US small businesses are getting crushed by Trump's tariffs
Since early 2024, President Trump's new tariffs have made it way more expensive for American small businesses to import goods—some are now paying up to 83% extra on items from China.
By August, the average US tariff rate reached its highest point in over 90 years, forcing many businesses to downsize or shut their doors.
More than half of US companies reported declining gross margins
Small businesses make up over 97% of US importers, so these tariffs are a big deal.
Many owners say they can't afford the higher costs or easily switch suppliers—Howard Miller's century-old clock shop and Jennifer Bergman's NYC toy store both closed because of this.
Sari Wiaz from Baby Paper shared that her costs jumped by 25%, but she couldn't just raise prices: "I can't just raise my prices by 25%. People won't pay that."
More than half of US companies reported declining gross margins as a direct result of tariffs, raising real worries about more closures and job losses if things don't change soon.