• Small business owners told BI that a 90-day trade deal with China doesn't let them plan confidently.
• Some aren't sure what taxes existing orders will face and feel like they're "gambling."
• The uncertainty of the short window has caused some to pause expansion plans.

When tariffs on Chinese imports dropped from 145% to 30%, Connor Alexander hit print on a new board game that he's publishing. If he's lucky, the game will be ready to ship in 60 days and arrive in the US a couple weeks later.

By that point, tariffs could be back up.

"This pause on the tariffs doesn't really help me. In fact, it just kind of terrifies me, because we're in a situation where 90 days from now is the earliest my stuff could be hitting the port," Alexander, a 54-year old board game publisher in Seattle, Washington, told Business Insider. "If that pause goes back to 145%, if it gets turned off, I'm out of business. I'm done."

Under the most recent trade agreement with China, the US lowered tariffs on Chinese goods to 30%. The agreement lasts for 90 days and it's unclear what will happen after it expires. Kush Desai, a spokesman for the White House, said in a statement that "the Trump administration is committed to restoring American Greatness with an America First economic agenda of negotiating balanced trade deals, cutting regulations, unleashing energy, and streamlining our government."

BI spoke with four small business owners about the new trade deal. They said they're glad that the tariffs were lowered, but that 90 days is not long enough to make decisions confidently — now, business feels like a guessing game.

Racing against the clock

When tariffs were at 145%, Alexander said he'd paused production on two projects for his company Coyote and Crow Games, which produces board and card games that represent the Indigenous community. He decided to green light both games when the trade deal went into effect, partly because he'd already sunk years and money into them.

Yet Alexander isn't sure that he'll be able to take advantage of the new rates, which are significantly higher than before the trade war began.

Under the fastest circumstances, 90 days may not be long enough to get his game that's currently being printed in China to the US, especially with potential shipping delays. He has no idea what taxes he'll end up paying on the game when it arrives.

Haley Pavone, the 29-year-old founder and CEO of Pashion Footwear, which makes convertible heels, called the trade deal "a mix of relief, but also frustration."

"If I could make a shoe in 10 minutes, I'd be stockpiling right now, but they take four months to make and this is only a 90 day reprieve," Pavone said. "It's not enough time to make any kind of change other than continuing to play it safe."

Her summer shoes have arrived and fall products are in production, but she said she hasn't placed her holiday order yet. Pavone said that her fall shoes should arrive in August, but she doesn't know what taxes she'll pay on them.

"It's anyone's guess," she said.

Hugo Ramirez, 42, told BI he typically buys all of his nonperishables from China for Frio Mexican Treats, an ice cream and churro shop in Appleton, Wisconsin that features flavors from his hometown of Chihuahua, Mexico.

When 145% tariffs were in effect he paused all of his orders from China and started buying from US manufacturers instead, but the materials were more expensive and not customized.

For Jessica Kim, the 34-year-old owner of Mycha LA and Chicago, a company that operates vending machines for boba and specialty teas, the 90-day window offered a brief opportunity to receive a shipment, but no chance for long-term planning. She sources all of her vending machines, non-perishables, and a few specialty tea leaves from China.

An order of 10 machines that was meant to arrive in February was delayed and was only ready to be shipped at the end of April. Kim paused the order, though, because of the 145% tariffs in place at the time. When the taxes dropped to 30%, she approved the delivery, and the machines are scheduled to arrive by mid-June.

"I was trying to time it, almost like gambling," she told BI.

'Guessing game'

Alexander told BI he's anticipating a $10 to $20 price hike on his games if tariffs stay at 30%, but he can't accurately predict costs.

"I've already had to tell my customer base, 'I don't know what I'm going to have to charge you in the long run. I'll know when that inventory gets here,'" Alexander said. "I'm taking a chance. I'm gambling on my business."

Pavone said she has no choice but to remain "as cautious and risk-averse as possible," which will likely impact her supply and pricing long-term.

"While we're trying to put that budget together, we're having to play a guessing game of what happens at the end of the 90 days," she said about her holiday order.

Pavone has also been impacted by President Donald Trump closing the de minimis loophole, which allowed shipments under $800 to avoid import taxes.

To cope, she's raised prices on her products and attached a tariff tax to US orders, so consumers can see how much more they're paying. Prices haven't changed for her international customers.

Expansions paused in their tracks

Pavone said she had planned to grow her staff — she had an offer letter out but has rescinded it.

Ramirez said he's also stopped thinking about expansion because it would mean having to buy new machines from China. So far, he said he's managed to keep prices stable on core orders, like a single scoop, but raised the cost of premium items.

He said he doesn't want to play the blame game, and is instead focused on solutions, but he's unsure of the upside of the tariffs.

"If they're going to fix the current markets and help us small businesses grow, I'm all for it," he said of the Trump team. "But as far as what I can see, this is what my experience is."

President Donald Trump is an unlikely member of the "buy nothing" movement — or, at least, buy less.

The president consistently suggests that one effect of his tariffs would be to encourage people to buy fewer things. In the face of price increases and potential shortages, Trump says people can and should make do with less. It's an odd stance coming from any American president, let alone one whose brand is excess. It's also a concept Americans hate. Buying things is our national pastime.

The most striking example of this line of thinking is the president's recent obsession with dolls. "Maybe the children will have two dolls instead of 30 dolls, you know? And maybe the two dolls will cost a couple of bucks more than they would normally," Trump said at a Cabinet meeting in late April. He reiterated the point in a subsequent interview with "Meet the Press" in May. "I don't think that a beautiful baby girl needs — that's 11 years old — needs to have 30 dolls. I think they can have three dolls or four dolls because what we were doing with China was just unbelievable," he said. It's not just dolls that Trump thinks people should cut back on — he's also said kids should have five pencils instead of 250.

Treasury Secretary Scott Bessent brought up the dolls thing as well. In an interview with "The Ingraham Angle" on Fox News, he said he would tell a little girl worried about a Barbie-lite household that "you will have a better life than your parents, that you and your family, thanks to President Trump." She'll have "economic freedom," he added, in exchange for some playtime sacrifice.

The White House has a point in that toys have gotten significantly cheaper in recent decades, leaving many families inundated with them. Many parents would agree that they wouldn't mind accumulating less plastic junk at every birthday, holiday, and trip to Target. At the same time, the doll thing is a little discordant — of all of the items to hold up as the prime example of consumerist excess, a baby doll doesn't immediately spring to mind.

On a broader level, Trump's push for Americans to buy less is a fundamental misread of our culture and economy. Our economy hinges on consumer spending, and cutting back could have serious consequences. On the political side of things, austerity isn't a winning message with the public. In the modern-day American imagination, economic freedom means the freedom to spend our money however we please, mainly on the relatively cheap stuff we can still afford.

"Patriotism and consumerism are about buying, not austerity, generally speaking," says Gary Cross, a US cultural historian at Penn State and the author of several books on consumerism.

As a nation, we've developed a consumer-first identity. What it means to be an American and to have a good American life is intertwined with what and how we spend.

"Consumerism is bound up with that whole definition of living a life of freedom and choice and self-expression," says Jennifer Smith Maguire, a sociologist at Sheffield Business School who studies consumer culture.

Life milestones and rites of passage are measured by our purchases. Coming of age in your teen years means trips to the mall (yes, Gen Z is bringing the mall back). Adulthood is marked by paying for weddings, buying homes, and furnishing a life. Aging means letting go of all the stuff we've accumulated over the course of our lives, which may feel like letting go of pieces of ourselves.

We buy things because we believe our consumption says something about us — we're cool, we care about the environment, we're not yet "old." We're inundated with different kinds of yogurt in the grocery aisle. Whether we're shopping at the store or online, the options for jeans are endless. The extreme freedom of choice can be overwhelming, but it's also what we've become accustomed to.

"Products have a natural connection to help us tell the stories about who we are," says Americus Reed, a marketing professor at Wharton at the University of Pennsylvania. "If I choose A and not B and C, that must reflect something about me as a function of what I know about A, B, and C."

Americans have come to equate consumerism with democracy. We recognize that we can't all be rich, but we can all aspire to something that rich people can buy. Full participation in American society isn't just voting and working, it's buying.

"Everybody can participate in the market, if only to a little tiny fraction," Maguire says. "That little tiny fraction leaves open the possibility that through enough hard work and good luck and the kind of Horatio Alger story, I can get to be more of a participant in the democracy of goods."

Given how the US economy operates, participation from everyone is a good thing. Consumer spending underpins the economy, with personal expenditures accounting for about two-thirds of GDP. Even a small dip could have significant consequences.

"This usually happens on the business side, and it is coordinated — businesses pulling back on investment tends to cause recessions. Because consumer spending is so much larger, you wouldn't need a huge reduction in consumer spending to have a pretty big macro impact," says Michael Madowitz, the principal economist at the Roosevelt Institute, a progressive think tank. "Even if it's just people deciding to wait a few months to buy something, that can have pretty big impacts pretty quickly."

Beyond the economic boost, going out and spending is generally seen as part of Americans' patriotic duty. Consumerism is how we fueled the postwar economy and distinguished ourselves from the USSR in the Cold War. After the September 11 attacks, political leaders told Americans not to let what happened "in any way throw off their normal level of activity." During the pandemic, the federal government sent out checks so people could keep spending.

