theisen’s great nephew, said higher prices are already a hardship. At the restaurant where he works, menu prices have been raised to account for higher ingredient costs.

“It’s really easy sometimes to say some things in a vague way that everyone can agree with that is definitely more complex under the surface,” said Shakya. "The burden of the increased prices is already going to the consumer.”

Listening to his nephew, Theisen added: “I understand this side of it, too."

“I ain’t got no crystal ball. I hope it works out good.”

AP Writers Paul Wiseman, Jesse Bedayn, Dee-Ann Durbin, and Claire Rush contributed to this report. Rush reported from Portland, Durbin from Detroit, and Bedayn from Colorado. AP Photographer Erin Hooley contributed from Chicago.

Manager Andrew Balfe, left, helps a customer at Gethsemane Garden Center, Thursday, April 3, 2025, in Chicago. (AP Photo/Erin Hooley)

Employee Lauren Owen holds Azaleas imported from Canada for sale at Gethsemane Garden Center, Thursday, April 3, 2025, in Chicago. (AP Photo/Erin Hooley)

Employee Lauren Owen points out a variety of flowers imported from Canada for sale at Gethsemane Garden Center, Thursday, April 3, 2025, in Chicago. (AP Photo/Erin Hooley)

A shopping cart filled with groceries sits in an aisle at an Asian grocery store in Rowland Heights, Calif., Thursday, April 3, 2025. (AP Photo/Jae C. Hong)

A woman walks past Chinese and United States' national flags on display at a merchandise store in Beijing, Thursday, April 3, 2025. (AP Photo/Andy Wong)

A worker displays textiles in the fashion district Thursday, April 3, 2025, in Los Angeles. (AP Photo/Damian Dovarganes)

Cars line the BNSF Railway vehicle storage facility at the Port of Richmond on Thursday, April 3, 2025, in Richmond, Calif. (AP Photo/Noah Berger)

President Donald Trump waves as he arrives on Air Force One at Miami International Airport, Thursday, April 3, 2025, in Miami. (AP Photo/Rebecca Blackwell)

Containers are stacked at the Port of Los Angeles Wednesday, April 2, 2025, in Los Angeles. (AP Photo/Damian Dovarganes)

Cargo containers line a shipping terminal at the Port of Oakland on Thursday, April 3, 2025, in Oakland, Calif. (AP Photo/Noah Berger)

Bags of rice imported from Vietnam are displayed at an Asian grocery market in Rowland Heights, Calif., Thursday, April 3, 2025. (AP Photo/Jae C. Hong)

Boxes of mangos imported from Mexico and Korean pears are displayed at an Asian grocery market in Rowland Heights, Calif., Thursday, April 3, 2025. (AP Photo/Jae C. Hong)

A woman shops at an Asian grocery market in Rowland Heights, Calif., Thursday, April 3, 2025. (AP Photo/Jae C. Hong)

Textiles are displayed in the fashion district Thursday, April 3, 2025, in Los Angeles. (AP Photo/Damian Dovarganes)

Bobby Charmak works on the floor at the New York Stock Exchange in New York, Thursday, April 3, 2025. (AP Photo/Seth Wenig)

Mike Pistillo Jr., center, works with other traders on the floor at the New York Stock Exchange in New York, Thursday, April 3, 2025. (AP Photo/Seth Wenig)

Employee Jon Vazquez-DeAnda cuts keys for a customer at employee-owned Devon Hardware, Wednesday, April 2, 2025, in Chicago. (AP Photo/Erin Hooley)

A cluster of tomatoes grown in Canada rest on a kitchen counter of a home, Tuesday April 1, 2025, in East Derry, N.H. (AP Photo/Charles Krupa)

Stacks of lumber are set up on shelves at a local Lowes store Tuesday, April 1, 2025, in Tempe, Ariz. (AP Photo/Ross D. Franklin)

TRIESTE, Italy & MILAN, Italy--(BUSINESS WIRE)--Apr 10, 2025--

Fincantieri, a global leader in complex shipbuilding, and Accenture (NYSE: ACN), one of the world’s leading professional services companies, have signed an agreement to establish Fincantieri Ingenium, a new joint venture. The company will be owned 70% by Fincantieri NexTech—a subsidiary of the Fincantieri Group—and 30% by Accenture. The initiative stems from a Memorandum of Understanding signed in July 2024 and combines Fincantieri’s technological expertise in the naval sector with Accenture’s advanced digital capabilities and digital engineering and manufacturing expertise.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20250410805533/en/

Fincantieri Ingenium has been created to accelerate digital transformation across the cruise, defense, and port infrastructure sectors. It will play a key role in executing the strategy outlined in Fincantieri Group’s Industrial Plan. The goal is to enhance the offering of digital services and systems based on recent advances in technologies such as artificial intelligence by optimizing the entire value chain through data utilization and process transformation.

