Economists largely disapprove of tariffs, believing they increase prices for consumers. Small business owners who weathered Trump’s previous round of levies struggled to adapt, as many described limited options for absorbing cost increases compared to larger rivals. Trump is calling for steeper and more far-reaching tariffs if fully implemented, with his administration claiming that previous tariffs against China created jobs and spurred investment with no inflation. However, analysts believe Trump’s proposed trade policies could result in higher inflation and lower growth in the long term.
Many small business owners are worried about the impact of potential tariffs on their businesses. Brewer Chris Smith has been paying extra for tap handles and is accelerating the purchase of brewing equipment from China. Angie Chua, founder of Bobo Design Studio, manufactures her signature travel journal in China and fears the impact of 60% tariffs on Chinese goods. She may add a tariff surcharge to her products to show consumers the price increase. Wine shop owner Hadley Douglas predicts that tariffs will affect both domestic and imported goods and could drive smaller distributors out of business.
Not all businesses have the resources to stockpile inventory or accelerate purchases to mitigate the impact of tariffs. Joe Hakim, a bakery owner, is holding off on ordering Easter chocolates due to potential tariff price increases. Overall, small business owners are concerned about the uncertainty and unpredictability of Trump’s trade policies.
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