While "spending through the worries" has worked to rally Americans, sacrifice is not usually a popular political message. Former President Jimmy Carter was knocked for years over a 1977 chat where he donned a cardigan sweater and encouraged Americans to turn down the heat over potential natural gas shortages. Carter's predecessor, President Gerald Ford, was met with similar trouble when he encouraged Americans to "whip inflation now" by cutting back spending.

This isn't to say that American consumers haven't sacrificed in moments of war and crisis in the past, but people are usually only willing to do so "based on the idea that we're in an emergency," Penn State's Cross says, "and I'm not sure that people have really bought that." Trump is arguing for emergency austerity as a way to stop other countries from what he considers to be taking advantage of the US, but despite the president's rhetoric on tariffs and trade imbalances, Americans aren't buying that we're in severe crisis mode now. Polls show consumers are quite negative on the short-term impact of tariffs, and they're not broadly sold on long-term benefits, either. Heading into Trump's presidency, Americans were excited about the economy. Now, they're alarmed about it, in large part because of his policies. Americans are worried that tariffs are going to hit them where it hurts — their wallets — and the message to just lay off the "buy now" button is not putting them at ease.

People generally do not like being told what to do, including when it comes to their spending. Psychologically, they chafe at the idea that their freedom is being encroached on or they're being pressured. "When you restrict freedom, you'll get counterproductive behavior," Reed says.

On top of a natural aversion to being told no, political polarization makes the reaction even more extreme — many Democrats are going to react negatively to anything a Republican says, and vice versa. Progressives who already don't like Trump aren't going to appreciate him telling them to cool it on spending. There's also something ironic in Donald Trump, the man, telling people to lay off the spending. His entire persona is opulence and overabundance. He, his family, and his allies are making enormous amounts of money with him in the White House. "These guys are getting rich and they're telling you, 'Please buy less dolls for Christmas while all this is settling out,'" Reed says.

Cards on the table: It probably would be good for us to have less stuff. It's not clear if three dolls per child is the right amount, but 30 dolls does seem like a lot. (Though, do kids even play with dolls anymore?) But the president isn't asking for people to be more thoughtful about their materialistic impulses, to rein in pending for the sake of the environment or to discourage exploitative labor practices. He's not advocating for people to put down their gadgets to enjoy experiences and the people around them. Instead, he's asking people to make what seem like arbitrary and unnecessary sacrifices for uncertain promises about a vague vision for a different kind of US economy. And he's doing so at a moment when many people are already feeling stretched on covering basic necessities.

"It's a big difference between me saying, 'I don't need the extra tie for Father's Day this year,' versus people who are like, 'I've been telling you for months that I can't afford eggs. Why are you making everything else more expensive?'" Madowitz says.

Trump's mission to make more stuff in the United States may be one that many Americans agree with, but accomplishing it is much more complex than the current undertaking accounts for. As much as consumers say they would pay more for American-made goods, when the rubber hits the road, they usually go for the cheaper option, even if it's produced abroad. Many workers don't want the masculine-coded manufacturing jobs the White House seems so focused on, let alone ones sewing shoes in factories or, as Trump seemingly envisions, making dolls. There's a gendered air to the dolls focus as well — the White House is arguing that people who complain about their policies are worrying about trivial things are for trivial little girls. Consumerism is often coded as feminine, and the world Trump envisions has a masculine, austere bent to it, one where real men only buy the real things they need. A Rolls-Royce gets a tariff exemption. A Barbie does not.

Many Americans don't get to do a lot of choosing these days. Big-ticket items, such as housing, schooling, and healthcare, are prohibitively expensive. Inflation is pushing more and more things out of reach. A couple of excess pairs of shoes in the closet or tools in the garage are some of the most accessible versions of economic freedom Americans have left — and, yes, a bunch of toys, if they so insist.

Emily Stewart is a senior correspondent at Business Insider, writing about business and the economy.

• The US and China agreed to suspend most tariffs for 90 days to allow for further talks.
• Trade experts believe US-China trade will spike during talks, and that the eventual deal will be broad.
• Stocks surged on the news, but a Fed governor remains concerned about inflation and economic slowdown.

The US and China agreed to suspend most tariffs on each other's goods for 90 days, following high-stakes negotiations in Geneva over the weekend.

As the tariff pause begins on Wednesday, experts expect a spike in trade between the countries, as companies race to front-load inventory while negotiators work on a deal.

"The negotiations suggest that both countries realize they need each other," Andrew Collier, a senior fellow at the Mossavar-Rahmani Center for Business and Government of the Harvard Kennedy School, told Business Insider.

The temporary truce slashes China's tariffs on the US from 125% to 10% and the US's tariffs on China from 145% to 30%. The deal leaves President Donald Trump's fentanyl-related 20% tariffs in place and does not restore the de minimis exemption, which applied to e-commerce from China and allowed Temu and Shein orders to remain duty-free.

Following the agreement, stocks rallied sharply on Monday, especially for tech. The Nasdaq Composite and the S&P 500 each surged around 3%, while the Dow Jones Industrial Average jumped more than 2.4% and gained over 1,000 points.

A spike in US-China trade

As businesses rush to get shipments across the Pacific while tariffs are lower, Scott Kennedy, senior advisor in Chinese business and economics at the Center for Strategic and International Studies, told Business Insider that he expects US-China trade to speed up during the 90-day negotiation.

"US-China trade should bounce back," said Kennedy. "We may see a substantial jump in cargo for companies that are worried that we will be back at this intersection in a few months, and they need to take advantage of this respite to expand to accelerate trade."

Chinese exports to the US spiked 15.6% in December 2024 compared to the same month in 2023 as businesses frontloaded inventory in anticipation of tariffs once President Donald Trump was inaugurated.

"Our ocean freight bookings from China to US increased 35% in the first day since the trade deal," Flexport CEO Ryan Petersen posted on X on Monday. "A big backlog is looming, soon the ships will be sold out."

However, smaller businesses have previously told BI that they have cash flow constraints when ordering and storing a large volume of products. Increased demand for cargo shipping within a short time frame may also drive up shipping costs.

At the end of the 90 days, trade experts expect the outcome of negotiations to be broad and substantial, but believe there will be some thorny issues that can't be resolved quickly.

Kennedy of CSIS is expecting the US to focus on China's industrial policy, fentanyl, and intellectual property theft, while China would likely try to resolve US export controls, restrictions on investment, and the fees that are scheduled to be imposed on Chinese ships by October.

"With an extremely broad agenda, and the challenge will be narrowing that agenda toward something that looks like potential concessions by both sides," said Kennedy.

Collier told BI that leaders of both countries are under different kinds of pressures to seal the deal.

"How the US will then try to tackle the knotty issue of state subsidies and China's aggressive mercantilism will have to wait for another chapter," he said.

Cautious optimism

While the stock market reacted to the US-China tariff pause with optimism, Federal Reserve Board Governor Adriana Kugler said that overall tariffs at their new level are still higher than they have been in recent decades. She said in a speech on Monday that this could still lead to a negative supply shock and a squeeze on real income.

"And the uncertainty associated with these tariffs has already generated effects on the economy through front-loading, sentiment, and expectations," Kugler said.

Kugler expects economic growth to come short of last year's 2.5% expansion, even though recession forecasts are sliding in betting markets as US-China tension cools. Progress made in combatting inflation has also slowed, she said, and inflation is still above the 2% goal.

"Trade policies are evolving and are likely to continue shifting," she added. "Even as recently as this morning."

• US-China container volumes fell 30% to 40% in April due to tariffs, Maersk's CEO said.
• Maersk, a key global trade indicator, has noticed rapid order cancellations amid tariff impacts.
• Chinese exports to the US plunged about 20% in April from a year ago.

Container volumes between the US and China plunged 30% to 40% in April as President Donald Trump's tariffs took hold, the Danish shipping giant Maersk said on Thursday.

"It has gone very fast, so this is the result of customers reacting very, very fast on canceling orders or stopping orders, and waiting to see if this is going to resolve itself," Maersk CEO Vincent Clerc said at the company's first quarter earnings call.

Often seen as a bellwether for global trade trends, Maersk — the world's second-largest shipper by capacity — is seeing the effects of a sharp pullback in transpacific activity.

US-China container volumes make up just 5% of Maersk's business, but Clerc's assessment of the sharp decline in trade between the world's top two economies aligns with the 35% drop in cargo volumes from Asia that the Port of Los Angeles expects.

The drop coincides with the US's 145% tariff rate on Chinese imports, which went into effect in early April. Trade talks between Washington and Beijing are scheduled for this weekend, but uncertainty continues to ripple through supply chains.

Clerc said many companies are responding by drawing down existing inventory and postponing new orders until the policy outlook becomes clearer. Businesses are pulling stock not just from their own warehouses, but also from inventory held in Canada, Mexico, and across US-based distributors and vendors, as they wait for clarity on trade policy.

Clerc warned of potential shortages for some products, like solar panels and batteries, for which China dominates the supply chain, should the standoff between Washington and Beijing persist.

"Let's be clear, if we don't find something before the summer, it's going to start to hurt quite a lot across the board, because there are certain commodities and certain things where you can't really substitute some of these imports freely," he said.

