Tariffs Impact Small Businesses Amidst Rising Costs
New York (AP) - President Donald Trump's implementation of tariffs on steel, aluminum, and Chinese goods is causing concern among small business owners who are already struggling with thin profit margins.
Impact on Businesses
Sandra Payne, owner of Denver Concrete Vibrator, faces increased costs due to the tariffs on steel imports. Her business relies on raw materials from China, Canada, and Mexico, making the 25% tariff on steel a significant challenge.
Across the border, Julie Bednarski-Malik, founder of Healthy Crunch, is considering raising prices in anticipation of tariffs on goods sold in the United States. However, she remains uncertain about the specific timing and impact of the tariffs.
Bar Zakheim, owner of Better Place Design & Build in San Diego, expresses concern about the potential impact on lumber costs. A substantial portion of lumber used in his business comes from Canada, and the prospect of tariffs adds further strain to a market already experiencing supply chain disruptions and wildfires.
Ripple Effects
Payne highlights the potential domino effect of tariffs: "Everything that happens to me is going to happen all the way down the line." Businesses that purchase goods from other businesses will ultimately pass on the increased costs to consumers.
Mitigation Strategies
Small business owners are considering strategies to mitigate the impact of tariffs. Payne believes raising prices might be necessary, while Bednarski-Malik adopts a wait-and-see approach pending more clarity on the details of the tariffs.