Small Business Owners Struggle as Tariffs Reshape Landscape
Small business owners across the United States are feeling the impact of soaring tariffs imposed by the government, leading to unforeseen financial challenges. In Arizona, for instance, Sara VanFleet, who runs DB Trucks in Glendale, faced substantial unexpected expenses due to increased tariffs on imported steel and aluminum. In June, President Donald Trump raised tariffs on these materials from 25 percent to 50 percent, forcing VanFleet to wire an additional $25,000 just to import a steel water tank manufactured in Mexico.
VanFleet’s troubles did not stop there. In August, further tariffs on steel derivatives increased the total tax to an astonishing 97.5 percent for a shipment already en route from China to Los Angeles. “It’s very nerve-racking, and it’s very difficult to navigate it when you’re not a deep-pocket big company,” VanFleet expressed, highlighting the struggles faced by small businesses that often operate on thin margins.
Challenges of Sourcing Materials
The tariffs have led to a significant increase in costs, impacting the pricing of products across various industries. VanFleet noted that standard water trucks, which previously sold for around $40,000, now cost between $70,000 and $80,000. She has shifted her focus to corporate clients, as individual consumers can no longer afford her products.
Similarly, Laide Olambiwonnu, the owner of Pickytarian, an eco-friendly dinnerware e-commerce business based in Los Angeles, has struggled to find U.S. suppliers willing to produce her desired products. “When I was launching this business, I reached out to a bunch of factories in the U.S. to try to see if we can get this to be made in America, and everyone shut me down,” Olambiwonnu reported. As a result, she relies on materials sourced from Asia, further complicating her pricing strategy.
The unpredictable nature of tariffs has forced many small businesses to reconsider their operations. “We’re four years old and fighting to make it, and it’s just too much, too fast, too inconsistent,” VanFleet added. With margins eroding and costs rising, business owners are finding it increasingly difficult to maintain profitability.
Widespread Impact on Small Businesses
The situation is not unique to VanFleet. Paul Gallegos, who owns Cutbow Coffee in Albuquerque, New Mexico, reported having to raise prices by 25 percent due to tariffs on imported coffee beans. This increase has resulted in a 10 to 15 percent loss of customers. “There’s no coffee produced domestically, so every bean that’s roasted in America is imported,” Gallegos explained, underscoring the widespread ramifications of tariff policies.
In Southern California, Mike Perry, owner of Klatch Coffee, has raised prices twice this year, with additional increases likely on the horizon. The tariffs have added $4 to $5 per pound for coffee beans, translating to an increase of 20 to 40 cents per drink. Perry noted that despite these challenges, his business is expanding through a partnership with the supermarket chain Sprouts, demonstrating resilience amid adversity.
Others, like Amy McCord, who started a DIY flower company called Flower Moxie, have delayed projects due to rising costs. McCord has raised prices by 10 to 20 percent and adjusted her sales strategy to require bulk purchases, rather than selling individual stems. “The tariffs have really changed the game. It’s, overall, just hurting everything,” she stated, reflecting the sentiment shared by many entrepreneurs facing similar hurdles.
The collective struggle of these small business owners highlights the far-reaching consequences of governmental economic policies on local economies. As they navigate the complexities of tariffs and their effects on supply chains, the future remains uncertain, forcing many to weigh critical decisions about expansion and sustainability.
