{"id":15712,"date":"2025-05-25T19:40:18","date_gmt":"2025-05-25T19:40:18","guid":{"rendered":"https:\/\/finderica.com\/?p=15712"},"modified":"2025-05-25T19:40:18","modified_gmt":"2025-05-25T19:40:18","slug":"small-businesses-in-limbo-amid-trumps-tumultuous-trade-war","status":"publish","type":"post","link":"https:\/\/finderica.com\/?p=15712","title":{"rendered":"Small Businesses in Limbo Amid Trump\u2019s Tumultuous Trade War"},"content":{"rendered":"
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Many small-business owners may be feeling whiplash after the Trump Administration has spent the past several weeks announcing, pausing and adjusting hefty tariffs on imported goods and parts that business owners rely on.<\/span><\/p>\n<\/div>\n

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Ninety percent of U.S. firms that import from China are small businesses with fewer than 100 employees, according to U.S. Census Bureau data. And businesses of this size are typically not well-positioned to withstand supply chain disruptions or price increases.<\/span><\/p>\n<\/div>\n

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\u201cThe unpredictability makes long-term financial planning nearly impossible,\u201d Hugo Ramirez, owner of Frio Mexican Treats, an ice cream shop in Appleton, Wisconsin, told SS via email. \u201cInstead of investing in growth opportunities, we\u2019re focused on building cash reserves and extremely cautious with spending. When you don\u2019t know what policy changes might come tomorrow, you\u2019re forced to operate in survival mode rather than growth mode.\u201d<\/span><\/p>\n<\/div>\n

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Several of the small-business owners we spoke with echoed this sentiment, and shared how they\u2019re navigating shifting tariff policies and planning for uncertain futures.<\/span><\/p>\n<\/div>\n

Pursuing new revenue streams<\/span><\/h2>\n
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As a result of tariffs and higher prices, business owners are thinking outside the box \u2014 testing out new revenue streams and pivoting their existing business models where possible.<\/span><\/p>\n<\/div>\n

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Denise A. Grant runs Hactac Events, a wedding and event design company based in Paramus, New Jersey. To create her custom floral arrangements, Grant usually uses a combination of fresh and artificial flowers.<\/span><\/p>\n<\/div>\n

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Lately, that balance has become harder to maintain. Artificial flowers, especially those imported from China, have become significantly more expensive due to tariffs. What was once a cost-saving option, is now often more expensive than fresh flowers, she told SS.<\/span><\/p>\n<\/div>\n

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To offset rising costs, Grant got creative \u2014 she opened a \u201cnew arm of revenue\u201d by renting out her artificial flower inventory to other local event professionals. <\/span><\/p>\n<\/div>\n

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In a different industry, but facing similar challenges, Connor Alexander is also readjusting his current business model. Alexander owns Coyote and Crow Games, a specialized board and card game publishing company based in Seattle that uses Chinese manufacturing.<\/span><\/p>\n<\/div>\n

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As tariffs have increased costs and made his pricing strategy difficult, Alexander is exploring ways to incorporate more digital elements into his business \u2014 like releasing a PDF version of his games before a physical one is available. <\/span><\/p>\n<\/div>\n

Searching for new suppliers<\/span><\/h2>\n
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To avoid the rising costs of overseas imports, some business owners are turning to local or alternative suppliers.<\/span><\/p>\n<\/div>\n

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Grant, for example, has shifted to sourcing her fresh flowers locally, rather than importing them from South America, which she says has worked well for her. But not all business owners have found the same success.<\/span><\/p>\n<\/div>\n

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Rob Kurnik, owner of Superior Coffee Roasting in Sault Sainte Marie, Michigan, uses coffee beans from multiple countries to create some of his best-selling blends. He has had difficulty identifying coffee-producing countries that aren\u2019t subject to tariffs. <\/span><\/p>\n<\/div>\n

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\u201cThis strategy offers limited security as tariff policies have been changing without warning,\u201d he told SS via email.<\/span><\/p>\n<\/div>\n

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Similarly, Alexander has been looking at pivoting away from Chinese manufacturing for his games. But given the country\u2019s infrastructure, technology and skilled workforce, he says moving production out of China will be a major challenge.<\/span><\/p>\n<\/div>\n

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And even with the current 90-day pause on higher Chinese tariffs, Alexander isn\u2019t optimistic. \u201cThese pauses are meaningless unless someone already has inventory on the water and is arriving in port.\u201d Otherwise, he said, he has to have his product produced and ready to ship within the 90 days.<\/span><\/p>\n<\/div>\n

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\u201cThe pause announcement doesn\u2019t change anything. It reinforces the core problem,\u201d he said. \u201cI think it underlines the fact that as soon as I can, I have to pivot away from working with China, or likely any manufacturing partners in other countries.\u201d<\/span><\/p>\n<\/div>\n

Downsizing staff<\/span><\/h2>\n
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For three consecutive months this spring, small-business owners reported finding qualified workers as their top challenge, according to the NFIB Small Business Optimism Index<\/span>