Key Takeaways:
- Small businesses are struggling to cope with rising costs due to trade wars.
- Some companies are cutting costs instead of raising prices.
- Owners fear the unpredictable tariffs could threaten their businesses.
- Families and employees are feeling the impact of these changes.
The world of small business is getting more complicated because of President Trump’s trade wars. While big companies like Home Depot and Walmart are figuring out ways to deal with higher costs, smaller businesses are facing tough decisions. Many are trying not to pass extra costs on to their customers, but this is getting harder every day.
The Cost of Trade Wars
Small business owners are feeling the heat as tariffs, or taxes on imported goods, keep changing. These tariffs make it more expensive to buy things from other countries. For example, Jeremiah Chamberlain, who runs a 3-D printing business with his wife, has had to make some tough choices. He used to buy materials from China, but when prices went up, he switched to suppliers in America and Canada. Now, he can’t offer as many colors for his toys.
Chamberlain says, “We started this business to make affordable toys for families. The only reason I’d raise prices is if I had no choice but to close the business.”
Cutting Costs to Survive
Some small businesses are cutting back on expenses to avoid raising prices. Dan Jones, who owns a clothing company called Jeans Day Apparel, had to let go of his part-time workers. He and his wife are now doing more work themselves. “Labor is the easiest place to cut costs,” Jones says. But this means they have less time for their family.
Jones admits, “We don’t know what the future holds, and that’s what’s so scary.”
The Struggle to Plan Ahead
Tariffs are changing so often that it’s hard for small businesses to plan. Richard Trent, who works with the Main Street Alliance, says, “When tariffs jump from 10% to 140% and then back down, it’s impossible to plan for the future.” Small businesses already work with very tight budgets, and constant changes make things even harder.
Families Affected by the Crisis
Amelia Morgan runs a business that sells trophies and plaques. She says her costs have gone up by 20%, and she can’t keep absorbing these extra costs forever. “We have people counting on us to pay the mortgage and buy groceries,” she says. “We have to stay profitable to survive.”
A Future in Doubt
The trade wars are creating a lot of uncertainty for small businesses. While some are trying to cut costs, others are limiting their options. For many, the biggest fear is not knowing what will happen next.
As the tariffs continue to change, small businesses are left to wonder if they can keep going. For now, many are doing their best to stay afloat, but the future remains unclear.