The joint venture will integrate Accenture’s extensive experience in digital platforms, AI, connectivity and IoT, cybersecurity, and service design with Fincantieri’s deep technological know-how in the naval and defense industries. This powerful combination will enable the development of new technological capabilities and skills, while also attracting and training new talent.

Among the first strategic initiatives of the new company is the development of Navis Sapiens, a digital ecosystem designed for next-generation ships and the upgrade of existing fleets. The project spans three key dimensions: the creation of a portfolio of application services to optimize operational efficiency and lifecycle management for ships and onshore infrastructure; the development of a digital platform enabling these applications and advanced AI-driven functionalities, with a strong focus on cybersecurity; and a marketplace to facilitate the exchange of solutions—including those from third parties—to deliver high value-added services and enable new business models across the maritime ecosystem. The first ship equipped with Navis Sapiens is expected to enter service by the end of 2025.

In synergy with Navis Sapiens, the joint venture also plans to enhance real-time data exchange and connectivity between ships and onshore ecosystems—including ports and shipyards—through a sea-to-shoreinteroperability solution to increase cross-functional process efficiency. This project will help improve the competitiveness of Italian ports by optimizing performance across the entire maritime and land-based value chain. All initiatives will be promoted with sustainability as a core pillar. The systems will be designed to reduce environmental impact through data-driven energy optimization, supporting shipowners in reducing fuel consumption. The initiatives already underway, as well as those to come, will generate significant value for Fincantieri, the national maritime ecosystem, and the country as a whole, with a positive impact on a global scale.

Pierroberto Folgiero, CEO and General Manager of Fincantieri, said: "With Fincantieri Ingenium, we strengthen our leadership position in technological innovation applied to shipbuilding and the naval engineering industry. This joint venture represents a strategic step forward in accelerating the digitalization of the sector, leveraging artificial intelligence and the most advanced technologies. Thanks to the synergy with Accenture, we will develop cutting-edge solutions that will make our ships and infrastructures increasingly connected, efficient and sustainable, consolidating Fincantieri's role as a global leader in the sector."

Teodoro Lio, MU Lead for ICEG and CEO of Accenture Italy, commented: “We are excited about this joint venture with Fincantieri, which marks a significant step forward in maritime innovation and is a tangible example of collaboration between two organizations committed to transforming the market and creating new value. With Fincantieri Ingenium, we are combining our respective strengths to shape new operating models that will transform maritime operations through innovative technologies.”

The project is subject to customary conditions precedents related to regulatory compliance .

About Fincantieri
Fincantieri is one of the world’s largest shipbuilding groups, the only one active in all high-tech marine industry sectors. It is leader in the construction and transformation of cruise, naval and oil & gas and wind offshore vessels, as well as in the production of systems and component equipment, after-sales services and marine interiors solutions. Thanks to the expertise developed in the management of complex projects, the Group boasts first-class references in infrastructures, and is a reference player in digital technologies and cybersecurity, electronics and advanced systems. With over 230 years of history and more than 7,000 ships built, Fincantieri maintains its know-how, expertise and management centres in Italy, here employing over 11,000 workers and creating around 90,000 jobs, which double worldwide thanks to a production network of 18 shipyards operating worldwide and with over 22,000 employees.
www.fincantieri.com

About Accenture
Accenture is a leading global professional services company that helps the world’s leading businesses, governments and other organizations build their digital core, optimize their operations, accelerate revenue growth and enhance citizen services—creating tangible value at speed and scale. We are a talent- and innovation-led company with approximately 801,000 people serving clients in more than 120 countries. Technology is at the core of change today, and we are one of the world’s leaders in helping drive that change, with strong ecosystem relationships. We combine our strength in technology and leadership in cloud, data and AI with unmatched industry experience, functional expertise and global delivery capability. Our broad range of services, solutions and assets across Strategy & Consulting, Technology, Operations, Industry X and Song, together with our culture of shared success and commitment to creating 360° value, enable us to help our clients reinvent and build trusted, lasting relationships. We measure our success by the 360° value we create for our clients, each other, our shareholders, partners and communities. Visit us at accenture.com

Fincantieri, a global leader in complex shipbuilding, and Accenture, one of the world’s leading professional services companies, have signed an agreement to establish Fincantieri Ingenium, a new joint venture.