These days, every single activity belonging to small businesses and the stock market in the U.S. is being shaken primarily by the very aggressive tariff policies of President Trump. As midnight sets the deadline to come up with new steep tariffs on almost all the imports, panic spreads across Wall Street like wildfire. Right after opening, for example, the Dow started plummeting by as much as 1,000 points, continuing more than just one swift decline from the previous day when they recorded their worst sell-off by then since the early pandemic days. Businessmen are not the only ones in a buzzing situation, because even small businesses say they are being pushed to the wall.
Massive tariff hikes raise alarm
The new tariffs will really change the face of US trade. President Trump has made it a law that at least a minimum 10% tariff be charged on virtually anything imported into the country, with tariffs going higher for imports from China, Japan, and the European Union. Compared to last year, these figures to an increase of nine times. Meanwhile, Scott Horsley of NPR has pointed out that businesses now have to undergo the double burden of higher import costs and economic uncertainty.
According to Commerce Secretary Howard Lutnick, the president doesn’t have any intention of changing his mind about it, but called it “reordering of global trade.” However, experts warn that this is indeed a path that will isolate the US economically and lead to towering prices and slow growth.
Small businesses feel trapped
According to small businesses like Sarah Wells of Virginia, who sells maternity bags and accessories, immediate and severe consequences result. All her products are manufactured in China. Recently, a shipment arrived just as tariffs doubled, meaning she had to bear some very unexpected costs in paying $15,000 to release her goods. “We’re getting screwed,” she says without prevarication.
Alina Selyukh has obtained comments from small retailers across the country through NPR. Quite a number say they feel like collateral damage. Most of them don’t have clout anywhere near that of such giants as Walmart, so they cannot pass on the costs of tariffs to the consumer. All options-including reducing output, laying off workers, and raising prices-are possible, but none would be palatable. “Businesses will close,” says Wells.
Rising costs, lower confidence
These tariffs would also include the regular people. These would include toys, clothes, fruits, shoes, and other items, which will eventually experience price hikes. It means more dollars into the coffers of the government, but critics say that this is regressive. While the benefits of the tax cut go to the wealthy, the working-class consumers who shop at big-box retailers primarily shoulder the impact of tariffs.
As Horsley puts it at NPR, the “reverse Robin Hood” would trade general taxes for a very narrow surcharge that most Americans wouldn’t escape.
No easy alternatives
While the administration claims the tariffs will help bring manufacturing back to the U.S., small businesses say domestic production isn’t a realistic solution. At a National Retail Federation event, nearly every business owner said they tried to source goods domestically—but simply couldn’t.
Danny Reynolds, who owns a clothing boutique in Indiana, explained that American-made wedding gowns are three times as expensive as imports. “As a smaller retailer, our hands are kind of tied,” he said.
You don’t want to miss this: This is the first economic fallout from Trump’s tariffs, with one major company laying off hundreds of U.S. employees
Uncertain future
As global markets brace for retaliation—China has already imposed a 34% tariff on U.S. imports—small business owners are preparing for the worst. Many are scaling back operations, cutting new investments, and hoping to survive the storm. But with no end in sight, the future of America’s small business backbone remains in serious doubt.
