It’s going to take a lot more than a spoonful of sugar to make this medicine go down.
Fans of the beloved classic Disney movie “Mary Poppins” might smile in recognition at the title of one of the songs from the film — assuming they haven’t been too busy weeping over their portfolios.
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Stocks have been deep-fried since President Donald Trump announced his massive tariff plan on April 2 and more recently doubled down on it.
Trump defended the sweeping tariffs on imports, which sent shockwaves through global markets, saying “sometimes you have to take medicine to fix something,” according to BBC News.
Speaking to reporters aboard Air Force One, he said jobs and investment would return to the U.S. to make it “wealthy like never before.”
Markets indeed are going to need some strong medicine to cure this bout of indigestion.
Stocks tumbled last week, following Trump’s announcement, and shares were zigzagging on April 7. The major indexes largely recouped from deep losses, and the Nasdaq Composite actually ticked up 0.1%.
Restaurant stocks have not been spared this distasteful diet and industry representatives analysts have sounded the alarm.
Michelle Korsmo, chief executive of the National Restaurant Association, warned that “applying new tariffs at this scale will create change and disruption that restaurant operators will have to navigate to keep their restaurants open.
“The biggest concerns for restaurant operators — from community restaurants to national brands — are that tariffs will hike food and packaging costs and add uncertainty to managing availability, while pushing up prices for consumers,” she added.
More Restaurants
Korsmo says restaurant operators know consumers are very sensitive to costs. In the past five years eateries have kept menu price increases to 30%, while their food costs have gone up 40%, she says.
The restaurant industry’s dependence on imported goods leaves it vulnerable to the new tariffs, the law firm Harris Sliwoski said in April 7 report.
“Restaurants across the U.S. rely on essential imports like food products, packaging materials, furniture, fixtures, and equipment,” the firm said. “Even restaurants that primarily rely on local ingredients will likely see costs rise as increased demand for domestic goods drives prices higher.”
