This is an article from the June 2025 Civitas Examiner (Volume 2, No. 3) and was written by one of our students, Charles G. The opinions expressed herein do not reflect those of Civitas other than respect for the value of open dialogue. To read more Civitas Examiner stories or to submit your own, click here.
Across the United States, small businesses are facing a growing crisis. Once praised on the campaign trail as the backbone of the American economy, many of these businesses now say they are being left behind. The reason, they say, is tariffs.
During his campaign in early public appearances, President Donald Trump often stressed the importance of small businesses, pledging to protect them and create a climate where they can grow. However, policy shifts after Trump‘s return to office led to a different story.
Beginning in early 2025, the Trump administration enacted a series of new tariffs targeting imports from China, Mexico, and Canada. The move was meant to pressure foreign governments into more favorable trade agreements. However, the consequences for small business owners in the United States have been steep.
According to data from the US Chamber of Commerce and Bank of America, small businesses are now absorbing an estimated $3.4 billion in extra (monthly) costs due to Trump‘s tariffs. Affected businesses report an average increase of $9,000 per quarter in expenses, often tied to imported materials in inventory.
In southern Missouri, one brewer owner is already seeing these effects. This individual runs a small craft brewery outside of Rolla, Missouri. The rising cost of aluminum, heavily impacted by tariffs, has forced this business to rethink how to package and distribute its beverage. When tariffs kicked in, the price per can went up almost 30%.
Trump‘s tariffs have also disrupted supply chains and halted expansion plans. Learning Resources, a major educational toy manufacturer, canceled the construction of a new 6,000-square-foot factory after tariffs related to cost forced a shift in production strategy. In an interview with the Wall Street Journal, the CEO of Learning Resources states, “ We have had to freeze hiring, cut back on production development, and file legal action against the federal government. It’s like being in a fight you didn’t start and cannot escape.”
Other businesses have also followed suit. VOS Selections, a wine importer, reported a 60% revenue drop after Trump‘s tariffs raised the cost of European wines. The company is now part of a broader lawsuit challenging the legality of the tariffs.
The fear goes beyond the current cost. A survey from Aligande found that 53% of small business owners believed that Trump’s tariffs would continue to hold their business. In comparison 77% believe the broader US economy could suffer.
The damage is industry-specific. According to the Washington Post, the toy sector‘s prices rose 2.2% in just one month, with some items jumping up as much as 36% due to tariffs hiking as high as 145%. Real estate, construction firms, and food production have reported similar spikes in input prices.
While larger corporations may be able to spread out or absorb the impact, small businesses often lack a cushion. Nearly 97% of US porters are classified as small businesses, making them more vulnerable to sudden shifts in trade policy.
Despite the challenges, many business owners are not opposed to the fair trade policies they seek, which they say predictably support the government when they are told it would champion them. Many are watching Trump‘s next move from Washington, hoping relief will come before the damage becomes irreversible.
