‘It's awful’: How tariffs, soaring fuel costs and higher interest rates are squeezing American companies - CNBC
American companies, particularly middle-market manufacturers, are facing a severe 'three-way squeeze' from tariffs, surging fuel prices due to the Iran war, and rising interest rates. This combination is increasing costs for raw materials, transportation, and financing, forcing businesses to hoard inventory, raise prices, and potentially face bankruptcy.
Why it matters
This economic pressure on businesses contributes to persistent inflation and could lead to job losses, reduced investment, and a slowdown in economic growth, impacting consumers and the broader economy.
Fewer, pricier flights. Freight surcharges. Manufacturers hoarding inventory. Even bankruptcy.
For American companies large and small, the combination of tariffs imposed under President Donald Trump 's trade policies, surging fuel prices from the Iran war and, now, rising interest rates is forcing executives to make tough choices.
Allen Eden has been holding onto extra inventory for his 25-person business, the Original Saw Co. in Britt, Iowa, which makes industrial power saws for wood and metalwork, as he grapples with spiking prices for aluminum, steel and essential parts.
One example: A "little bracket" used for his saw motors more than doubled in price this summer, surging to $87 from $42, he said.
"It's awful," Eden, 56, told CNBC. "[I'm] just trying to keep more of the stuff around because I don't know if we can get it down the road."
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