Impact of Tariffs on U.S. Small Businesses

SOURCE www.npr.org
Small business owners in the U.S. are struggling to cover new costs from tariffs on imports, with some contemplating closing down due to the impact on profit margins and inability to pass all costs to consumers.

Key Points

  • Small business owners may have to raise prices or scale back operations due to tariffs on imports
  • U.S. manufacturers struggle to meet the scale and cost requirements of small business orders
  • Existing American-made products are often more expensive than imported alternatives

Pros

  • Potential to jump-start American manufacturing

Cons

  • Increased costs for small business owners
  • Difficulty in passing costs to consumers
  • Challenges in sourcing products domestically