Article – Chicago’s Milwaukee Avenue business district is facing what some owners describe as an “existential threat” as new tariffs begin to affect inventory costs and consumer spending. During National Small Business Week, the contrast between celebration and concern couldn’t be starker for many local entrepreneurs.
Maria Ramirez, who has owned Adelita’s Gifts for nearly two decades along the Milwaukee Avenue corridor, points to a shipment of imported ceramics that arrived last week. “My costs jumped almost 30% from last year,” she explains while arranging colorful Mexican pottery on her store shelves. “I can’t pass all that to my customers – they’re already watching every dollar.”
Across Chicago’s small business landscape, similar concerns are emerging as the impact of increased tariffs on imported goods begins to materialize. The Milwaukee Avenue corridor, home to over 200 small businesses representing diverse cultural backgrounds, has become something of a bellwether for the city’s entrepreneurial health.
The Federal Reserve Bank of Chicago recently released data suggesting that small businesses with significant import dependencies could see profit margins shrink by 15-22% in coming months. For businesses operating on typical margins of 8-10%, this represents a potentially devastating blow.
“We’re caught in a vice,” says James Wilson, who runs a family-owned hardware store that has operated since 1977. “Steel products, tools, even simple things like nails – everything’s getting more expensive to stock. But our customers can’t afford higher prices either.” Wilson has already reduced his staff from five to three employees.
Senator Dick Durbin visited the corridor last Wednesday, meeting with business owners to discuss these challenges. “What I’m hearing from small business owners in Chicago is deeply concerning,” Durbin told reporters. “These are family operations that survived COVID-19 through sheer determination, and now they’re facing another serious threat.”
Economic analysts point to a troubling ripple effect. When small businesses struggle, the impact extends beyond individual owners to employees, suppliers, and neighborhood vitality. Chicago’s Department of Business Affairs and Consumer Protection estimates that the Milwaukee Avenue corridor alone represents approximately 1,800 jobs.
Local banks report increasing inquiries about emergency business loans. “We’ve seen a 40% jump in small business loan applications compared to this time last year,” notes Patricia Hernandez, Vice President of Community Lending at First Chicago Community Bank. “Many owners are trying to secure capital to weather what they hope will be a temporary storm.”
The U.S. Chamber of Commerce has identified Chicago as one of fifteen major metropolitan areas where small businesses face elevated risk due to international trade tensions. Small businesses typically lack the purchasing power and financial reserves of larger corporations, making them particularly vulnerable to sudden economic shifts.
For consumers, the impacts will likely become more visible by summer. “We’re still selling through inventory purchased before prices increased,” explains Tony Chang, whose family-owned electronics shop sells imported components and finished products. “But by June or July, everything on these shelves will reflect the new reality.”
Some business owners are getting creative. Ramirez has started featuring more locally-made items alongside her imported inventory. Wilson’s hardware store now offers repair services to help customers extend the life of existing tools rather than replacing them.
Community organizations are stepping in as well. The Milwaukee Avenue Chamber of Commerce has organized bulk-buying cooperatives to increase purchasing power, while local aldermen have proposed temporary tax relief measures for affected businesses.
“What’s at stake here is more than just individual businesses,” says Professor Elena Rodriguez, who studies urban economics at DePaul University. “These commercial corridors are essential to Chicago’s identity and community cohesion. When they decline, neighborhoods often follow.”
For now, business owners like Ramirez continue to adapt while hoping for economic policy adjustments. “This store put my kids through college,” she says
