NEW YORK — The ongoing imposition of various tariffs by President Donald Trump is causing significant concern among small business owners who are already struggling with tight profit margins.
On Monday, Trump announced a 25% tariff on steel and aluminum, with indications that further tariffs on imports are forthcoming. Just last week, a new 10% tariff was placed on goods imported from China.
Sandra Payne, the proprietor of Denver Concrete Vibrator, a company that imports steel and other raw materials essential for manufacturing concrete settlement tools and industrial equipment, expressed her worries. Most of the steel utilized in her products is sourced from China, alongside materials from Canada and Mexico.
“Small businesses operate on extremely slim margins. A 25% hike in the cost of any product will have a detrimental impact,” she remarked. “We can’t simply increase our prices every time costs rise; this situation results in substantial financial losses for us.”
While tariffs on goods from Canada and Mexico have currently been paused, the possibility of these tariffs being enacted still looms overhead. Consequently, small business owners are left searching for strategies to manage the potential financial burden should the tariffs take effect later.
Julie Bednarski-Malik, who operates Healthy Crunch in Mississauga, Ontario, faces a similar predicament. Her snack products are sold in both Canadian and U.S. retail stores, and she hinted at a potential price increase based on how the tariff landscape develops. Nonetheless, she remains in a state of uncertainty regarding timing, tariff percentages, and the specific goods that may be affected.
“I understand that changes are imminent, but we still lack clarity on when they will happen, the rates involved, and which products will be impacted,” she stated. “We hope that the U.S. and Canada can collaborate to reach a resolution, considering our strong ties as allies and trading partners.”
Bar Zakheim, who oversees Better Place Design & Build in San Diego, specializes in constructing accessible dwelling units (ADUs) and expressed particular concern over rising lumber prices. “The costs of materials have already been climbing in recent years due to supply chain disruptions and wildfires. A significant amount of our lumber is imported from Canada,” he noted. “These tariffs will only contribute to rising expenses, especially when the housing market is currently expensive and high interest rates are already impacting our profits.”
Payne also emphasized that the consequences of these tariffs could severely disrupt businesses at various levels. “I supply to other businesses rather than directly to consumers. Thus, any changes that affect me will ultimately affect others along the supply chain. The repercussions will extend to everyone involved,” she concluded.
