Tariffs, Fuel Costs, and Rates Converge to Squeeze American Businesses

American companies are facing a triple threat of rising tariffs, surging fuel costs, and higher interest rates, forcing executives to make tough choices. For Allen Eden, owner of the Original Saw Co., this means holding onto extra inventory due to spiking prices for aluminum, steel, and essential parts.

A 'little bracket' used in his saw motors more than doubled in price this summer, surging to $87 from $42. It's a three-way squeeze for businesses across manufacturing, transportation, and retail: tariffs are making raw materials and goods more expensive, higher fuel prices are pushing up the cost of making and moving them, and rising rates are making it more expensive to finance inventory and equipment.

The Federal Reserve raised interest rates for the first time in three years, signaling another hike is possible this year. This makes it more expensive for businesses to finance inventory and borrow for growth at a time when higher input costs and record prices for diesel are squeezing margins.