A CEO Now Warns Trump's Tariff 'Tsunami' is About To Wreck The U.S. Economy • FrankNez Media

On August 29, 2025, Sachin Shivaram, CEO of Wisconsin Aluminum Foundry, issued a dire warning about an economic “tsunami” unleashed by President Donald Trump’s escalating tariffs on aluminum and other goods, which have already forced layoffs and price hikes at his company.

In a Washington Post op-ed, Shivaram detailed how the trade war, intensified by Trump’s 50% tariffs on steel and aluminum, has disrupted his business and harmed workers, many of whom are Trump supporters.

As reported by Raw Story, the tariffs have driven up costs, slashed demand, and sparked fears of broader economic fallout, with other business leaders echoing concerns about inflation and job losses as the U.S. economy shows signs of weakness.

Impact of Tariffs on Wisconsin Aluminum Foundry

Shivaram, whose company employs roughly 1,000 workers, wrote that his business was thriving at the start of 2025, with strong demand for aluminum casings.

However, Trump’s tariffs, including a 50% levy on aluminum imports implemented on June 4, 2025, under Section 232 of the Trade Expansion Act, have tripled the Midwest Premium—the fee determining aluminum costs in North America—over the past six months, per The New York Times.

Non-aluminum inputs at the foundry have also risen by 7% in the last month, forcing price increases and layoffs across all plants.

“Our order rate is down 35 percent to 40 percent since the start of the year,” Shivaram noted, adding that other companies are seeing similar declines in demand.

“In such a situation, companies have a fiduciary duty to bring costs down, and the one surefire way to do that is layoffs,” he wrote.

Despite Trump’s claim that tariffs protect American workers, Shivaram highlighted that shareholders are shielded while workers bear the brunt.

Broader Economic Consequences

Trump Tariff policy — Donald Trump Tariff policies – FrankNez Media | U.S. News, Economy News, Economics, + more.

The tariffs, part of Trump’s broader trade war, have raised the average U.S. tariff rate to 18.6% as of August 2025, the highest in over 90 years, up from 2.5% when Trump took office.

A Yale Budget Lab study estimated that Trump’s policies, including a 10% universal tariff and higher rates on countries like China (145%) and Brazil (50%), add an average $1,300 tax burden per U.S. household in 2025.

J.P. Morgan Global Research warned of a 40% risk of a global recession, driven by these policies.

On August 25, 2025, Moody’s Analytics chief economist Mark Zandi issued a stark warning that nearly one-third of the U.S. economy is either in recession or at high risk of slipping into one, driven by President Donald Trump’s aggressive tariff policies and restrictive immigration measures.

Nat Bosa, a San Diego high-rise developer, called Trump’s steel and aluminum tariffs “absolute insanity,” noting they could stall future projects.

Sarah Piepenburg, a Minneapolis small-business owner, tearfully described on CNN how tariffs on imported olive oil, bottles, and shrink wrap have forced price hikes and delayed rent and payroll.

Walmart CEO Doug McMillon warned of “higher prices” for consumers, with some grocery items seeing 40% hikes.

Public and Political Reactions

Shivaram noted that many CEOs share his concerns but fear speaking out due to potential retaliation from Trump, who has a history of targeting critics.

On X, users like @BizToc amplified warnings of an economic downturn, citing Moody’s Analytics’ report that 17 states, representing 29% of GDP, are at risk of recession, as earlier reported by FrankNez Media.

Democrats, including Sen. Ron Wyden, labeled Trump’s tariffs “backward” and “chaotic,” while Rep. Rosa DeLauro called them a betrayal of his 2024 campaign promise to lower costs.

MAGA supporters, like @WarClandestine, defended the tariffs as protecting American jobs.

July 2025 job growth was just 73,000, with unemployment at 4.3%, triggering the Sahm Rule recession indicator.

Consumer spending, which drives 70% of the economy, has flatlined, and core inflation hit 2.8%, per The Economic Times.

With a potential government shutdown looming after Trump’s $4.95 billion pocket rescission of foreign aid, the administration faces mounting pressure as the 2026 midterms near.

Also Read: ICE is Now Recruiting Teens and Seniors in ‘Desperate Attempt’

For customer support or to report typos and corrections please get in contact via media@franknez.com.