Maersk previously projected a 4% growth in global container volumes for the year. It has now changed that outlook and expects the volume to range from a 1% decline to 4% growth.

Logistics experts and shipping specialists told Business Insider last week that the US could face price hikes and empty shelves within weeks as Trump's tariffs hit supply chains.

Despite the disruption, Maersk said it has been able to redeploy unused US-China capacity to other trade lanes where demand remains strong.

In April, Chinese exports rose 8.1% in dollar terms compared to a year ago, official customs data showed on Friday. Shipments to Southeast Asia jumped 21% while exports to the European Union rose 8%.

• Global leaders have reacted to Trump's tariffs with a mix of criticism, concern, and calls for calm.
• Some countries, like China, have chosen to retaliate, which could complicate upcoming talks.
• Negotiations and talks thus far have not yielded concrete trade deals.

Global leaders have reacted to US President Donald Trump's sweeping tariffs with a mix of criticism, concern, and calls for calm.

As of May 7, there is a 10% blanket tariff on all goods imported into the United States, with limited exemptions for the auto industry and some electronics; additional tariffs on 75 countries were paused on April 9.

The US now has up to 245% in tariffs on imports from China, the manufacturing hub, while China has retaliated with a 125% tariff on US goods.

The Trump administration has repeatedly indicated that it is negotiating with various trading partners, including Canada, Mexico, and Japan, but none of those talks have yielded a trade deal thus far.

Trade and international relations experts have previously told Business Insider that the pressure is now on Trump to deliver trade deals before the tariff pause ends 90 days from April 9.

However, on May 6, Trump said he doesn't need to make deals in response to being asked when deals would be made.

"We don't have to sign deals, they have to sign deals with us. They want a piece of our market. We don't want a piece of their market," Trump said during the White House meeting with Canadian Prime Minister Mark Carney.

On the night of May 7, Trump teased a trade deal framework announcement for Thursday morning.

Here is what world leaders have said about Trump's tariffs and potential negotiations so far.

Canada

Prime Minister Mark Carney called Trump's April 2 tariffs "unjustified," and vowed to defend jobs in Canada "by protecting supply management, doubling revenue protections, and expanding processing capacity."

During a May 6 meeting with Trump at the White House, both leaders signaled that the USMCA — a trade agreement between the US, Canada, and Mexico — could face an overhaul.

"It is a basis for a broader negotiation," said Carney of USMCA while fielding reporter questions with Trump. "Some things about it are going to have to change, and part of the way you've conducted these tariffs has taken advantage of existing aspects of USMCA — so it's going to have to change."

Carney is considered by many as a relative newcomer in politics, but he has decades of experience in finance.

China

Trump and China have thus far disagreed on everything from whether tariffs are justified to who initiated their upcoming trade talks in Switzerland.

"The meeting between Chinese and US senior officials on economic matters was requested by the US side," China's spokesperson for the Ministry of Foreign Affairs, Lin Jian, wrote on X on Wednesday. "Recently, the US has said repeatedly it wants to negotiate with China."

Trump denied that the US had reached out first, and said, "No," on May 7 when asked if he would consider lowering his tariffs on China to help smooth upcoming talks.

China has previously suggested that the US must lower the imposed tariffs first to gain trust.

"China wants to stress: in any potential talks and discussions, if the US doesn't correct its false unilateral tariffs, it means there is a lack of genuine intent, and that will further erode mutual trust," said the spokesperson of China's Ministry of Commerce in a press conference on May 2.

"Talking one way and acting another, or using talks as a cover for coercion and pressure, simply won't work with China," the spokesperson added.

Mexico

Despite facing 25% in tariffs, Mexican President Claudia Sheinbaum has taken a less critical stance than most world leaders.

"There are no additional tariffs on Mexico, and that is good for the country," Sheinbaum said during a press conference on April 3 after Trump announced broad tariffs the day before.

Sheinbaum said Mexico was spared from more tariffs due to "the good relationship we have constructed with the US government, based on collaboration but with respect."

In a subsequent daily briefing on April 7, 2025, Sheinbaum confirmed that Mexico will not impose retaliatory tariffs on the US.

Sheinbaum had also previously successfully negotiated pauses on tariffs imposed on Mexico in February by highlighting her efforts in curbing fentanyl trafficking and deploying 10,000 National Guard troops to the border, issues that were listed by Trump as reasons to place duties on Mexico.

Spain

Spanish Prime Minister Pedro Sánchez called Trump's April 2 tariffs on EU imports a "unilateral attack" and "19th-century protectionism."

Sanchez also promptly announced a €14.1 billion ($15B) aid package for affected industries like aluminum, olive oil, and wine.

"We will overcome this unfair crisis without renouncing our values," Sánchez said. "Europe's hand is outstretched, and it always will be because the American people, beyond their governments, are a friendly people, but that does not mean that we are going to stand by and do nothing."

After Trump paused additional tariffs on 75 trading partners on April 9, Sánchez said the decision could open "a door to negotiation."

Germany

The outgoing chancellor of Germany, Olaf Scholz, said Trump's decisions on tariffs are "fundamentally wrong" and supported Ursula Gertrud von der Leyen, president of the EU Commission, when she called for Europe to react "united, strong, and appropriate."

"This is an attack on a trade order that has created prosperity around the globe," Scholz said at a news conference in Berlin on April 7.

"The entire global economy will suffer from these ill-conceived decisions. Businesses and consumers everywhere in the world, including in the US, will be affected," Scholz added. "The US administration is embarking on a path that can only result in losses for everyone."

German economy minister Robert Habeck said in February that Trump will "buckle under pressure" if Europe bands together.

Conservative leader Friedrich Merz became Germany's new chancellor as of May 7 and has yet to address tariffs.

Australia

Anthony Albanese, the prime minister of Australia and leader of the Labour Party, made it clear that there will be no retaliatory measures against the US.

"It is the American people who will pay the biggest price for these unjustified tariffs," said Albanese in a statement on April 3. "This is why our government will not be seeking to impose reciprocal tariffs. We will not join a race to the bottom that leads to higher prices and slower growth."

Despite being critical of Trump's tariffs, Albanese said there will be "continued constructive engagement" with the US, because the history between the two countries is "bigger than a poor decision."

Japan

Japanese Prime Minister Shigeru Ishiba urged Trump to lower tariffs against Japan in a phone call with Trump on April 7, but said a deal "won't come overnight."

"I've told the president that Japan has been the biggest investor in the United States for five straight years and the tariff policies could hurt Japanese companies' investment capabilities," said Ishiba during a news conference after the call.

During Trump's first term as president, the US and Japan signed a bilateral trade deal in 2019 that cut tariffs on US farm goods, Japanese machine tools, and other products while staving off higher duties on Japan's auto exports.

Japanese Prime Minister Shigeru Ishiba said on April 21 that Tokyo has no plan to terminate the trade deal struck in 2019, but will keep voicing "grave concern" over inconsistency between the deal and Trump's latest automobile tariffs.

Ryosei Akazawa, Japan's chief tariff negotiator, has been visiting Washington, DC, in recent weeks.

• China says the US requested an upcoming trade talk, but President Trump begs to differ.
• American and Chinese officials are set to meet in Switzerland this weekend to talk trade.
• The US and China have hurled tariffs, and insults, at each other over the past month.

Tensions are high between the US and China ahead of a planned trade talk, and the dueling superpowers can't even agree on who initiated the meeting.

US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer announced this week that they'll will be meeting with their Chinese counterparts in Switzerland this weekend to discuss US-China trade relations as Trump's heavy tariffs remain in effect and the trade war rages on.

But no one can agree who actually initiated the talks.

"The meeting between Chinese and US senior officials on economic matters was requested by the US side," China's spokesperson for the Ministry of Foreign Affairs, Lin Jian, wrote on X on Wednesday. "Recently, the US has said repeatedly it wants to negotiate with China."

Jian's comments echoed those of a spokesperson for China's Ministry of Commerce, who said in a press conference last week that the US had "recently taken the initiative to send messages to China multiple times through relevant parties" in hopes to start the conversation with China.

President Donald Trump has scoffed at the suggestion that the US had requested the meeting.

"They said we initiated? Well, I think they ought to go back and study their files, OK? I do think that," Trump told reporters Wednesday when asked about the upcoming meeting.

Since Trump imposed a 145% tariff on Chinese goods last month and China responded with its own 125% tariff on American goods, the countries have exchanged insults and blamed each other for the tariff.

"This tariff war was started by the US," Jian wrote in his Wednesday X post. "China firmly opposes the US's tariff hikes. Meanwhile, China is open to dialogue, but any dialogue must be based on equality, respect and mutual benefit. To pressure or coerce China in whatever way simply does not work."

On Wednesday, Trump flatly said "no" when asked if he would consider lowering his tariffs on China to help ease this weekend's talks, though he also recently said that the 145% tariff on China is "very high" and will "come down substantially."

Trump has previously railed against China for "ripping off" the US, while China has accused the US of "bullying" and said it risked becoming a "joke" on the world stage. Chinese social media has also exploded with memes mocking Trump and America.

The White House did not immediately respond to a request for comment from Business Insider.

Business Insider's Katherine Li contributed a translation for this story.

