2025 Trump Administration Tariffs: Company Pushback, Exemption Petitions, and Industry Impacts

This report is based on The New York Times’ December 6, 2025 article about U.S. companies petitioning for tariff exemptions [1]. The Trump administration’s tariffs, which spiked from 2.4% to 28% earlier in 2025 before settling at 16.8%—the highest since the Great Depression [2]—have prompted major importers like Costco, Revlon, and Kawasaki to sue for tariff refunds [3]. Sector performance as of December 5, 2025, reflects this pressure: Basic Materials (-1.167%) and Consumer Defensive (-0.239%) declined, while Consumer Cyclical (+0.861%) showed modest gains [0].
Tariffs have disrupted multiple industries: manufacturing remains slow due to auto/vehicle part tariffs [4], chemicals firms have shifted business models amid falling capacity utilization [2], and retail companies have passed higher costs to consumers [3]. Agriculture received partial relief (200+ product exemptions) but still faces income impacts [5].
The competitive landscape has shifted: large companies with resources to sue or navigate exemptions outperform small businesses [6], while supply chains initially moved from China to Thailand before reversing due to tariff fluctuations [6]. Domestic suppliers may benefit from reduced foreign competition, but U.S. manufacturers relying on imported components face higher costs.
Recent developments include the U.S. Supreme Court hearing cases on tariff legality (under IEEPA) [7], extended Chinese product exemptions until 2026 [6], and eliminated UK pharma tariffs [8]. Tariff revenues ($257 billion in 2025) are insufficient to replace federal income taxes, undermining the administration’s proposal [9].

1. Policy Uncertainty Drives Instability
   : The combination of pending Supreme Court rulings and fluctuating exemption policies has led to supply chain delays and stock shortages, amplifying sector volatility [0,7].
2. Large-Small Business Divide
   : The ability of major corporations to sue for refunds or adapt supply chains widens the competitive gap with small businesses, which lack similar resources [6].
3. Systemic Legal Risks
   : A Supreme Court ruling against the administration could invalidate key tariffs, while a favorable ruling may enable further increases, creating long-term trade policy uncertainty [7].

• Short-term: Further tariff hikes (if Supreme Court rules in favor of the administration) could increase consumer prices and supply chain disruptions [7].
• Medium-term: Ongoing legal battles may prolong business uncertainty, delaying investment and hiring [3].

• Domestic suppliers in sectors like basic materials may gain market share from reduced foreign competition [0].
• Companies with adaptable supply chains or successful exemption petitions can mitigate cost burdens [6].

• Average U.S. tariffs stand at 16.8% (highest since 1935) [2].
• Major firms including COST, REV, and EL have sued for tariff refunds [3].
• Basic Materials (-1.167%) and Consumer Defensive (-0.239%) sectors declined on December 5, 2025 [0].
• The Supreme Court is reviewing tariff legality under IEEPA [7].
• Tariff revenues ($257B in 2025) cannot replace federal income taxes [9].
• Chinese product exemptions are extended until November 2026 [6].