Small businesses around the United States are concerned about the upcoming threats posed by the Trump Administration’s new tariff policy.
In the beginning of April 2025, the Trump Administration announced reciprocal tariffs: a declared ten percent minimum tax on imports from all countries. This would include nations who currently trade with the U.S.
Imposing these kinds of tariffs (a tariff is a form of taxation) could have detrimental effects on small businesses not only in the country, but all around the world.
“Other governments’ responses have varied, from China imposing 125 percent tariffs on US imports to more than 75 countries offering to negotiate, according to the US administration,” said McKinsey and Company.
With the implementation of this new tariff policy, many businesses are set for a major decline in production and service, which may result in them ultimately shutting down.
Ever since the outbreak of COVID-19 in 2020, “small businesses created over 70 percent of net new jobs,” said the U.S. Department of the Treasury.
Due to these heightened numbers of small businesses in modern times and technology, it would decrease opportunities for entrepreneurial spirit, and staying afloat through personal and business financials.
“The tariffs have impacted us so severely; we are currently restructuring. All of our wholesalers have postponed or canceled orders…There is no happy ending for us in sight if these tariffs stay in place [and] a 90-year old local company will be out of business,” said Derek Beaudoin, co-owner and COO of Annalee Dolls.
These small and medium sized businesses (SMBs) aren’t wealthy or have enough resources to maintain the new tarrifs in production. With the way things are going, the U.S. is headed for a massive local and national economic blow.
The reduction of virtual SMB salaries would just be another result of the tariffs taking place. The exchange of products and business affairs canceling would lead to downfalls of businesses and customers around the world, as well as negatively impacting local economies around the country, downgrading the U.S. economy as a whole.
Effects from these tariffs, even before they’ve officially been implemented, have taken an extreme upshot due to the fear of this potentially mangled economic crisis.
“When imports exceed exports, that subtracts from GDP and that was by far the biggest drag on growth in the first quarter. The difference between imports and exports subtracted from GDP by the most on records going back to 1947,” said CNN.
The GDP (Gross Domestic Product) gap essentially means that imports and exports were so big during that quarter, that it subtracted more from GDP than in any other quarter since 1947. This makes the trade imbalance a historically large change in almost 80 years.
Also being included with virtual SMBs and over-time changes, local mom and pop businesses are in serious danger to survive. Not only is the consequence of these shops failing a major factor, but also a new found generational tension within.
After decades of maintaining family owned businesses, with these new economic developments, newer generations don’t have the resources or reason to maintain their family’s legacy. This plays a negative role in local economies, and the honor of the working people.
Tariff fears and already current enactments have now caused immense drops in cargo and products, affecting these SBMs.
NPR has stated that, “…In the month or so since tariffs against Chinese goods ratcheted up – port officials [in Los Angeles] have been predicting a drop in cargo. This week, they announced it was down 35% compared to the same week last year.”
Many individuals view small businesses as an important part of American culture. The U.S. was made up of entrepreneurs, whether it’s Mom and Pop shops, or big time corporations. They are not just a huge part of the economy, but the ample backbone of it entirely.
With these new tariff implementations, its actions won’t hesitate to knock out a big part of the U.S. economy and the wellbeing of working citizens.
As the proposed tariffs await further political movement, small business owners across America are preparing for the possibility of yet another financial obstacle, unsure of what the future holds, but certain that any change won’t come without a cost.