Top US allies are discussing how to make Americans "feel the pain" after Trump hit their countries with tariffs and threatened to leave NATO. Politico's Eli Stokols and journalists in the Axel Springer network report on how US allies could retaliate in this video collaboration with Business Insider.

• Major consumer and retail brands are reporting the effects of tariffs in their earnings calls.
• Some are seeing higher costs on imports, especially from China.
• Others are seeing less-direct effects, such as Mexican consumers avoiding American brands.

Tariffs are here, and they're affecting some of the biggest consumer brands.

For some companies, tariffs present a clear, if difficult, problem: Goods made in other countries, especially China, are now more expensive to bring to bring into the US. For brands and retailers to protect their profit margins, that will mean hiking the prices that shoppers pay.

Other brands import far less to the US, but are seeing people in other countries turn away from their goods due to their connection with America.

Here are some of the ways that tariffs are affecting some of the biggest consumer brands and retailers, as spotted in the latest round of earnings reports.

Adidas

Adidas, which is based in Germany, warned on Tuesday that the prices of almost all of its products will go up in the US under the current tariffs.

The reason? Adidas "currently cannot produce almost any of our products in the US," CEO Bjørn Gulden said.

"Should the duties stay, then of course, there will be price increases in the US market," Gulden said during the sneaker maker's earnings call.

Amazon

Amazon said in earnings on Thursday that it's "maniacally focused" on keeping prices low even with tariffs in place. CEO Andy Jassy pointed to Amazon's wide product selection as an advantage for consumers looking to save money or hunting for a particular product as supply chains are squeezed.

At the same time, whether prices go up or not also relies on what the over two million third-party sellers on Amazon's platform decide to do, Jassy added.

Amazon did book $1 billion in one-time costs for its first quarter. Some of the charges came after the company brought in some inventory earlier than planned to minimize its tariff bill.

On Tuesday, White House press secretary Karoline Leavitt criticized Amazon after Punchbowl News reported that the e-commerce giant planned to break out how much tariffs were contributing to price increases for shoppers. Leavitt called the proposal a "hostile and political act" on Amazon's part.

Amazon later said that it never approved the plan and only considered it for Haul, an Amazon website that competes with Temu and other sites that source products directly from China.

Retail analysts told Business Insider that the White House's comments are likely to make retailers think twice about how they disclose the costs of tariffs to shoppers.

Coca-Cola

Tariffs' effects on Coca-Cola are "manageable," CEO James Quincey said in an earnings call on Tuesday.

That's because many of the ingredients that its bottling facilities use source locally and only import a few inputs such as machinery.

But tariffs and broader backlash against the US are still taking a toll on the company, Quincey said.

Coca-Cola saw its sales slip among hispanic consumers in the US and parts of Mexico near the US border, Quincey said. "Some of the geopolitical tension was just causing people to be a little more cautious with their spend," he said.

In response, Coca-Cola is emphasizing its local operations in Mexico through an ad campaign it calls "Hecho en México," or "Made in Mexico."

Hasbro

Trump's tariffs could hit toy sales with a force "consistent with what happened with the 2008 and 2009 recession," Hasbro CEO Christian Cocks said in late April.

Toy industry sales dropped by "mid-single digits" during the Great Recession, Cocks said.

Tariffs could also hit Hasbro's net profit by between $60 million and $180 million in 2025, the CEO said.

Many of Hasbro's toys are manufactured in China or other countries. The company also makes board games, such as Monopoly, many of which are made in the US.

• Trump said kids could have fewer dolls under tariffs, but consumers buy more than toys from China.
• The US heavily relies on China for electronics, medical supplies, baby products, and apparel.
• The 145% tariff on China would drive up the costs of daily necessities for consumers.

President Donald Trump suggested kids could do with fewer toys, and there are likely plenty of Americans who agree with him.

But toys are far from the only thing the US buys from China.

From electronics that keep your household running to medical equipment used in life-saving situations, those goods likely came from China.

Trump has imposed a broad 145% tariff on China, while some Chinese goods have been hit with even higher tariff rates. In a cabinet meeting at the White House on Wednesday, when asked about trade relations with China, Trump waved off concerns that some shelves would be empty as a result of the tariffs.

"Maybe the children will have two dolls instead of 30 dolls, and maybe the two dolls would cost a couple of bucks more than they would normally," Trump said.

The US imports about 80% of all its toys from China, according to data from the Toy Association. However, most Chinese goods would likely fall under the category of necessities, while others are an integral part of American life that cannot easily be replaced with American-made alternatives.

"A lot of products that are subjected to tariffs were never made in the US, so we don't know how to make them," Willy C. Shih, a professor of management practice in business administration at Harvard Business School, told BI.

For example, he said, "Liquid crystal flat panel displays are made in Asia, mostly in China. We don't make them in the US and we never have made them here, so it's not even a question of bringing those manufacturing back."

Shih said that moving supply chains and establishing new factories take large investments in equipment and training, which usually pay off within years if the operation is moving to a lower-cost country. The US, he says, is not a lower-cost country.

Here's a breakdown of some of the most essential goods the US sources from China.

Your home life would not look the same without China

From the first thing you touch in the morning to the last thing you see before you call it a night, your daily routine would not look the same without the presence of Chinese goods.

If you like smoothies in the morning, have a personal care routine, or plan to play Super Mario Bros. with your best buddies next Friday night, chances are you have household electronics made in China.

Trade statistics from the US Department of Commerce show that more than 97% of alarm clocks and wall clocks imported to the US came from China in 2024, along with 77% of video game consoles, 84% of household food blenders, and 93% of electric toothbrushes.

Additionally, 76% of US smartphone imports, 78% of US portable computer imports, and 70% of rechargeable lithium-ion batteries used in electronics and electric vehicles also came from China, according to United Nations Comtrade data compiled by the Atlantic Council.

Though the Trump administration in mid-April announced that some electronics, including smartphones and computers, would be exempt from the tariffs, not all are, and these exemptions could be removed at any time.

Hospitals count on medical equipment from China

According to data from the US Department of Commerce, 94% of first-aid kits and boxes imported to the US came from China, as well as 40% of rubber medical gloves and 54% of all medical adhesive dressings.

When the Biden administration announced a plan to raise tariffs on many China-made items in May 2024, the American Hospital Association published a fact sheet showing that any broad tariffs on China would impact the prices of basic medical equipment like syringes, medical masks, respirators, and gloves.

While medical supply expenses account for only around 10.5% of an average hospital's budget, they collectively accounted for $146.9 billion in 2023, an increase of $6.6 billion over 2022.

The Biden administration ended up extending exemptions to a wide range of healthcare products through May 31, 2025, including single-use sterile drapes, laparotomy sponges, and anesthesia instruments.

When asked whether these exemptions still hold under Trump's executive orders that did not specify exemptions, US Customs and Border Protection told BI in a March statement that they are "committed to supporting the Trump administration's Executive Orders related to tariffs while upholding US trade laws" and that the "dynamic nature" of their mission "requires CBP to remain flexible and adapt quickly."

The White House did not respond to a request for comment.

"Higher prices for high-volume medical supplies, such as personal protective equipment and syringes, are likely to exacerbate and prolong the financial headwinds that hospitals already face today," said the AHA in a statement in 2024.

Children get much more than just toys from China

While children need dolls, their care requires more than just entertainment.

Michael Wieder, cofounder of baby product brand Lalo, which sells everything from child-safe utensils to baby chairs, previously told Business Insider that the brand's primary supply chain is in China, and he would have very little ability to move it elsewhere because products for children are heavily regulated for safety.

"We work with factories that have been in the business for decades, making children's products and ensuring that they're safe," said Wieder. "All the factories we work with have all of the safety equipment, all the testing, all the engineering talent to ensure that we're making the highest quality, safest products — we can't replace that easily."

Nearly 98% of all imported baby carriages and strollers came from China in 2024, according to trade data from the US Department of Commerce.

China produces more than just fast fashion

While cheap clothes and fashion accessories from Shein and Temu have been widely criticized for their poor quality, how fast they end up in landfills, and questionable labor practices, American apparel brands, both large and small, have told BI that they are suffering the impacts of tariffs on China.

Up to 90% of US bridal gowns are made in China, according to the National Bridal Retailers Association.

Featuring intricate details like lace, boning, and thousands of hand-sewn beads, the average wedding dress already costs $2,000 according to wedding planning platform The Knot, and could more than double under tariffs.

"The overriding feeling is despair," Angie Oven, a bridal shop owner and president of the NBRA, told BI after a meeting she held with 75 of the group's members.

Haley Pavone, founder and CEO of Passion Footwear, which produces shoes with fully convertible high heels, told BI that it would be impossible for her to move her supply chain out of China due to her brand's specialized manufacturing needs and limited resources as a small business.

"Our options are to just keep paying this tariff, which isn't reasonable," said Pavone, "And so there's no way to not pass that price onto the consumer, and then we just have to hope they're willing to pay it."

• Warren Buffett criticized tariffs during his Q&A at Berkshire Hathaway's annual meeting on Saturday.
• "Trade should not be a weapon," Buffett told investors in Omaha, Nebraska.
• Buffett did not mention President Donald Trump by name while hitting out at tariffs.

Warren Buffett hit out at President Donald Trump's global trade war on Saturday, saying trade should not be a "weapon."

