(AP)
Small business owners across the country are grappling with growing uncertainty as they try to stay afloat amid the ongoing impact of President Donald Trump’s trade wars and tariff policies. Unlike large corporations, which may have the resources to absorb or offset higher import costs, many small businesses are finding it increasingly difficult to keep their operations running without passing the burden onto their customers.
According to an NBC News report, major retailers like Home Depot have opted not to raise prices, while others like Nike and Walmart plan to increase some of their prices. But for many small businesses, the decision isn’t so simple.
“The whole point of it, when we went into the toy production, was to make a durable, affordable toy for families and children,” said Jeremiah Chamberlain, who runs a 3-D printing business with his wife. “Nothing’s going to make me raise prices unless it’s a matter of me having to shut the business down totally.”
Chamberlain was forced to sever ties with a Chinese supplier after tariff hikes pushed up the price of the bulk filament used in toy production. As a result, he’s had to reduce the color options available to his customers, relying only on American and Canadian vendors.
For many entrepreneurs, the uncertainty of the fluctuating tariffs poses a bigger challenge than the added costs themselves. “When you go back and forth from 10 percent to 140 percent to 30 percent, and now you’ve got a blanket ambient tariff regime, it is impossible to plan,” said Richard Trent, executive director of the Main Street Alliance. “Small-business owners are operating on such thin margins. The least that we could do is give them a modicum of stability.”
Dan Jones, co-owner of the clothing brand Jeans Day Apparel, said he had to let go of part-time student employees earning $12 to $15 an hour in order to manage increased expenses. “We have to be able to cut costs somewhere, and labor is the easiest place,” he explained. “We just don’t know what the future looks like. It’s the unknown that’s very scary.”
Amelia Morgan, who runs a trophy and plaque business, has seen material costs rise by 20 percent. “We’ve got people who depend on us to be able to pay the mortgage, be able to buy groceries, make car payments,” she said. “We have to make sure that we stay profitable.”
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