US businesses brace for tariffs, expect inflation

Local businesses in the US are likely to take a hit from the taxes Trump imposed on its three biggest trading partners. The Penny Ice Creamery in Santa Cruz, California, has had to hike the prices of its ice cream repeatedly in recent years amid an inflationary surge. “I feel bad about always having to raise prices,’’ co-owner Zach Davis told the AP. “We were looking forward to inflation coming down, the economy stabilising in 2025 … Now with the tariffs, we may be back at it again,” he added.