NEW YORK — The ongoing implementation of various tariffs by President Donald Trump is causing significant concern among small business owners, who are already facing challenging profit margins.
On Monday, Trump revealed a 25% tariff on steel and aluminum imports, with indications that more duties on imports could follow. Just last week, the administration enacted a 10% tariff on goods from China entering the United States.
Sandra Payne, who runs Denver Concrete Vibrator, sources steel and other essential materials to produce tools used in the concrete industry. Most of the steel her company utilizes comes from China, though materials are also imported from Canada and Mexico.
“Small businesses operate on very tight margins, and a 25% increase in costs for any product is detrimental,” Payne stated. “We can’t simply raise our prices every time our costs rise. As a result, we are facing significant financial losses.”
Alongside the tariffs on steel and Chinese imports, temporary tariffs on goods from Mexico and Canada have been paused, but there remains a possibility for their future enactment. Therefore, small business owners must devise strategies to cope with the financial implications of these potential tariffs.
In Canada, Julie Bednarski-Malik, who oversees Healthy Crunch, a snack manufacturer from Mississauga, is closely monitoring the situation. Her products are available in retail stores across both Canada and the U.S. She acknowledged that she may need to increase her prices depending on the direction tariffs take, but stated that she is currently in a holding pattern, awaiting clarity on timing and specifics.
“I understand that these changes are imminent, yet we lack precise details on when they will take effect, the percentage, and which commodities will be affected,” she explained. “We hope the U.S. and Canada can collaborate to arrive at a resolution, given our strong alliance and trading relationship.”
Bar Zakheim, who owns Better Place Design & Build in San Diego, a company focused on constructing accessible dwelling units (ADUs), expressed particular concern regarding lumber prices.
“The costs of these materials have already been escalating in recent years due to disruptions in supply chains and wildfires, with a significant share of our lumber sourced from Canada,” he stated. “These tariffs are poised to inflate our expenses considerably at a moment when the expensive housing market and elevated interest rates are already squeezing our profit margins.”
Payne from Denver Concrete Vibrator further emphasized that the tariffs will likely create a ripple effect throughout the supply chain.
“I sell to other businesses rather than to direct consumers,” she noted. “Therefore, any impact on my costs will reverberate throughout the entire supply chain, affecting everyone involved.”
