Businesses lobby against Trump’s tariffs with Grinch ads for Christmas

A lobbying group is running ads this Christmas shopping season that say President Trump’s tariffs are turning “holiday cheer into sticker shock.”

One 30-second ad from Tariffs Co$t U.S. shows a woman getting increasingly frustrated as she sees her items at the checkout counter get pricier due to the “new tariff price.”

At the same time, she sees a TV playing Mr. Trump’s comments about tariffs, including his recent admission that consumers “might be paying something” because of the levies. It also shows him saying kids can get by with “two dolls instead of 30 dollars.”

Other ads say tariffs will be the Grinch this holiday season.

Tariffs Co$t U.S. is among business groups lobbying against Mr. Trump’s aggressive use of tariffs in his second term.

Mr. Trump says tariffs, which are duties on foreign goods brought to U.S. markets, are needed to level the playing field with countries that sell loads of products to American consumers but don’t buy nearly as much from U.S. producers.

He says the tariffs create revenue, give him leverage in foreign negotiations and protect U.S. industries.

Yet the business groups, Democrats and some Republicans say the tariffs will backfire because the importer of record, often a U.S. entity, must pay the tariff to U.S. customs when goods are brought into the U.S.

A separate lobby, called We Pay the Tariffs, recently told reporters that small business owners are delaying retirement or taking out loans to make ends meet as they contend with new costs.

On its website, Tariffs Co$t U.S. says tariffs “may seem like a good idea at first,” but they raise prices, force small businesses to cut jobs and may prompt other countries to retaliate with new trade restrictions.

Mr. Trump is standing by his tariff system and says firms should set up shop in the U.S. if they want to avoid levies on their goods.

The president highlights billion-dollar investments by foreign drugmakers and countries such as Japan and South Korea in U.S. factories. He says the only reason they committed to the job-creating projects is because of the tariffs.

Nearly a third of imports are subject to tariffs that Mr. Trump imposed under a 1977 law that granted the president certain powers over international negotiations during economic emergencies.

But small businesses and blue states sued Mr. Trump, saying he swiped Congress’ taxing power when he used the law to impose blanket tariffs on other nations.

The Supreme Court is considering the case and is expected to deliver a decision by June.

A ruling against Mr. Trump would force him to issue some tariff refunds and consider other authorities to implement his tariff plans.