Tariffs could put them under, some small business owners say

Small businesses across the United States are feeling the impact of President Trump’s unpredictable tariff policies, with many operators struggling to stay afloat. The baseline 10% taxes on imported goods, coupled with the looming country-based levies, have made it increasingly challenging for the country’s nearly 35 million small enterprises to conduct business as usual.

One of the biggest hurdles small business owners face is determining how to set prices that can absorb the additional costs of imported goods without driving customers away. According to a survey by the National Federation of Independent Business, 30% of small business owners plan to increase prices to offset rising costs, marking the highest share reported in over a year. This decision to raise prices is a necessary measure to combat the impact of tariffs, as trimming expenses, including reducing labor costs, is also being considered.

The repercussions of these tariffs are already evident in the job market. According to the Joint Economic Committee, small businesses with fewer than 10 employees have seen a decline in employment by 3% since President Trump took office. In contrast, there was a 1.2% increase in hiring during the first months of President Biden’s term, highlighting the strain that tariffs have placed on small business operations.

One small business feeling the pinch is Earth and Sky Floral Designs, owned by Shayai Lucero in Laguna, New Mexico. Lucero imports a significant amount of flowers from various countries to sustain her business, but recent tariff increases have led to a sharp rise in prices. The cost of a single rose has nearly tripled, forcing Lucero to adjust her prices to cover the additional expenses. Despite her efforts to be transparent with customers, the uncertainty surrounding the future of her business looms large.

Similarly, Mike Roach, co-owner of Paloma Clothing in Portland, Oregon, is facing challenges due to tariffs on goods primarily manufactured in China and India. The abrupt implementation of tariffs has made Chinese goods nearly unsellable, posing a significant threat to the future of his business. Roach is grappling with the uncertainty of the situation and fears that this turbulent period may jeopardize the 50-year legacy of his store.

The impact of tariffs on small businesses is undeniable, with many owners struggling to navigate the uncertainty and financial strain imposed by these policies. As they grapple with rising costs and dwindling profits, the future of these enterprises hangs in the balance. The need for a stable and predictable trade environment has never been more apparent, as small businesses strive to weather the storm and emerge stronger on the other side.