Speaking at Berkshire Hathaway's annual meeting in Omaha, Nebraska, Buffett did not directly name Trump, but made clear his distaste for tariffs.

Buffett made the comments in response to the first question during his widely watched Q&A, the centerpiece event of the annual meeting.

"Trade should not be a weapon," he said."

Buffett called the policies a "big mistake," warning that protectionist policies could have negative repercussions for the US.

"I do think that the more prosperous the rest of the world becomes, it won't be at our expense, the more prosperous we'll become, and the safer we'll feel, and your children will feel someday," Buffett added.

"I don't think it's right, and I don't think it's wise," he said. "The United States won. I mean, we have become an incredibly important country, starting from nothing 250 years ago. There's not been anything like it."

The comments are his most direct yet on the global trade war sparked by Trump's imposition of sweeping tariffs at the beginning of April.

Buffett's comments came after the company reported that its first quarter profits fell by around 14% compared to 2024 to $9.6 billion, while its cash stockpile rose to more than $347 billion.

Buffett's holding company, Berkshire Hathaway, has surged despite volatile financial markets since Trump's election last year.

The conglomerate is up more than 20% since Trump won victory on November 5, in spite of the S&P 500 being down almost 2%

Trump's administration has imposed tariffs of 145% on China, which were countered with retaliatory Chinese levies of 125%.

• Airbnb's CFO said fewer foreigners are booking nights in the US than last year or earlier this year.
• Airbnb CFO Ellie Mertz also said Canadians, in particular, are pulling back on travel to the States.
• Canadians are visiting Mexico, France, Brazil, and Japan instead, she said on an earnings call.

The number of foreigners booking Airbnbs in the US has decreased from last year and earlier this year, with Canadians "traveling at a much lower rate," according to Airbnb's CFO.

CFO Ellie Mertz said during Airbnb's first-quarter earnings call Thursday that US reservations from foreign travelers were down, citing "economic uncertainty" as a factor.

"We absolutely have seen a decline in popularity of foreign travelers coming to the US," she said on the call.

"Guests who would have in a prior year come to the US are simply choosing a different location," she added.

Nights booked by Canadian guests to Mexico increased 27% between March 2024 and March 2025, according to Airbnb's letter to shareholders about first-quarter earnings.

In earnings calls this week, executives at Hilton and Booking Holdings, which owns Booking.com, Priceline.com, and Kayak, said that Canadian travel to the US had flagged, spotlighting Mexico as a place with upticks in Canadian visitors.

On the Airbnb earnings call, Merrtz said that Canadians are traveling more domestically. She also said they visit Mexico, Brazil, France, and Japan.

"In this moment, it's not necessarily that people don't want to travel, they are just using different destinations," Mertz said.

Canadians have expressed dissatisfaction with President Donald Trump's tariffs and remarks about annexing it as another state. Some have boycotted travel to the US.

Mertz also said that even if Canadians and other international travelers are choosing destinations outside the US, foreign travelers to the States only make up about 3% of Airbnb's business.

She said most nights booked on Airbnb in the US are by domestic travelers, and only a "single-digit percentage" of global nights booked come from international travelers to the US.

Shares of Airbnb closed higher by about 1% on Friday after the company reported earnings that were roughly in line with expectations.

Airbnb CEO Brian Chesky told investors and analysts on the earnings call that he believes the booking platform has endured during past periods of economic stress because it offers travelers options at affordable price points.

"We started Airbnb during the Great Recession of 2008. People turned to us for a more affordable way to travel, and they started hosting Airbnb to earn extra income. Then, in 2020, when the pandemic hit, we provided a way for people to travel close to home," he said. "Today, things feel uncertain once again. But just as we've shown in the past, as the world changes, Airbnb will continue to adapt."

• Warren Buffett will host a nearly five-hour Q&A at Berkshire Hathaway's annual meeting this weekend.
• More than a dozen of Buffett's close followers told BI the burning questions they hope he'll answer.
• They're eager for him to speak about tariffs, Berkshire's cash pile, and retirement plans.

Warren Buffett kept quiet when stocks tumbled. On Saturday, the famed investor will break his silence with nearly five hours of questions at Berkshire Hathaway's annual shareholder meeting.

The $1 trillion conglomerate, which Buffett still heads at 94, owns many businesses, including auto insurer Geico and the BNSF Railway, and holds billion-dollar stakes in public companies such as Apple and Coca-Cola. If it's affecting the US economy, it's affecting Berkshire. That, combined with Buffett's decades of investing experience, will have tens of thousands of followers hanging off his every word during the event in his hometown of Omaha.

More than a dozen of Buffett's close followers told Business Insider the burning questions they want him to answer, from tariff impacts and Berkshire's cash pile to his retirement plans and Apple disposals.

Trade war fallout

Tariffs have reignited investors' fears of inflation and recession, sparking an exodus from US stocks, Treasurys, and the dollar in recent weeks.

"I'd like to hear how the tariffs are affecting Berkshire's businesses now, and how they may affect the businesses in the future," Steven Check, the CEO of Check Capital Management, told BI. He also wanted to hear Buffett's views on tariffs from a global perspective.

Adam Mead, the author of " The Complete Financial History of Berkshire Hathaway " and a money manager, told BI that Trump's tariffs "might change the calculus" for Berkshire's solar projects, adding they likely source many of their panels and equipment from overseas.

Adam Schwartz, the founder and chief investor of Black Bear Value Partners, told BI he hoped Buffett would address tariffs and advise investors on protecting their portfolios.

Schwartz said, "Does he view the tariff policy as a structural change in the environment, and how do you handicap the downside?"

John Longo — a finance professor, investment chief, and the author of "Buffett's Tips: A Guide to Financial Literacy and Life" — told BI he hoped Buffett would say whether he still thinks the US trade deficit is an urgent problem as he argued in a Fortune article in 2003.

Spending plans

Buffett nearly doubled Berkshire's pile of cash, Treasury bills, and other liquid assets to a record $334 billion last year, partly by selling a net $134 billion of stocks and halting share buybacks in the second half.

His followers want to know what he plans to do with that war chest, which exceeds Coca-Cola's entire market value. He could use the dry powder to make a blockbuster acquisition, scoop up stocks, reinstate share purchases, or even pay a dividend.

"Why is he amassing this huge cash position, and where would the stock market need to fall for him to write 'Buy American. I Am.' like he did in the fall of 2008?" asked Bill Smead, the founder and chief investor of Smead Capital Management.

Smead was referring to Buffett's famous New York Times op-ed at the height of the financial crisis, in which he urged others to join him in making long-term bets on American businesses.

Alex Morris, the author of "Buffett and Munger Unscripted" and the founder of investment research service TSOH, told BI he was "curious" to hear whether Buffett still believes Berkshire should have a minimum of $30 billion in cash reserves, and what "the largest deal they could do today" would be.

Buffett's acolytes are also waiting impatiently to learn whether the legendary bargain hunter capitalized on the recent stock plunge.

"Has Berkshire been investing its cash after the sharp market decline in April?" asked David Kass, a finance professor at the University of Maryland and longtime Buffett blogger.

Signature stocks

Berkshire sold 67% of its biggest stock position, Apple, in the first nine months of 2024. But it left the remaining 300 million shares intact in the fourth quarter, even though the iPhone maker's stock traded higher than it did earlier in the year.

That raises a roughly "$60 billion question of why not sell the whole position?" Mead told BI. "It's a bit perplexing."

Darren Pollock, a portfolio manager at Cheviot Value Management, also queried the remaining Apple stake. The stock is down around 12.5% year-to-date.

"He's Warren Buffett, he obviously has a thoughtful rationale, and I'd love to hear it," Pollock told BI.

Berkshire businesses

Buffett often sheds light on Berkshire's myriad subsidiaries during his annual Q&A.

"I always enjoy the color provided on the key businesses," Paul Lountzis, the president of Lountzis Asset Management, told BI. He reeled off Geico, the overall insurance division, the BNSF Railway, Berkshire Hathaway Energy, and Berkshire's manufacturing and retailing segments.

Several followers said they hoped Buffett would compare Geico, the revitalized auto insurer, to its archrival Progressive on profitability, market share, and underwriting expenses.

Mead said he wanted to know why Berkshire valued energy giant BHE below $50 billion in a deal last year to buy a minority interest from his late friend Walter Scott's estate, despite valuing it closer to $90 billion when Berkshire purchased non-insurance chief Greg Abel's stake in 2022.

"Is BHE really worth that much less today compared to then, or was that a quirk in the purchase agreement with the Scott estate?" Mead asked.

Winding down

At 94, Buffett has been detailing his estate planning and championing his planned successor, Abel, in his recent letters to shareholders. Kass told BI he'd like to know whether Buffett plans to resign as CEO in the near future.

Others said they were hungry for insights into how Abel would run the company.

Lawrence Cunningham, the author of numerous books about Berkshire and the director of the University of Delaware's Weinberg Center on Corporate Governance, told BI he wanted to hear from Abel, "particularly his vision for Berkshire's future and how he plans to uphold the company's core values and strategic direction."

Luke Rahbari, the CEO of Equity Armor Investments, told BI he was eager for Abel to elaborate on how he'll "approach capital allocation, including stock picking and acquisitions, and how might his leadership style differ from Buffett's?"

