Commonplace. org ^ | Nov 23, 2025 | Matthew Lynn Posted on by E. Pluribus Unum It was, by any measure, a lot of red ink. When Volkswagen announced its third-quarter profits at the end of October, the German auto giant said it anticipated heavy losses for this year. The reason? It is taking a 5 billion euro hit from tariffs imposed in the American market. Likewise, the German sportswear manufacturer Adidas warned of a 120 million euro hit to its earnings, in part because the levies its trainers now face in the United States, while Toyota warned of a $9 billion hit from tariffs. For anyone following the corporate earnings season over the last month, a clear theme has emerged from the giants of European and Asian industry: President Trump’s tariff regime is starting to significantly reduce their profits. But hold on. Weren’t we told that tariffs would simply be passed straight on to American consumers in the form of higher prices? That they were a tax on ordinary working people? Instead, it is already becoming clear that at least some of the costs are being paid by foreign conglomerates and even by foreign governments. When President Trump first unveiled his sweeping tariff regime on (the admittedly oddly named) “Liberation Day” back in April, the economic establishment went into a predictable meltdown. From the editorial pages of the Financial Times to the seminar rooms at Harvard, the verdict was unanimous: this was simply a tax increase by another name, and American consumers would have to foot the bill. The Peterson Institute joined the chorus in predicting disaster. True, the declarations were always hedged with plenty of academic caveats. But the overall impression was that tariffs would prove catastrophic for the American economy. And yet, several months into what amounts to the most dramatic shift in American trade policy in generations, the evidence is starting to.(Excerpt) Read more at commonplace. org . TOPICS: Business/Economy; Foreign Affairs KEYWORDS: Click here: to donate by Credit Card Or here: to donate by PayPal Or by mail to: Free Republic, LLC PO Box 9771 Fresno, CA 93794 Thank you very much and God bless you. 1 posted on by E. Pluribus Unum Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by.
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