Fri May 09 18:16:19 UTC 2025: ## US Tariffs Push Small Businesses to the Brink

**Washington D.C.** – High tariffs imposed by the Trump administration are devastating US small businesses, forcing them to make drastic cuts and potentially pushing many to closure. The impact is widespread, affecting industries from apparel and food to manufacturing.

Wild Rye, an Idaho-based outdoor apparel company, is a prime example. Owner Cassie Abel faces $1.2 million in tariffs on a forthcoming shipment from China, a sum she cannot afford. This threatens to bankrupt her company within months, forcing her to freeze hiring, halt salary increases, and consider price hikes of 10-20 percent. Similar stories are emerging across the country.

The tariffs, intended to boost domestic manufacturing, have instead created a crisis for small businesses heavily reliant on imports. While Treasury Secretary Scott Bessent maintains the goal is to create high-quality jobs, the reality is widespread financial strain. Small businesses, employing 61.7 million Americans and contributing 43.5 percent to the GDP, are bearing the brunt of the economic fallout.

Brooklyn Delhi, an Indian food brand, and Anjali’s Cup, a single-origin spice and tea company, both rely on imported ingredients, making them vulnerable to the tariffs. They are exploring costly alternatives like sourcing domestic packaging to offset the increased import costs, but the impact is severe. Many are forced to consider discontinuing products or drastically raising prices – a move with potentially long-term negative consequences.

The US Chamber of Commerce has unsuccessfully lobbied for exceptions for small businesses. Meanwhile, legislative action seems stalled due to partisan gridlock. While some businesses have stockpiled goods to mitigate the immediate impact, the long-term viability of many remains precarious. The situation highlights the unintended consequences of the tariffs and the urgent need for policy solutions to support struggling small businesses. The recent economic downturn, including a fall in GDP and consumer confidence, exacerbates the problem, creating a perfect storm for many small businesses.

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