small business caused by new import tariffs
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Small businesses are hit hardest by tariffs, as they don’t have the cushion that large corporations do. Take a small furniture store that buys some woods or hardware in import—when tariffs drive up those costs, they can’t always take the hit. Burdening the customers with it all risks driving them away, but taking it on their own tightens already thinning margins.
In order to survive, small businesses are getting creative. Some are reconsidering their supply chains, sourcing locally even if it means changing their product lines. Others are negotiating harder with partners, or collaborating with other small businesses in order to make bulk buys and cut costs. Others are being straightforward with customers, explaining why prices are changing—surprisingly, honesty seems to breed loyalty.
It’s not easy by any means, though. For others, tariffs are a test of resilience and adaptability. People who can change quickly and find new ways to create value seem to prosper. For others, though, the higher costs are like a losing battle against forces well out of their reach.