New tariffs introduced by President Trump are causing uncertainty and cultural collapse inside startups and supply chain-dependent ventures.
The Smoot-Hawley Tariff Act of 1930 serves as a cautionary tale about the psychological and economic damage tariffs can cause, with recovery taking far longer than expected.
Tariffs create a perfect storm for cultural erosion in startups, leading to long-lasting impacts on culture, cohesion, and confidence within companies.
While some view tariffs as protectionism, for startups, isolation can be more of a risk than a shield, as it hinders growth and disrupts the interconnected ecosystem necessary for success.