U.S. tariff policy has undergone a dramatic transformation in 2025, reshaping the economic backdrop that investors will carry into the new year. Average tariff rates that once hovered near historic lows have surged above 15%, marking one of the sharpest shifts toward protectionism in decades. As 2026 approaches, market analysts widely expect these levels to remain largely intact, creating a new operating environment for companies—especially small-cap firms that are more sensitive to input costs and domestic demand.