in , ,

Trade Tariffs: The Impact on American SMEs

The longstanding global trade conflict initiated by President Trump in the United States remains ongoing in the midst of the daily onrush of news. Notably, there is a recent development in which the involved parties, namely the US and China, have temporarily eased their confrontational stances for a period of 90 days. This détente has resulted in tariff rates on the Chinese imports by the US coming down from an astounding 145% to a more digestible 30%, while China reciprocally reduced their tariffs on US imports from 125% down to 10%, as cited by Reuters.

Publicidad

Even with a considerable reduction in tariffs, the economic recoil continues to distress Americans who are confronting the ripple effects of enhanced costs initiated by these tariffs. A significant portion of this impact is bourne by small to medium enterprise (SME) owners, who are reliant on overseas providers for services and goods, and now need to grapple with these augmented prices.

Political leanings irrespective, the tariff-induced financial pressure is equally discernible among conservative and liberally-inclined business operators. This hard-hitting fact has led some of them to confront the consequential question concerning whether their vote for the tariff-endorsing Trump administration has generated any regret.

A microcosm of this shared sentiment can be found in the testimonies of various small business owners hailing from the ‘Make America Great Again’ camp. For instance, a retail apparel brand founder articulated his experience with the tariff upheaval, remarking that, while he voted for Trump in 2016 and beyond due to alignment with his national vision, the swiftness with which the tariff changes are being implemented are overwhelming. He expressed fear that the move from 25% to 145% tariffs on Chinese imports could trigger the collapse of many online retailers, including his own.

Seconding this sentiment is the proprietor of a paper straw producer, Boss Straw. The business owner, who talked to the Chicago Tribune, shared his concerns over Trump’s executive decision to support plastic straws, voicing that this has shifted his business from a profit-gaining to a deficit-ridden entity. Despite his personal predicament, the owner maintained that the President was ‘doing a pretty good job’ overall.

Publicidad
Sponsored

Another entrepreneur confessed they are feeling the pinch due to customers re-evaluating collaboration as a direct effect of Trump’s approach to international trade. This disillusioned business owner admitted that they are beginning to question if their repeated support for Trump — driven by the belief that his policies would be beneficial for business — was, in fact, a move that is driving their and many other businesses towards financial ruin.

A fourth SME operator shared: ‘We cannot endure these tariffs.’ Despite having voted for Trump, they were compelled to express their struggles, cautioning critics against dubbing them as liberal, an implication that voting for Trump should preclude such financial difficulties.

An owner of a real estate development enterprise shared their concerns about tariffs in a post titled ‘Conservative concerned about tariffs’. They fear that existing deals could face cost hikes significant enough to risk the viability of their business. They questioned Trump’s rationale of relying solely on the trade deficit for imposing tariffs, inviting others to share their views.

Publicidad

Meanwhile, an erstwhile ‘pro tariffs’ individual was forced to reconsider following the loss of about 30 clients who had cancelled engagements over a span of three weeks due to the controversial trade strategy.

Controversy over the Trump administration’s decision to halt federal assistance continued, as blocked by a federal judge. This gave rise to mixed feelings amongst Trump supporters, including one conservative voter whose wife operates a nonprofit that depends on Medicaid. The freezing of federal spending threatened the survival of this business over 90 days, prompting the voter to voice concern over the potential harm to many unrelated to the policy’s original aim.

As the timeline moved to November 2024, a business owner praised the concept of Trump proceeding with tariffs. However, in March 2025, their tone shifted, still showing support for Trump, but also urgently needing to revise their pricing strategy. They stated that they could not withstand the 10-25% tariffs due to already slim profit margins, exclaiming, ‘So guess what’s going to happen??’

In response to one of Trump’s social media posts, another supporter declared their love for Trump, but also expressed anxiety over the Canadian Tariff and its potential to bring an unfortunate end to their family business.

An individual recounted how their relationship with Trump-voting family members had become strained post-election, leading to cessation of communication, until recently. The family members included a farmer, who will refrain from growing crops for the season due to lack of access to undocumented workers who were willing to labor for long hours.

The succession of tariff-induced testimonies terminates with one from a Trump supporter, who voted for Trump while running a small business. This voter, while navigating the complexities of maintaining their business in these times, expressed a hope-filled prayer for all small business owners to make the right decisions as they work in the current climate.