How Tariffs Impact Small Businesses in the United States

Tariffs have long been a tool used by governments to protect domestic industries and level the playing field in international trade. But for small business owners in the U.S., these trade policies often present a double-edged sword—one that can either sharpen competitive edges or cut into profits.

When tariffs are imposed on imported goods, small businesses that rely on these products see costs rise almost immediately. Whether you’re sourcing raw materials, machinery, or finished goods, the added costs are rarely absorbed by suppliers—they’re passed on to you. For many small businesses, this triggers difficult decisions. Do you raise prices and risk losing customers, or absorb the costs and reduce profit margins?

The problem doesn’t end there. Tariffs can disrupt supply chains. Small businesses that rely on specialized suppliers from other countries may experience delays, shortages, or the need to find alternative vendors—an expensive and time-consuming process. These disruptions can force businesses to pivot quickly, often without the luxury of large cash reserves that bigger corporations have.

However, tariffs can also create opportunities. Domestic manufacturers may benefit from reduced foreign competition, giving them an edge to grow. If you’re in manufacturing or production, this could mean new customers or partnerships. But even this requires strategic planning.

As a small business owner, you can’t afford to ignore tariff changes. Evaluate your supply chain, consider diversifying suppliers, and monitor any shifts in policy that could impact your costs or customers. The businesses that stay informed and flexible will have the best chance to not only survive but thrive.

You'll wish you met me first when navigating challenges like these. Let’s talk if your growth is being slowed by rising costs.