Tariffs Devastating Impact on Small Businesses: A Holiday Season CrisisTariffs imposed by the previous administration have led to a surge in prices for popular holiday goods, causing a significant number of small businesses to close. Industry leaders warn that this trend is disproportionately affecting small firms, which often operate on tighter margins and have less ability to absorb rising costs compared to larger companies.Small business owners like Joann Cartiglia, who owns Queens Treasures, a toy company in New York, are struggling to keep their businesses afloat. Despite lawsuits and opposition from both small and large businesses, the administration at the time maintained its aggressive trade strategy, claiming it would generate trillions of dollars for the federal government.Jared Hendricks, who runs Village Lighting Company in Utah, estimates his tariff costs are approaching one million dollars this year alone. He says his company has transitioned from working for profits to simply working to pay off tariff debt. He also anticipates that the problem will worsen, suggesting that any price increases seen this year will be small compared to next year if tariff relief isnt provided for the twenty twenty-six season.The complex supply chain for holiday goods, which has never been produced in America, makes it difficult to build the necessary infrastructure. Boyd Stephenson, owner of Game Kastle College Park in Maryland, noted that many toy and game studios he works with have gone out of business this year due to soaring costs.A survey of over one thousand small businesses found that seventy-one percent of owners expect tariffs to negatively impact consumer spending this holiday season, with forty-four percent anticipating a very negative impact. The administration at the time argued that foreign exporters would ultimately bear the cost of tariffs, and that these measures, combined with tax cuts and deregulation, would help businesses thrive.
DNN | The Daily News Now!
The world’s first global local news network.
Every city. Every story. AI powered.
Hosted on Acast. See acast.com/privacy for more information.
