Triple Squeeze: How Tariffs, Fuel, and Rates Are Hurting US Firms

American companies face rising costs from tariffs, expensive fuel, and higher interest rates — forcing price hikes and tough choices.

American businesses are being hit from three directions at once, and it's changing how they operate — and how much you pay for their products.

The "three-way squeeze" explained:

Tariffs (taxes the government puts on goods brought in from other countries) are making raw materials and imported parts more expensive.
High fuel prices (partly due to the Iran war) are raising the cost of making and shipping goods.
Rising interest rates (the cost of borrowing money) make it pricier for companies to fund their operations and grow.

Take Allen Eden, who runs a 25-person saw-making company in Iowa. One small bracket he needs more than doubled in price this summer — jumping from $42 to $87. He's now stockpiling parts because he fears he won't be able to get them later. "It's awful," he said.

Why interest rates matter here: To fight inflation (when prices across the economy keep rising), the Federal Reserve (America's central bank, which controls interest rates) raised rates for the first time in three years — and hinted at another hike. Higher rates make borrowing more expensive right when companies are already struggling with rising costs.

Smaller companies suffer most. They tend to borrow money for shorter periods, so rate increases hit them faster, according to JPMorgan. Manufacturers, trucking companies, and real estate firms are especially exposed.

Big names feel it too:

Home Depot said rising energy and material costs will completely cancel out $730 million it expected to get back from tariff refunds.
Eastman Chemical's CEO said companies are raising prices "faster than I've ever seen in 20 years."
Lucerne International, an auto parts maker, stopped US manufacturing and scrapped plans for a $50 million Michigan factory, blaming tariffs for "tearing holes" in its supply chain.

The bottom line: When companies face higher costs, they usually pass at least some of them on to customers through higher prices — which means everyday shoppers may feel the pinch too.

This is an AI-generated summary. Read the original article at: https://www.cnbc.com/2026/09/20/tariffs-fuel-prices-and-interest-rates-squeeze-us-companies.html