The growing tension around Trump’s proposed tariffs has small business owners across America increasingly worried about their future. On ABC’s “This Week,” a small business owner delivered a stark warning that these tariffs could potentially force their operation to close completely. This troubling prediction highlights the real-world consequences that could affect thousands of similar businesses nationwide if sweeping tariff policies are implemented.
“These tariffs would pretty much put us out of business,” the owner explained during the interview, revealing the fragile position many small enterprises find themselves in. The owner’s manufacturing business relies heavily on imported materials that would face significant price increases under the proposed tariff structure. This isn’t just about minor profit adjustments—it’s about survival for many American small businesses.
Economic analysts have consistently pointed out that tariffs function essentially as taxes paid by domestic businesses and consumers—not foreign countries. According to data from the Tax Foundation, the previous round of tariffs during Trump’s first administration cost American households an average of $1,277 annually. Small business owners now fear this burden could increase substantially under new proposals that include tariffs of up to 60% on Chinese goods and at least 10% on all other imports.
The ripple effects extend beyond just the businesses directly importing goods. Supply chains across virtually every industry sector would face disruption as costs increase throughout the production process. The Peterson Institute for International Economics estimates that a 10% universal tariff could reduce U.S. GDP by approximately 1.6% while eliminating nearly 2 million jobs across various sectors.
For small retailers and manufacturers with thin profit margins, even moderate cost increases can prove devastating. “We’re already dealing with post-pandemic challenges and inflation pressures. Adding tariff costs would make our pricing completely uncompetitive,” the business owner added during the ABC interview. This sentiment echoes concerns from the National Federation of Independent Business, which recently surveyed members and found that 67% believe significant tariffs would negatively impact their operations.
The debate around tariffs often centers on protecting American industries, but many small business advocates argue the approach may do more harm than good. The U.S. Chamber of Commerce has repeatedly warned that tariffs could backfire by raising costs for American manufacturers who depend on global supply chains to remain competitive. Their analysis suggests that for every job potentially “protected” by tariffs, many more could be lost due to higher production costs and retaliatory measures from trading partners.
Some economists point to previous tariff implementations as cautionary tales. Mark Zandi, chief economist at Moody’s Analytics, recently noted that “the evidence is clear from the previous trade war that American businesses and consumers bear the cost of tariffs, not foreign exporters.” His research indicates that the manufacturing sector—often cited as the potential beneficiary of protective tariffs—actually lost jobs during the previous round of tariff increases.
The business owner interviewed by ABC represents countless others facing similar challenges. With approximately 33.2 million small businesses in America employing nearly half the private workforce, the potential economic impact extends far beyond individual companies. These businesses form the backbone of local economies nationwide, particularly in small towns and rural areas where alternative employment options may be limited.
Industries particularly vulnerable to tariff impacts include consumer electronics, furniture manufacturing, automotive parts, and specialized manufacturing—sectors dominated by small and medium-sized businesses. Many of these companies operate with just enough margin to remain viable in competitive markets. Even modest cost increases could force difficult decisions about staffing, expansion plans, or continued operation.
The Biden administration has maintained some of the tariffs implemented during the previous administration while pursuing a more targeted approach. However, campaign promises regarding potential new tariff policies have created uncertainty across the business landscape as owners attempt to plan for different scenarios.
For consumers, the consequences would likely appear in the form of higher prices across numerous product categories. The National Retail Federation estimates that expande