Morris referred to how Buffett urged the US government in his latest shareholder letter to use Berkshire's record tax payment to help the less fortunate.

"Relative to current US policies, what does Warren believe would be the most effective additional way to take care of the people who got the short straws?" he asked.

Brett Gardner, an analyst and the author of the recently released "Buffett's Early Investments," told BI he's crossing his fingers that the Berkshire chief will be asked about some of his findings: such as whether an early bet, Philadelphia and Reading Railroad, was an "inspiration for Berkshire," and details on how Buffett analyzed the corporate governance risks attached to buying 5% of Disney in 1966.

"Selfishly, I am hoping he gets some questions on my book!" Gardner added.

Brian Gongol, a Buffett superfan who's been a shareholder since 2007, told BI his question was inspired by Buffett's oft-repeated advice: "Invest in yourself."

"I'd like to know what he thinks was Berkshire's best reinvestment in itself, whether it took place this past year or simply bore fruit in the last year," he said.

• The US and Ukraine signed a deal for American companies to access essential natural resources.
• The agreement includes aluminum, graphite, and oil projects that could boost tech and defense.
• China's export restrictions on rare earth elements have heightened the deal's strategic importance.

The US and Ukraine struck a major deal granting American companies privileged access to key natural resources in Ukraine — including aluminum, graphite, oil, and natural gas — that could boost the tech and automotive sectors.

Ukrainian Deputy Prime Minister Yulia Svyrydenko and Secretary of the Treasury Scott Bessent signed the deal in Washington, DC, on Wednesday.

"This agreement signals clearly to Russia that the Trump Administration is committed to a peace process centered on a free, sovereign, and prosperous Ukraine over the long term," the Treasury Department said in a press release. "President Trump envisioned this partnership between the American people and the Ukrainian people to show both sides' commitment to lasting peace and prosperity in Ukraine."

The Wednesday press release added that this economic partnership positions Ukraine and the US to "work collaboratively and invest together" to ensure that "our mutual assets, talents, and capabilities can accelerate Ukraine's economic recovery."

Ukrainian Deputy Prime Minister Yulia Svyrydenko said on social media, "Together with the United States we are creating the Fund that will attract global investment into our country."

Bessent later said in a video statement that the deal would help "unlock Ukraine's growth assets."

Trump's trade war heightened the importance of a deal with Ukraine

The agreement comes at a time of rising supply chain uncertainty under an ongoing trade war with China, where 90% of the world's current rare earth metals are sourced from.

As of April 4, China has restricted exports of seven rare earth elements and related materials in response to Trump's tariffs, potentially affecting critical industries like defense, energy, and automobiles.

Ukraine possesses a rich array of natural resources that are of growing importance to the US. Graphite, lithium, and titanium are vital for EV battery production, solar panels, and military equipment, while high-purity neon gas and rare earth metals are critical for semiconductor manufacturing under rising demand for artificial intelligence.

The minerals deal was originally due to be signed on February 28, but Ukrainian President Volodymyr Zelenskyy's visit to Washington ended in acrimony.

The agreement was signed just days after Trump and Zelenskyy met in person on the sidelines of Pope Francis' funeral, as cease-fire talks between Moscow and Washington continue. Trump on Wednesday called their face-to-face meeting a "moment of solace in a sense" in an interview with ABC News.

The White House and the Department of the Treasury did not respond to requests for comments.

• Isheeta Borkar and her now-husband met when she lived in Vancouver and he lived in Seattle.
• When they married in 2019, they decided Canada was the best place to build their life together.
• In Canada, Borkar feels more accepted and like she can travel without being excessively questioned.

This as-told-to essay is based on a conversation with Isheeta Borkar, a 33-year-old working in human resources and travel blogger living in Vancouver. The conversation has been edited for length and clarity.

My husband and I are originally from India, but moved separately to the US and Canada over a decade ago.

When we met in 2018, he lived in Seattle, and I lived in Vancouver. We dated for over a year, going across the border every weekend to meet. After our wedding in 2019, he moved to Canada to be with me.

We travel often to the US because my husband works for a major tech company and has work commitments there, and my sister lives in Seattle.

Since obtaining Canadian citizenship in 2017, I haven't encountered any challenges crossing the border — until recently.

When we visited Seattle from Vancouver in February, political tensions between both countries were noticeably rising, and we were asked significantly more questions than usual at the border.

Instead of the typical inquiries like "Where are you going?" or "What's the purpose of your visit?", we faced more probing questions such as, "Why are you going there?", "Are you planning to work from there?", and "How many days off are you taking?"

The extensive questioning made us feel considerably more nervous than before. Now I feel a knot in my stomach whenever we cross the border.

I felt more comfortable living in Canada.

When I got married, my parents were very surprised that my husband moved to Canada instead of me moving to the US.

After all, the US is the land of opportunities. There are seemingly more job prospects for ambitious, career-minded people, and the salaries are often higher.

As an immigrant, I believe there's a trade-off to living in the US. I have many friends and family members who live there, all of whom are immigrants. Over the years, I've noticed that regardless of their visa status — a tourist visa, H-1B, or green card — they rarely feel confident or secure about leaving the country and returning.

Recently, there's been much more questioning about when immigrants travel to and from the US. There's always a sense of nervousness for them: "Will I be allowed back in?" or "What if they don't let me return?"

I haven't had to worry about that in Canada. I can travel freely — leave and return easily.

Canada has its pros and cons.

Canada and the US are similar in many ways, but they are also very different. Both countries receive a lot of immigrants. However, I think they differ in their societal attitudes toward newcomers.

Many years ago, I spent two or three months living with my sister in Seattle. I never felt completely welcome or at home enough to build a life there.

However, in the part of Canada where we live, people make it easier to feel at home because of their warmth and welcoming attitudes. It also feels easier to get permanent residency in Canada, blend in, and be part of the community.

Canada also has other great things, like universal healthcare, but some cons exist.

Over the next 10 years, I don't envision having as many opportunities as I would have in the US, not just in terms of a higher salary or career prospects, but also in everyday services.

Food delivery and access to Indian groceries or other services are more limited in Canada, in my experience. Sure, there are more options in larger cities like Vancouver, but you won't find much when you go to smaller cities within British Columbia.

Many Canadians are concerned about tariffs and the looming trade war

My husband and I first felt the impacts of the trade war after putting our apartment in Vancouver up for sale in February.

It's been on the market for about three months, and we've had a couple of showings and a few open houses, but we haven't received any offers.

I believe it's because many people are waiting to see how things play out economically and politically. Many people fear what Trump will decide regarding tariffs and what kind of retaliation might follow.

If there are more tariffs, people may expect life to become more expensive. That could make more people think before they spend.

The real-estate market is also down, which is contributing to people's uncertainty about purchasing property.

Canadians are finding different ways to support the local economy, though.

For example, the BC Liquor Store, the provincial liquor store in British Columbia, has shifted its inventory. It now stocks more BC wines than international selections, such as those from California.

People are also supporting Canada in terms of travel. Some of my friends, who enjoy visiting warmer places like Hawaii or Florida, have canceled their trips there.

We don't plan on moving to the US anytime soon.

My husband and I will continue traveling the US, especially to visit my sister. For her, leaving the country might be more difficult than it is for me to meet her. I work remotely, and she doesn't.

However, if it becomes more difficult to visit her, I'll have to reduce my visits from once a month to maybe every three months.

For now, we're planning to stay in Canada. However, we never say never about living in the States one day.

If something changes, like if we have an extraordinary opportunity — a position that would advance either of our careers in the US — and if that's our priority, we could probably make something work temporarily.

• President Donald Trump's trade war is having an effect on small businesses outside the US too.
• Paul Long, founder of Canadian apparel brand Anian, says the uncertainty is steering him closer to the EU.
• The US is massive, Long told BI, but there are other countries willing to work with each other.

Imports to the US may be plummeting, but other countries aren't sitting still while they look to see what President Donald Trump will do next in his trade war.

In Canada, one apparel manufacturer tells Business Insider that the dispute is leading his company toward stronger ties with Europe and the UK, where no new trade barriers have been introduced.

"The United States is very self-focused," said Paul Long, founder of Vancouver-based Anian.

"A lot of the American public can forget that there are also other massive countries and massive economies out there that are just as happy to work with each other," he added.

Long said Anian has always sourced most of its raw materials from Europe to make its clothing in Canadian workshops. While most sales are within Canada, the company also ships to US customers, mostly in the Pacific Northwest.

With the ever-changing guidance from Washington, DC, Long said many of his US-bound shipments which were originally allowed under the de minimis exemption are now being frozen at the border for days without explanation.

The continuing uncertainty now has him shifting his expansion plans from the US to Europe.

"What this has done is it has made us take the gas pedal off our US expansion and start looking at our UK and EU expansion," he said.

Geographically, Long said Anian has already had to figure out the challenges of getting its products to customers across sprawling provinces, and that the US made the most sense as a nearby neighbor for trade.

But he said the tariffs spurred him to rethink the approach across the Atlantic: "If we can do this in Canada, Europe's a lot easier."

Still, Long says some loyal US customers have shown their support of his business through high-dollar orders and personalized notes.

"I think at the end of the day, Canada and the States have so much in common, culturally and economically," he said.

