Small businesses take it on chin in Trump’s tariff war — here’s how they’re trying to weather storm

Impact of Tariffs on Small Businesses

President Trump’s tariffs are significantly affecting businesses in the US, especially smaller companies.

Small and midsize firms, which make up about a third of yearly US imports, are facing challenges due to their reliance on Chinese manufacturing.

A new report from PYMNTS Intelligence shows that nearly one in five small-to-midsize firms are pessimistic about their survival in the next five years.

Some small business owners shared their concerns:

Isaac Larian – MGA Entertainment

Isaac Larian, CEO of MGA Entertainment, expressed frustration over the tariffs impacting his toy company. The company has paid nearly $10 million in tariffs in a span of two weeks, affecting their plans to expand their factory in Ohio.

TJ Semanchin – Wonderstate Coffee

Wonderstate Coffee, a java distributor, is facing financial challenges due to the tariffs. The company is considering borrowing money to cover the extra $20,000 in tariffs on coffee beans imported from Ethiopia.

Harry Shires – Tarptent Inc.

Tarptent Inc., a company that makes outdoor gear, had to suspend operations at its Hong Kong factory due to increased tariff rates. The company is now paying significantly more in levies, impacting their annual revenue.

Emily Vikre – Vikre Distilling

Vikre Distilling, a distillery in Minnesota, is facing a drop in sales as a result of the tariffs. The company is concerned about potential price hikes from vendors, which may lead to difficult decisions regarding warehouse and retail space.

Sarah McDonald – Out There Outfitters

Out There Outfitters, an apparel store in Pennsylvania, is worried about potential layoffs due to the impact of tariffs. The uncertainty surrounding the implementation and rates of tariffs is causing concern for the business.

Jay Kamhi – Kamhi World

Kamhi World, a toy seller, is exploring options to mitigate the impact of tariffs on their products. The company is considering shifting production to other countries but is facing challenges due to limited capacity and higher costs.