Small Businesses Face Steep Challenges Amid Rising Tariffs

Katrina Golden, owner of Lil Mama’s Sweets & Treats, received a notice this spring from her Chinese supplier about impending tariffs on branded paper coffee cups. The company offered a chance to secure the current price of $225 per case by placing a bulk order immediately.

However, Ms. Golden, whose café operates inside a hospital in downtown Augusta, Georgia, explained she lacked the financial flexibility to take advantage of this offer. "My bottom line simply couldn’t support it," she said.

Across the United States, businesses, employees, and families are grappling with the economic ripple effects caused by recent tariff, tax, and budgetary changes. Larger corporations with substantial cash reserves, secure employment, and affluent households are positioned to better absorb these shifts.

In contrast, smaller business owners like Ms. Golden, along with job seekers and lower- to middle-income families, are expected to encounter greater difficulties.

Smaller enterprises often lack the financial reserves to manage unexpected cost increases and do not have the negotiating leverage that large retailers, such as Walmart, wield to compel suppliers to reduce prices. Additionally, they may find it harder to access lines of credit that larger firms can utilize.