In a shocking turn of events, McDonald’s has announced a drastic pullback from the U.S. market, citing crippling tariffs imposed under the Trump administration’s America First 2.0 policy. The fast-food giant’s CEO, Chris Kempczinski, revealed this morning that all U.S. operations will temporarily shut down as the company grapples with a staggering 15% drop in shares and a 1% decline in global sales—the first decrease since 2020. This unprecedented move threatens to wipe out 60,000 jobs and $5 billion in revenue in a matter of weeks, sending shockwaves through Wall Street.
The McDonald’s crisis stems from soaring costs due to tariffs that have sent beef prices skyrocketing by 43% and packaging costs up by 50%. As the price of a Big Mac climbs to $5.29 in the U.S.—nearly 50% more than in China—customers are fleeing to cheaper alternatives. The fallout is immediate and severe, with a class-action lawsuit filed by 1,700 franchise owners accusing the government of strangling supply chains and forcing prices beyond consumer reach.
The ripple effects extend far beyond McDonald’s. With 12,000 stores at stake, local economies are bracing for a collapse. The Teamsters union has warned of impending strikes as thousands face layoffs, while small businesses tied to the fast-food supply chain teeter on the brink of bankruptcy. The food processing sector has already seen a 245% spike in layoff notices, raising alarms about food security for low-income families.
As McDonald’s shifts production overseas to dodge tariffs, questions arise about quality control and the future of American jobs. The once-mighty fast-food titan now stands at a crossroads, forced to gamble its reputation in a desperate bid for survival. With other fast-food chains eyeing similar exits, the future of affordable dining hangs in the balance. The question looms: will Washington heed the warning before it’s too late? As McDonald’s takes this drastic step, the stakes have never been higher.