Tariffs on Canada and Mexico will have a real, devastating impact on thousands of small businesses across the nation, and discussion of further tariffs on other countries is creating uncertainty.
Even those that can pass the cost of tariffs on to customers immediately say they are worried the added costs will impact their ability to remain competitive and profitable — or to grow.
Many small businesses are beginning to speak out about what tariffs mean to their businesses.
Here’s what they’re saying.
Impact to Business Growth
“Our company, Bonsai Design, is an industry leader in the design and installation of world-class aerial adventure ranging from zip lines and drop towers to adventure parks. We rely heavily on steel as well as industry-specific materials in the global marketplace. Many of our materials are imported. These newly initiated tariffs could result in rising costs, which would cause us to lose our clients. We are concerned that the price increase of our raw materials and goods will be prohibitive for us to sell our products in the U.S. market.”
— Sarah Shrader, owner and co-founder, Bonsai Design, Grand Junction, Colorado
“My company will feel an immediate, detrimental impact as a result of these tariffs. The threats and uncertainty have made it hard to make business decisions, and these kinds of tariffs will make it extremely difficult for small businesses like mine to grow.”
— Traci Tapani, co-president of Wyoming Machine, a sheet metal fabricator in Minnesota that purchases aluminum from Canada. Tapani serves as Vice-Chair of the U.S. Chamber’s Small Business Council.
“Ever since the announcement there was going to be tariffs on Mexico and Canada, we saw prices on all materials, including domestic materials, start to increase … we’re talking 75 cents or so on a case of any of our beverages being produced”
— Bill Baburek, owner, Crescent Moon, Omaha, to Omaha WOWT
“[Lumber] has already been getting more expensive over the past few years due to supply chain shocks and wildfires, and a huge proportion of our lumber comes from Canada. These tariffs are going to make everything we do considerably more expensive, at a time when the high-priced housing market and high interest rates are already cutting into our bottom line.”
— Bar Zakheim, owner, Better Place Design & Build, San Diego, to The Baltimore Sun
“Small businesses run on very small margins. And so a 25% increase in any product is going to hurt. And we can’t just raise our prices every time the cost goes up to us. So we are losing a lot of money.”
— Sarah Payne, owner, Denver Concrete Vibrator, Denver, to the Associated Press
Scrambling to Adapt
Small business owners say tariffs will impact their ability to grow and hire and are already making them less profitable.
Anxious Business Owners
“Our company, DensityUSA, a security fog business located in St. Louis, Missouri, is concerned about experiencing significant challenges due to the looming threat of new tariffs, and the uncertainty surrounding potential retaliatory measures. As a growing small company, these tariffs and tariff threats could not only hinder our capacity to expand and create jobs but also serve as a substantial obstacle for many similarly situated small companies. While the negative impact of tariffs on consumers is well-known, it is crucial to recognize that they also pose serious barriers to growth for businesses like ours.”
— Mike Egel, president, DensityUSA, St. Louis, Missouri
“We pursued our dreams 25 years ago and opened a manufacturing company for mountain bike components in Grand Junction, Colorado.
While we manufacture many of our products in the United States, we still import some key components and raw materials to support our production. And more importantly, we also export to Europe and Asia resulting in almost 50% of our annual revenue. Additional tariffs on the components and raw materials we are importing will increase our costs and increase the likelihood of retaliatory tariffs on our exported products adding additional headwinds against our small business.
I want to be optimistic that the new tariffs will be lifted soon and allow our company, and our dream, to continue to flourish. But being realistic, I am very concerned about the negative impacts of a trade war and our ability to continue to support our employees and our community.”
— Tim Frey, president & CEO, MRP Bike, Grand Junction, Colorado
Weighing Cost of Staying Open
"I'm afraid we'll have to close our doors because people won't have the money to come and shop for things like piñatas and all the traditional Mexican candy that people love.”
— Yesi Noyola, owner, Kandy Queen Dulceria, North Richland Hills, Texas, to CBS Texas
“People can’t pay more for stuff, and won’t pay more for items. ... Your items shrink to the point where you’re really going to evaluate if you’ll keep certain shops open.”
— Sarah Pitkin, owner of four hardware stores in Virginia, to the New York Times
Cost to Consumers
“Is this going to affect our business? You bet it is. I don’t like what’s going on. And I think people are going to be truly shocked at the pricing they’re going to see on the cars, on the lumber, on the clothes, on the food. This is going to be a mess.”
— Linda Schlesinger-Wagner, owner, skinnytees, Birmingham, Michigan, to the Associated Press
“The recent increase in tariffs on imported goods will have a significant negative impact on my business. Many of the products I sell are imported, higher tariffs will directly raise my costs.
These increased costs will force me to either raise prices, which may drive away customers, or absorb the costs, which will threaten the sustainability of my business. Many of my customers are from immigrant communities who rely on these products as part of their cultural and dietary traditions, and price increases may make essential goods unaffordable for them.
I urge policymakers to consider the real-world consequences of these tariffs on small businesses like mine and the diverse communities that depend on them.”
— Bridget Ofor, owner, Nana African Market, Aurora, Colorado
See the State-by-State Impact
Impact on Americans
While the U.S. Chamber shares concerns about border security and the scourge of fentanyl, unfair trading practices, tariffs on Canada and Mexico won't solve those problems and instead would lead to higher prices for Americans.
"The bottom line is this: tariffs are a tax paid by Americans, and their broad and indiscriminate use would stifle growth at the worst possible time," Chamber President and CEO Suzanne P. Clark said in her annual State of American Business address. She stressed that to boost economic growth, America must participate in the global economy. That includes seizing opportunities to increase trade.
In 2024, the Chamber unveiled the Growth and Opportunity Imperative for America, an initiative to urge policymakers to focus on a goal of 3% annual real economic growth, which will raise wages for workers and create new opportunities for Americans to reach their dreams.
