The American dream of entrepreneurship faces an unexpected obstacle for many veteran business owners: international trade policy. For Jason Steinmann, a former Army sergeant who served three combat tours in Iraq and Afghanistan, building his cleaning equipment business became a battle against rising costs driven by tariffs implemented during the Trump administration and maintained by President Biden.
Steinmann’s journey reveals the often-overlooked collateral damage of trade policies on small businesses, particularly those owned by veterans transitioning to civilian life. His company, ChronoClean, which sells commercial pressure washers, faces profit margins squeezed to near-zero as tariffs on Chinese imports have dramatically increased his costs.
“I’m getting buried,” Steinmann told NBC News. “I can’t raise my prices anymore. My customers are going to walk.” His plight represents thousands of small business owners caught in the crossfire of trade policies originally designed to protect American manufacturing but now threatening their survival.
The tariffs, initially imposed by the Trump administration in 2018 at rates between 7.5% and 25% on various Chinese goods, have remained largely intact under Biden. Far from being abstract policy decisions, these tariffs translate directly to higher costs for business owners like Steinmann, who must either absorb the additional expenses or pass them to customers.
The situation has worsened recently as the Biden administration announced plans to quadruple tariffs on certain Chinese goods, including electric vehicles, semiconductors, and medical products. While aimed at protecting strategic industries, these decisions create ripple effects throughout the economy that disproportionately impact small businesses with limited financial reserves.
For veteran entrepreneurs, the challenge is particularly bitter. According to the Small Business Administration, veterans are 45% more likely to be self-employed than non-veterans. Many, like Steinmann, leverage skills acquired during military service to build businesses that provide economic security and purpose in civilian life.
ChronoClean’s story began with promise. Steinmann identified a market opportunity for commercial pressure washers and built a business that allowed him to support his family while serving other small businesses. The company grew steadily until tariff increases forced painful decisions.
“I’ve had to let people go,” Steinmann explained. “These were good jobs that disappeared not because of market conditions but because of policy decisions made in Washington.” The economic impact extends beyond his own family to employees who depended on these positions.
Financial data from the U.S. Chamber of Commerce indicates that tariffs have cost American businesses and consumers over $80 billion annually. While large corporations can often absorb these costs or negotiate special exemptions, small businesses lack such flexibility.
“The tariffs were supposed to help American manufacturing, but the reality is more complicated,” explains Mark Zandi, chief economist at Moody’s Analytics. “For many small businesses that rely on imported components or products, they’ve become an existential threat.”
Veterans who start businesses often face additional challenges. According to research from Syracuse University’s Institute for Veterans and Military Families, access to capital remains a significant hurdle, with many veteran entrepreneurs reporting difficulty securing loans compared to their civilian counterparts. When tariffs increase costs, these businesses have fewer financial resources to weather the storm.
The Federal Reserve Bank of Atlanta has noted that small businesses typically operate with thinner profit margins, usually between 7-10%, compared to larger corporations that average 15-20%. Tariff increases of 25% on key imports can completely erase profits for businesses like ChronoClean.
Steinmann’s dilemma illustrates a broader economic pattern. When faced with tariffs, business owners have limited options: absorb the costs and reduce profits, pass them to consumers and risk losing business, or find alternative suppliers, which often proves impossible in specialized industries.
“People think you can just find American-made alternatives, but in many cases, they simply don’t exist or cost three times as much,” Steinmann said. His search for domestic suppliers for the components he needs has repeatedly come up empty.
The Biden administration has defended the continuation of these tariffs as necessary to counter Chinese trade practices, but economists remain divided on their effectiveness. A recent Peterson Institute for International Economics study found that rather than bringing manufacturing back to the United States, many companies simply shifted production to other countries like Vietnam or Mexico.
For Steinmann, policy debates offer little comfort as he faces immediate business challenges. “I served my country, came home, and built something from nothing. Now I’m watching it slip away because of decisions made by people who don’t understand what it’s like to run a small business.”
Advocacy groups representing veteran business owners have called for targeted relief, including tariff exemptions for small businesses with revenues below certain thresholds. The American Legion and other veteran service organizations have joined this push, highlighting the unique challenges faced by veteran entrepreneurs.
As the presidential election approaches, trade policy will likely remain contentious, with both major parties claiming to support American businesses. For Steinmann and thousands of veteran entrepreneurs like him, the hope is that policymakers will recognize the unintended consequences of broad tariff policies on those who have already sacrificed for their country.
“All I’m asking for is a chance to compete on a level playing field,” Steinmann said. “I’ve overcome a lot of obstacles in my life, but these tariffs might be the one that finally puts me out of business.”
