President Donald Trump's ongoing tariff policies are sending shockwaves through small business owners who are already struggling with slim profit margins.
On Monday, Trump unveiled a 25% tariff on steel and aluminum, with promises of even more import duties in the future. Just last week, the administration imposed a 10% tariff on goods imported from China.
Sandra Payne, owner of Denver Concrete Vibrator, which imports steel and other materials for her business, is feeling the strain. The company manufactures tools for settling concrete and other industrial products, with much of its steel sourced from China, as well as Canada and Mexico.
“Small businesses operate on very narrow margins, so a 25% price increase on any product is going to hurt,”
Payne explained. “We can’t just keep raising our prices whenever costs go up. We are losing a lot of money.”
Although tariffs on Mexican and Canadian goods have been temporarily postponed, they could be reinstated at any time. As a result, small business owners are left scrambling to develop strategies to deal with the potential increase in costs.
In Canada, Julie Bednarski-Malik runs Healthy Crunch, a snack company based in Mississauga, Ontario, selling products in both Canadian and U.S. retail stores. She said she might be forced to raise her prices, but she’s holding off for now while the full scope of the tariffs remains unclear.
“While I know these tariffs are coming, we’re still waiting to understand the specifics — when they will start, how much they’ll be, and what products will be affected,” she said. “We hope that the U.S. and Canada can work together to reach a resolution since we are such close allies and trading partners.”
Bar Zakheim, owner of Better Place Design & Build, a San Diego-based contracting business specializing in accessible dwelling units (ADUs), is particularly concerned about rising lumber costs.
“Lumber prices have been increasing over the past few years due to supply chain disruptions and wildfires, and a significant portion of our lumber is imported from Canada,” Zakheim noted.
“If these tariffs go through, it’s going to drive up our costs even further — all while we’re already contending with a high-priced housing market and rising interest rates.”
Payne echoed Zakheim’s concern, explaining that the impact of tariffs will have a cascading effect.
“I sell to other businesses, not directly to consumers. So, whatever happens to us will ripple through the entire supply chain, this is going to affect everyone down the line.”
ORIGINAL ARTICLE FROM TIMES UNION : HERE
Comments