• CBC News projects that Mark Carney and the Liberal Party will lead the next Canadian government.
• Carney is now set to serve a full term as Canadian prime minister amid trade tensions with the US.
• Canada has imposed retaliatory tariffs on the US, sparking a "buy Canadian" movement.

Canada has selected its leader as it prepares to navigate ongoing trade tensions with its neighbor to the south.

CBC News projected on Tuesday morning that the Liberal Party will form the next government and give Prime Minister Mark Carney a full term. It's unclear if they will have a majority — 172 seats in the House of Commons are needed — or if they'll need to form a governing coalition. As of 4:15 a.m. ET, the Liberal Party had secured 168 seats, per Elections Canada's real-time tracker.

Carney, a former Goldman Sachs banker and the former governor of Canada's and England's central banks, defeated the Conservative Party's Pierre Poilievre, as well as Jagmeet Singh of the New Democratic Party and Yves-François Blanchet of the Bloc Québécois, according to CBC News' projection.

In a speech in Ottawa on election night after his projected win, Carney congratulated Poilievre on "a hard-fought, fair, good campaign."

Canada's trade dispute with the US

The trade dispute with President Donald Trump and the United States was a key issue in the election and a springboard for Carney's success. The Conservative Party, which ran on domestic issues such as immigration and cost of living, held a significant lead in the polls until tariffs became top-of-mind for the country.

Carney has been at the head of the Liberal Party since March, when he took over from Prime Minister Justin Trudeau. Trudeau served as Canada's prime minister from 2015 to 2025.

Carney has presided over a period of national pride for Canada as the country responds to US tariffs and President Donald Trump's threats to annex Canada as the 51st state.

"As I've been warning for months, America wants our land, our resources, our water, our country. Never," Carney said in his victory speech on Tuesday to loud cheers from supporters.

"But these are not idle threats. President Trump is trying to break us so that America can own us. That will never, that will never, ever, happen," he added.

In a speech in March, Carney spoke in fiery terms about the new political climate with the US.

"I know that these are dark days. Dark days brought on by a country we can no longer trust," he said.

In the weeks since Carney began leading Canada, Trump has imposed a 25% tariff on cars, aluminum, and steel. Another 25% tariff on car parts is expected to take effect on May 3. The US also has a 25% tariff on Canadian goods that are not exempted from the United States-Mexico-Canada Agreement.

Canada has imposed 25% tariffs on US goods, including steel, aluminum products, and cars.

Some Canadians have started boycotting US goods and avoiding the US. The tariffs have fueled a "buy Canadian" movement, and airlines and other travel companies have reported a decline in Canadians visiting the US.

Poilievre was expected to become Canada's next prime minister before Trump's trade policy pushed Canadians back toward the Liberal Party, which had been in power under Trudeau. Poilievre, who has been compared to Trump, has led the Conservative Party of Canada since 2022 and served in parliament since 2004.

Carney has a background in commercial and international roles

Carney spent 13 years working for Goldman Sachs in London, Tokyo, New York, and Toronto.

He led two central banks at pivotal moments.

After leaving Goldman Sachs in 2003, Carney served as the Bank of Canada's deputy governor. He was made governor in 2008, at the start of the global financial crisis.

He was the governor of the Bank of England from 2013 through 2020, where he guided the bank's response to Brexit.

Since leaving the Bank of England, Carney has held a mix of commercial and international roles. He was appointed the vice chair of Brookfield Asset Management in 2020 and was made chair after the division was spun out as a new company in 2022.

In 2021, Carney became a board member of the digital payments company Stripe. He was named the chair of Bloomberg's board in 2023.

In January, Carney said while announcing his leadership bid for the Liberal Party that he had resigned from all his commercial and international roles.

• Consumers are worried about their jobs and home values amid the trade war.
• Some states are more insulated from the fallout of tariffs than others.
• These 9 state economies have the lowest exposure to international trade.

As President Donald Trump's trade war continues, consumers are worried about higher prices and potential layoffs, while businesses are sweating over higher import costs and waning foreign demand for their products.

They are dynamics that economists say could throw the US into recession. They're also likely to have an outsize impact on certain local economies more exposed to international trade. That would be bad news for home values in those places at risk.

But there are pockets around the country that are more shielded from tariffs than others.

Tariff impacts will likely vary by state, depending on how much of the state's GDP is comprised of exports to foreign countries, according to an analysis done by the National Association of Realtors (NAR).

"Less trade-dependent states tend to have more diversified service-based economies, and they've added jobs at a faster pace," Nadia Evangelou, a senior economist at the NAR, told Business Insider.

"In many of these states, job creation has attracted new residents and supported steady housing demand. That can drive up both home construction and price appreciation over the long term," Evangelou added.

Evangelou categorizes a state as trade-reliant if exports account for more than 7% of its total GDP. Some states, like Louisiana, have over 25% of their GDPs tied up in exports to countries like China and Mexico. On the opposite end of the spectrum, only 0.4% of Hawaii's GDP comes from foreign exports.

States with smaller export shares are more shielded from global supply chain disruptions. These states usually have more stable job markets as their economies tend to focus more on services in finance, tourism, or entertainment. This, in turn, increases housing demand in urban and suburban areas, Evangelou said.

The gap between high and low trade-reliant states isn't just present in times of economic crisis — historically, home prices have appreciated faster in states with lower international exposure. Over the last 30 years, home prices in low trade-reliant states rose 291% on average, while high trade-reliant states only gained 237%, according to the NAR.

If you're thinking of moving and buying a house this spring, or if you're wondering if your home's value will take a hit from the trade war, take a look below at the top 9 states that are most insulated from the trade war, according to the NAR. Washington, DC, while not a state, also made the list.

Hawaii

Exports as a % of GDP: 0.4%

Washington, DC

Exports as a % of GDP: 1.5%

Colorado

Exports as a % of GDP: 1.9%

South Dakota

Exports as a % of GDP: 2.8%

Virginia

Exports as a % of GDP: 2.8%

Oklahoma

Exports as a % of GDP: 2.9%

Montana

Exports as a % of GDP: 3.1%

Maine

Exports as a % of GDP: 3.1%

Idaho

Exports as a % of GDP: 3.3%

West Virginia

Exports as a % of GDP: 3.3%

• One category of creator merch is feeling the pinch of Trump's tariffs more than others: plushies.
• Some merch companies are seeking to transition their plushies business away from China.
• Creators are worried they could upset their fans if they have to raise prices.

Rachel Reichenbach is stressed out about tariffs.

The artist and content creator sells frog pins, plush toys, and other amphibian-themed items to fans.

Her plushies are made in China, which means they could soon become much more expensive to sell in the US due to recent tariffs and rule changes instituted by the Trump administration. If she raises the cost of her green and blue plush frogs to cover tariff fees, they may become too pricey for her audience.

"No matter how cute they are, people are only going to be willing to pay a certain amount for things," said Reichenbach, who has around 117,000 Instagram followers and 670 Patreon subscribers. "My products, they're not a staple. It's going to be the first to be cut from most people's budget."

The US-China trade war is hitting the influencer economy unevenly. Influencers sell a variety of items to make money off their fame, whether that's sweatpants, keychains, or chocolate bars. Some products, like T-shirts or food, can be easily manufactured in the US, which could shield them from tariffs. Plushies, however, tend to be made in China, where tariffs on toy imports are now set at 145%.

The increase hasn't hit for some creators yet, but they're bracing for higher costs.

Plushies can sell for anywhere from $15 to upward of $30, several creators and suppliers told Business Insider. Creators are worried they could upset fans if added fees force them to raise prices. The market for influencer plushies, popular among anime illustrators, YouTube channels with animated characters, and VTubers, could crash in the coming months if creators back away from selling stuffed toys in favor of lower-tariffed items.

"For some creators, plushies are far and away the bestseller," said Walker Williams, cofounder at the creator e-commerce platform Fourthwall. "They're really collectible, they're fun, they're unique, and so for a good number of creators, plushies are 90% plus of their sales."

Warren James CEO Saurabh Shah told BI that plushie sales are a "close second" to apparel for the creator merch company, which works with creators like Hasan Piker and Tana Mongeau.

Why finding plushies outside China is challenging

Influencers and their business partners lean heavily on China for plushies because of the country's manufacturing efficiencies, executives at creator merch companies told BI.

China became a plushies hub because its factories are colocated and can easily work together, said Ronak Trivedi, CEO of the product manufacturing platform Pietra. He said cities like Dongguan and Yiwu have "extremely robust economies around plushie production."

There are other places for plush toy manufacturing outside China, including Vietnam. Companies make plushies in the US and Australia, for example, but they can be expensive due to labor costs. Factories outside China or Vietnam are also less equipped to work with influencers on small batch orders, and creators tend to release products in limited drops.

"If you don't want to produce 20,000 of them, basically you have to go to China or Vietnam," Williams said.

Being price conscious is a must for influencers who want to avoid upsetting fans

Some creators are worried about setting high prices on plushies because they think it will come off as greedy to their fans.

"When things are crazy in the world, I think creators are a little more reluctant to go and sell something directly to their fans," Williams said. "They don't want to put their audience under pressure to buy things."

Warren James is raising prices — to the tune of less than 10% across most categories — meaning a $35 plushie would now be about $38, Shah said. The company and creators are also eating some of the costs, as are its suppliers and shipping partners.

