Just last week, a U.S. court ruled that Trump had overstepped his authority with many of the import tariffs, only for an appeals court to quickly pause that decision the very next day. This back-and-forth has left small business owners in a tough spot — unsure when or if tariffs will stick, and forced to rethink everything from product lines to staffing.

“My fear is if this continues, there’s going to be a mass extinction of small businesses,” said Julie Robbins, CEO of Ohio-based guitar pedal maker EarthQuaker Devices. Her words capture the frustration felt by many entrepreneurs trying to navigate this unpredictable landscape.

A Constantly Changing Tariff Game

Trump’s tariff saga kicked off on April 2 with sweeping import levies slapped on countries worldwide. Since then, the situation has been anything but steady:

• Early April: A 90-day pause on reciprocal tariffs was announced — except for China.
• Later, tariffs on Chinese imports spiked to a staggering 145%.
• Some products like smartphones were then exempted from certain tariffs.
• The U.S. and China agreed to roll back reciprocal tariffs for 90 days in May.
• Late May brought threats of 25% tariffs on companies like Apple if they don’t manufacture phones in the U.S.
• Levies on European Union imports were pushed back until July 9.

These changes come through official announcements, social media, and sometimes just word of mouth — making it nearly impossible for businesses to keep track.

Small Businesses Feeling the Heat

Big companies like Gap are feeling the pinch, but it’s the small and niche brands that are bearing the brunt. According to the National Federation of Independent Business, the Small Business Optimism Index dropped for the second month in a row, largely because of the uncertainty.

Jack Leathem, an analyst at Canalys, explained, “It’s the smaller, niche brands that are really going to get hit hard.”

Take EveAnna Manley, CEO of Manley Labs, which makes high-end studio electronics. She’s had to cut employee hours by 25% due to tariffs. China, a key market for her business, has hit back with its own tariffs, complicating things even more. Manley’s sales have dropped nearly 20%, and her company has frozen product development.

“It’s just a freaking mess right now,” Manley said in late May, adding, “I’m so angry that my own government has done this to me.”

Finding Flexibility Amid Chaos

Experts say the best way for small businesses to survive is by staying flexible — diversifying supply chains and not putting all their eggs in one basket.

Assaf Gad, chief strategy officer at Intuition Robotics, shared how his company, which makes home robots for older adults, is planning ahead. They’re exploring alternatives to manufacturing in China and even eyeing international markets to reduce risks.

“This might be a good time to say, ‘Let’s not put all the eggs in one basket,’” Gad said. His company’s digital subscription model also helps cushion the blow from sudden tariff changes.

But Not Everyone Can Pivot Easily

Some businesses don’t have the luxury to shift quickly. Sarah O’Leary, CEO of Willow — a company making wearable breast pumps — says tariffs have forced them to pause exporting certain products made in China because the costs got too high.

When the recent court ruling sought to block many tariffs, O’Leary felt some relief but also warned that “there’s still so much uncertainty” and “the chaos will persist.”

Small businesses often operate on thin margins, she explained. Even small tariffs can be devastating.

“We don’t build our products with that much margin,” she said. “So we have to constantly evaluate what we can do to survive.”

The Bottom Line

For small businesses, Trump’s tariff policies have created a storm of unpredictability — leaving many anxious, angry, and scrambling to adapt. While some are pivoting and exploring new markets, others fear the long-term damage could be catastrophic.

In this high-stakes game of tariff whiplash, the hope for many is simple: some stability and the chance to get back to focusing on what they do best — building their businesses.

Source: CNN – Small businesses struggle under Trump’s tariff whiplash: ‘I’m so angry that my own government has done this to me’

The post Tariff Chaos Hits Small Businesses Hard: “I’m So Angry at My Own Government” appeared first on Journos News - Breaking News, World News, Top Stories, Todays Headlines and Flash Reports.

NEW YORK — For many American small business owners, the latest round of tariffs on Chinese imports has pushed them to the brink. With tariffs now as high as 145%, major product shipments are stranded overseas, invoices are piling up, and future operations are uncertain.

While President Donald Trump recently hinted that the tariffs could “come down substantially,” the damage is already being felt. For small businesses operating on tight margins, the financial strain and policy unpredictability have created a crisis with no clear end in sight.

In Manchester-by-the-Sea, Massachusetts, WS Game Company—a family-run business that creates deluxe editions of Hasbro classics like Monopoly and Scrabble—has seen its 25 years of growth abruptly stall.

The company’s games, which retail for $40 and were featured on Oprah’s Favorite Things list in 2024, are manufactured entirely in China. Now, three of its shipping containers—carrying $500,000 worth of finished games—are stuck overseas. More critically, the company lost $16 million in orders from three major U.S. retailers.

“We can’t just switch manufacturers overnight,” said owner Jonathan Silva. With only about four months of financial runway left, Silva warns, “These tariffs have disrupted our business and put us on the verge of insolvency.”

In Lexington, Kentucky, Jeremy Rice co-owns House, a home décor store that relies heavily on silk flowers from China—about 90% of their inventory.

Vendors are already hiking prices by 20% to 25%, and smaller suppliers are expected to raise them even higher. Despite ordering holiday stock early, Rice only has enough everyday inventory to last a few months.

“After that, I don’t know what we’re going to do,” he said, fearing a wave of small store closures similar to what happened during the Great Recession and the pandemic.

In Ann Arbor, Michigan, Lisa McDonald, owner of TeaHaus, says the tariffs have left her with a sinking feeling. Her shop, located near the University of Michigan, has served premium teas for nearly 18 years.

With the U.S. importing almost all of its tea due to climate and cost, McDonald can’t simply shift suppliers. Her premium blends—some priced up to $33 for a 50g bag—could become unaffordable if tariffs stay in place.

“We can’t just flip a switch and grow tea in America,” she said. “It’s not realistic.”

Jim Umlauf, owner of 4Knines in Oklahoma City, makes pet-friendly seat covers and cargo liners for vehicles—products that require specialized materials from China.

Umlauf tried moving production elsewhere after the 2018 tariffs but hit roadblocks. Now, with the newest tariffs in place, he says they’re barely surviving. “We have a limited amount of inventory left, and without some relief, we’ll run out soon.”

Frustrated by the lack of response from government officials, Umlauf added: “It’s time for policymakers to understand that trade policy affects real people, not just stock prices.”

For small businesses across America—from tea sellers to board game makers—the tariff war with China is doing more than reshaping trade policy. It’s threatening their very survival. Without swift relief or support, many could soon shut their doors for good.

Source: AP News – ‘Nowhere to turn’: Small businesses dependent on imports from China are feeling more desperate

The post Small U.S. Businesses Struggle as China Tariffs Hit Hard appeared first on Journos News - Breaking News, World News, Top Stories, Todays Headlines and Flash Reports.