How Trump’s New Tariff Fee Could Impact Small Business Prices: What You Need to Know

President Trump has announced plans to impose tariffs on imports from countries like China, Canada, and Mexico starting February 1. This has small businesses concerned about rising prices and potential disruptions in their supply chains.

For example, Howard Aspinwall, owner of Mellow Monkey, a home decor store in Connecticut, often faces questions from customers about why many products are made in China. He shows them the higher-priced items sourced from the U.S., which usually causes hesitation.

“Their wallet can only support buying from China,” he noted, emphasizing that customers are reluctant to pay more for local products.

With the tariff situation escalating, business owners are preparing for changes. Trump suggests a 25% tariff on goods from Canada and Mexico, along with a possible 10% tariff on Chinese imports. Many small business owners are anxious about how these tariffs could impact their operations.

Angie Chua, who runs Bobo Design Studio in Palm Springs, worries about the rising costs. She didn’t place early orders to avoid spending too much upfront. “If prices do rise, we might have to add a service fee that reflects the tariffs,” she explained transparently to her customers.

Trump has framed tariffs as a strategy to boost the U.S. economy. However, some economists argue that broad tariffs can lead to higher consumer prices and potential job losses. Advocates believe tariffs can encourage domestic production and better deal terms.

Richard Kligman, who owns Trump Superstores in South Carolina, hasn’t yet felt the impact of tariffs on his product pricing. He mentioned that suppliers have not raised prices and he has successfully shifted to more domestic suppliers during the pandemic.

On the flip side, some smaller businesses are preparing for potential price hikes. Paulina Hoong from Menmin Made placed a large order of tote bags to mitigate future costs. “I feel anxious about whether this stock will sell,” she admitted. Likewise, Rebecca Haacke, who runs River Dog Gear, has been stocking up on supplies, hoping to delay passing on higher costs to her customers.

The mention of tariffs is creating unease among many small business owners. Joe Hakim from Ackroyd’s Bakery in Michigan shared, “With our already thin margins, any tariff will further squeeze our business.” Meanwhile, Elizabeth Hudy from The Peach Fuzz remarked that people often don’t understand the burden of tariffs, which ultimately fall on businesses and their customers.

The effect of tariffs is a critical concern, especially for small businesses aiming to serve their communities while managing costs effectively.