As new tariffs are being imposed and re-upped by the Trump administration, many small businesses are taking a hit and having to front hefty costs when it comes to manufacturing their product and having it sent to the U.S. to be distributed.
President Donald Trump has recently imposed tariffs on a countless number of countries, with the main target being China. This was done with the goal in mind of having more goods produced in the United States and to create more jobs; but this can take years to come into effect and might not end up working out. Many people are calling these tariffs and the reciprocals from other countries an all-out “trade-war”, these tariffs are not just going to affect the U.S. and countries they are directly doing trade with, but they will (at some point) affect trade across the globe.
As of April 11, 2025, the U.S. has placed a 125% tariff on Chinese goods, on top of a pre-existing 20% tariff, for a total of 145% on Chinese imports. Their tariffs have not affected goods coming into the U.S. that passed through customs before the tariffs were placed.
There are a lot of consumer concerns when it comes to these tariffs, many people fear that the cost of goods will rise astronomically, and that frequently exported goods from China like electronics and clothing will become more expensive and as a result, less accessible. Many people are anticipating a rise in inflation that they are not ready to face and likely will not be able to afford.
The people who fear the most about the effects of these tariffs are those who own small businesses. Most small business owners who do not make their own goods have them made in factories overseas because of the level of professionalism and expertise in the fields of manufacturing. Those goods are then shipped to the U.S. for the business owners to sell, but the tariff on importing the commissioned goods will cause a large dent in profit that the business owners will have to face unless they place the burden of raising prices on their customers.
There have been complaints and concerns to be found all across social media from small business owners in the U.S. who have production based in a different country (namely, China). A good amount of small business owners have voiced that they might not be able to afford to purchase new shipments of their product because of the tariff uptick. Others have said that they won’t be restocking because they would not be able to afford to do so without offsetting the cost by raising prices, and they do not want to betray customers like that.
Small businesses account for around 50% of the private-sector employment in the U.S., and if these businesses can no longer afford to restock their goods, many people are either going to lose their jobs or take a pay-cut when they are doing the same amount of work they were doing before. Small businesses will not be able to handle these tariffs without burdening either employees or customers. Larger businesses and companies have more to fall back on and will be able to more easily stomach the cost of these tariffs, which will only help grow their monopolies when some small businesses eventually tank.
Even small businesses who want to keep supplying customers and can afford to move their production to the U.S. will have to wait a long time, production can not be started immediately and there will be a competition for space from other small businesses who are trying to do the same things. Small businesses usually do not have this sort of time, even a short pause can cause a loss in sales, savings, and potentially even shrink a customer base.
Things right now are unreliable for small businesses owners, they do not know if or when they are going to get their product, they do not know how much it is going to cost to get their products into the US, and they do not know if their pricing can continue to stay the same, and if those potential changes will lessen customer base and sales (despite a potential high price).
Consumers are even more likely to be weary when it comes to their purchases because of fear of an impending recession.
If small businesses are forced to start raising prices, consumers are going to be skittish when it comes to committing to a purchase from them. Small business owners do not know what to expect when it comes to their future income and potential customers, and with Trump frequently changing the terms of his imposed tariffs, they do not know how to predict their business model and profit margins.
Tariffs are going to affect both small business owners and consumers, and not in a positive manner.
There is no way to gauge how small business owners are going to cope and if the brunt of the burden will be on the employers or consumers, or even if small business owners will be able to continue with their businesses.
Small businesses do not have the same financial liberties as larger ones and these tariffs can reasonably wipe some of these businesses out in a way that they will never recover from.