On January 4, House Republicans met at Fort McNair and discussed their plans for a massive reconciliation bill. This will include tariffs.

Business leaders, you must immediately assess how tariffs will impact your operations and adapt your strategy today. When tariffs go into effect, consumers will see price increases for a year. Do not be deterred by this short-term effect; it is merely a bargaining tool with China. 60% tariffs on China will cut their exports by 6.5%, which will be devastating to the Chinese economy. The goal of President Trump’s tariffs is to bring America’s trade deficit close to zero. This will represent a massive rebalancing of the global economy.

For the next year, preparation is the best tool in your toolbox.