"We're being surgical about it," he said of the increases. "For us, merch is about fan connection — it should still feel accessible."

Other merch companies like anime creator product company Noir are anticipating much steeper price increases tied to tariffs that could more than double the cost of plushies for their customers.

Noir isn't shying away from letting customers know why prices are going up. The company plans to list price increases for plushies as a Trump tariff fee in the checkout cart.

Other creators have been shouting out potential price hikes in posts on platforms like Instagram and X.

"Transparency is really important for the fans to feel like they know why we're doing what we're doing," Cary Huang from the YouTube channel Jack n Jellify told BI.

Influencers and their partners are racing to find workarounds

The plushie price apocalypse hasn't fully hit. Some creators are still benefiting from the de minimis loophole that exempts from tariffs smaller orders shipped from China. But the administration is stripping that exemption away beginning on May 2.

Still, influencers and their suppliers aren't sitting idle. Some are rushing to get as many shipments into the US as possible before the exemption is removed. Others are considering sourcing their plushies from Vietnam if Chinese suppliers become unviable.

Shah said Warren James began exploring factories there across all categories after the Biden administration signaled tariff increases last year, and it's now doing test production runs. It is modeling plans to bring about half of its business in China to Vietnam.

Other merch companies are thinking on their feet.

Killer Merch COO Mark Bubb said more partnerships could help more players in the relatively nascent space succeed. One example could include various entities coming together "to give a decent amount of business to a small manufacturer that would help them scale."

Other creators may eventually move away from plushies if they become too expensive to produce.

"I do think that creators are going to go for products that are more made in the USA," Williams said. "A lot of creators are going to say, 'Hey, I'm not looking to pay 2.5 times the price on a plushie.'"

Oliver Gilpin, CEO of Telos Media, which runs animated YouTube channels like Solarballs and MrSpherical, said the company may prioritize playing cards over plushies because it has a smaller price markup on its plush toys.

"With tariffs starting, it really hits low markup businesses and products," Gilpin said.

Of course, abandoning plushies isn't an option for everyone.

"The type of product really matters," Jack n Jellify's Huang said. "You can't just swap out a plushie for a jigsaw puzzle."

• President Donald Trump has hit out at Fed chair Jerome Powell for not cutting interest rates faster.
• Fresh fears about the central bank's independence hit stocks, bonds, and the dollar on Monday.
• Wall Street figures said Powell might be Trump's scapegoat, but removing him could backfire badly.

President Donald Trump has once again blasted Federal Reserve Chair Jerome Powell for cutting interest rates too slowly and warned he could remove him from his post. The latest threat to the central bank's independence sent more shockwaves through markets.

Piling those fresh worries on top of tariff woes meant the "sell America" trade was in full force on Monday with US stocks, Treasurys, and the dollar all dropping.

The S&P 500 fell 2.4%, the dollar slid to its weakest level since 2022, the 30-year Treasury yield rose by about 10 basis points to 4.9%, and gold touched a record $3,500 an ounce as investors piled into the haven asset.

Here's what big Wall Street voices are saying about Trump's feud with Powell.

Jeremy Siegel: Powell may be Trump's 'scapegoat'

If the Fed doesn't cut rates in June, Powell "risks not only deepening a potential downturn, but also becoming the scapegoat for it," Jeremy Siegel said in his weekly WisdomTree commentary on Monday.

The finance professor known as the "Wizard of Wharton" said he expected the president to "increasingly blame the 'too slow' Powell for any downsides that materialize from Trump's policies."

Siegel added that Powell "may be technically secure in his position, but that doesn't mean he's insulated from blame."

Mark Haefele: Faith in the Fed is in danger

Removing Powell before his term ends in May 2026 "could call into question the ability of the central bank to set interest rates without political interference, and hence the outlook for price stability," Mark Haefele, the chief investment officer of global wealth management at UBS, said in a Tuesday note.

Haefele and his team said markets are "likely to be sensitive" to any signs that the White House intends to expel Powell or "replace him with a more 'malleable' candidate" once his term ends.

Liz Ann Sonders: Removing Powell could send rates higher

Ousting Powell and installing a more compliant Fed chief would undermine the central bank's vital independence, Liz Ann Sonders, the chief investment strategist at Charles Schwab, said on "Market on Close" on the Schwab Network on Monday.

In that scenario, "any move by the Fed to preemptively start easing policy aggressively" that doesn't fit its mandate "might not have the intended effect of boosting growth or boosting confidence," Sonders said.

It could even push long-term bond yields higher, "defeating the purpose of a lot of this," she cautioned.

Jim Reid: Powell's colleagues could revolt

Powell has a big say in Fed decisions, but monetary policy is decided by majority vote "so removing Powell could lead to increased pushback from other members against pressure on the Fed to deliver easier policy," said Jim Reid of Deutsche Bank in a Tuesday note.

Reid and his team added that investors are concerned the US may lose its credibility as a country with an independent central bank whose monetary policy isn't dictated by politics.

Nouriel Roubini: Trump's threats are an 'own goal'

"Trump is shooting himself in the foot with this talk of firing Powell," Nouriel Roubini, a professor emeritus of economics at NYU Stern known as "Dr. Doom," said in a X post on Monday.

Roubini called it "a repeated own goal" as the chatter has hit stocks, bonds, credit spreads, and the dollar. He said that even if Trump succeeds in firing Powell, it would be a"totally Pyrrhic victory as the result would be a de-anchoring of inflation expectations and higher bond yields."

If Trump is planning to scapegoat Powell for higher inflation and slower growth, it's "not clear that this clumsy blame game will fly even with the MAGA base whose sentiment is heading south, let alone with financial markets," Roubini said.

Paul Krugman: Trump is making Powell's job harder

"What makes Trump's attempt to bully the Fed especially ominous is the fact that the Fed will soon have to cope with the stagflationary crisis Trump has created," Krugman said on his Substack.

The former MIT and Princeton professor and a Nobel Prize winner said Powell will soon have to choose between raising rates to fight inflation, or cutting them to fight recession.

The president's threats had complicated that decision, Krugman said. "Trump has made Powell's dilemma even worse with his attempted bullying, because a rate cut would be seen by many as a sign that Powell is giving in to avoid being fired."

Michael Every: Trump isn't alone in questioning the Fed

Trump's criticism of Powell as "Mr. Too Late" and a "major loser" represents a "comic-book punch" on the Fed chair, said Michael Every of Rabobank in a Tuesday note.

But the president isn't the only person frustrated with the Fed, Every continued.

"To be honest, Trump is saying many of the same things that many of those covering the Fed in markets are too — just far less politely; and very inappropriately in the eyes of those same commentators," Rabobank's global strategist said.

Peter Schiff: Trump wants a 'loyal soldier'

Peter Schiff, the chief economist at Euro Pacific Asset Management, outlined what Trump may seek in Powell's successor.

Trump "will likely nominate the most dovish replacement to ever chair the Fed," he said in a weekend X post.

The president's pick will be a "loyal soldier willing to sacrifice the dollar and create as much inflation as needed to monetize exploding debt to keep interest rates artificially low," Schiff added.

• Some housing markets might be hit harder than others under Trump tariffs, according to the NAR.
• More trade-reliant states will see bigger disruptions to their local job markets and home prices.
• Here are the 10 most vulnerable housing markets.

While economists agree that Trump's tariffs will raise prices across the board, the trade war will have different impacts on local economies — all the way down to how their housing markets behave.

That's because certain areas of the US rely on industries more exposed to global trade than others. With countries around the world placing retaliatory tariffs on the US — effectively reducing foreign demand for American products — areas producing those goods suffer. States that are more trade-reliant experience larger job market fluctuations than states with more domestic industries, which impacts homebuying activity.

"When we talk about trade, most people think that it's something that happens at the national level, but in reality, it plays out very differently from state to state," Nadia Evangelou, a senior economist at the National Association of Realtors (NAR), told Business Insider. "By looking at where trade is happening and how much each state relies on it, we can better understand how sensitive certain states might be to global disruptions like tariffs."

Take Louisiana, for example, which the NAR deems to be the state with the highest trade reliance, with 26.5% of its state GDP coming from exports. Evangelou considers states with an export-to-GDP ratio above 7% as highly trade-reliant.

Energy and chemicals are Louisiana's top industries, and China, Mexico, and the Netherlands each receive over $5 billion in Louisiana products. Antagonistic trade relations with China and Mexico would presumably have a negative impact on the state's economy and job market, potentially discouraging homebuyers from moving to the state and hurting the incomes of prospective homebuyers already there.

Wondering if you live in a state highly reliant on trade? Listed below in descending order are the 10 states with the highest level of exports as a percentage of GDP.

1. Louisiana

Exports as a % of GDP: 26.5%

2. Texas

Exports as a % of GDP: 16.8%

3. Kentucky

Exports as a % of GDP: 16.3%

4. Indiana

Exports as a % of GDP: 11.4%

5. South Carolina

Exports as a % of GDP: 10.9%

6. Oregon

Exports as a % of GDP: 10.3%

7. Michigan

Exports as a % of GDP: 8.7%

8. Mississippi

Exports as a % of GDP: 8.7%

9. New Mexico

Exports as a % of GDP: 8.5%

10. Alaska

Exports as a % of GDP: 8.5%