A new report from Yahoo Finance suggests that while government shutdowns tend to end quickly and are taken in stride by markets, tariffs are beginning to have real negative economic consequences that are not yet fully reflected in macroeconomic data or corporate earnings.

Read also: Strong Economic Data Masks Growing Strains from 2025 Tariffs

Ford (F) CEO Jim Farley expressed frustration with the current tariff situation. “I mean, it’s frustrating because we’re the most American auto company, and we export the most, and yet, we have this $2 billion headwind, which prevents me from investing even more in the US,” Farley stated. He explained that imported parts, including wiring looms, fasteners, sensors, and brake components sourced from countries like China, Canada, Mexico, Japan, and South Korea, are subject to tariffs that are driving up costs, even for the popular F-150 truck.

Union Pacific (UNP) CEO Jim Vena commented on the state of the economy, noting, “So it’s interesting in that the consumer from everything we see is still strong at this point. They are still out there spending, they’re still out there moving.” He reported that Union Pacific’s business is up year over year, with volume strong and up by a few percentage points. However, he did observe that “we’ve seen some products being a little bit less [in demand], homes are not selling at the same rate as they were before,” indicating a slowdown in specific segments.

Detroit Mayor Mike Duggan highlighted the local impact of tariffs. “So in Detroit, we have three assembly plants, two Jeep plants, and a GM truck plant. Ontario, as you know, is right across the river. A lot of the parts supplies come from Canada. So when you put a tariff on Canada, you’re putting a tariff on cars made in Michigan. And we’re starting to feel that, and I hope the president gets that sorted out.” Duggan also reported that “Our corporate income taxes are down because they’re off of corporate profits. The tariffs have hit them.”

The report concludes that a groundswell of negativity is building that could surprise investors heading into 2026.

Source: IndexBox Market Intelligence Platform