'Profits go poof': U.S. businesses reportedly waking up to risk of Trump's plans

Axios is reporting that some American businesses are waking up to the possibility that President-elect Donald Trump isn't just bluffing with his plans to slap massive tariffs on all foreign-produced goods.

The report begins by noting that business leaders in recent weeks have been cozying up to Trump more because his planned tariffs "could make their profits go poof."

In fact, writes Axios, Trump's proposed 25 percent tariffs on all Canadian and Mexican goods, as well as his proposed 60 percent tariffs on all Chinese goods, are high enough that "they could entirely wipe out the annual profits of some large companies, per an analysis from consulting firm PWC."

Of course, these companies will not simply stand idly by as their profit margins erode but will rather jack up prices on their customers, which will lead to a resurgence of inflation.

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Chris Desmond, a PWC principal for customs and international trade, tells Axios that the potential impact these tariffs will have on businesses and consumers should not be underestimated.

"This is one of the biggest events in my career to impact so many U.S. multinational companies that deal with property imports," explained Desmond, who also pointed out that products such as avocados could get price hikes even if they aren't grown in Mexico but simply pass through there on their way to the United States.

"That's messy," Desmond told Axios. "There's a need for guidance."