Chicago’s Black entrepreneurs are facing mounting challenges as tariff policies from the previous administration continue to ripple through small business operations. Many owners have been forced to make difficult decisions about pricing, staffing, and expansion plans. The strain is particularly evident in neighborhoods like Bronzeville and South Shore, where Black-owned businesses form the backbone of local economic activity.
Marcus Johnson, who owns a specialty electronics store in Chatham, has seen his import costs rise by nearly 22% since 2018. “We’re caught in the middle,” Johnson explains. “Our suppliers raise prices because of tariffs, but customers can only stretch their dollars so far.” Johnson has absorbed some costs to remain competitive, but his profit margins have shrunk dramatically.
The tariffs, initially positioned as leverage against China and other trade partners, have created a complicated economic landscape for small business owners. While designed to protect American manufacturing, they’ve had unintended consequences for retailers and service businesses that rely on imported components or finished goods. For Black entrepreneurs who already face systemic funding challenges, these additional costs have proven especially burdensome.
Data from the Chicago Urban League shows that Black-owned businesses in the city are 43% more likely to cite supply chain costs as their primary concern compared to the broader business community. This disparity highlights how economic policies can disproportionately affect communities with fewer financial buffers and limited access to capital.
“We’re seeing a troubling pattern,” notes Dr. Evelyn Carter, an economist at the University of Chicago. “Black entrepreneurs often start with less capital and face higher loan rejection rates. When external shocks like tariff increases hit, they have fewer options to weather the storm.” Carter’s research indicates that profit margins for Black-owned retail businesses in Chicago have declined by an average of 18% since the tariff policies began.
The Federal Reserve Bank of Chicago recently published findings showing that businesses in predominantly Black neighborhoods received 41% less in emergency loans during economic downturns, further complicating their ability to adapt to changing cost structures. This financing gap creates a compounding effect when paired with policy-driven cost increases.
Tariffs ranging from 7.5% to 25% on Chinese goods have affected everything from textile imports to electronic components. For Tasha Williams, who owns a custom clothing boutique in South Shore, the impact has been direct. “The fabrics I source now cost almost a third more,” Williams says. “I’ve had to raise my prices slightly, but I worry about losing customers who are also feeling squeezed financially.”
The Chicago Black Chamber of Commerce has documented over 120 member businesses reporting significant hardship due to increased import costs. Nearly 40% have reduced staff hours, while 28% have delayed planned expansions. These statistics represent more than business challenges—they reflect diminished economic opportunity in communities already facing structural disadvantages.
Some business owners have gotten creative. Devon Harris, who runs a home goods store in Woodlawn, has shifted to sourcing more products domestically. “It’s been a tough adjustment,” Harris admits. “American-made products often cost more initially, but I’m building relationships with suppliers who understand my situation. The tariffs forced this change, but I’m trying to make it work.”
City officials have recognized the problem. The Chicago Department of Business Affairs and Consumer Protection launched a targeted assistance program providing consultation services specifically for businesses affected by trade policies. However, many entrepreneurs describe the help as a band-aid on a larger wound.
Financial experts suggest the real challenge lies in the unpredictability of trade policy. “Business owners need stability to plan effectively,” explains Michael Reynolds, a financial advisor who works with small businesses on
