Some small business owners say tariffs may put it on

Uncertainty on President Trump's ever-changing tariff agenda is already Fighting small businesses The operators said it was hard and threatened their survival.

10% baseline tax on all valid imported goods and Country-based taxes are imminentThe owner told CBS MoneyWatch that business operations have become even more challenging for nearly 35 million smaller businesses in the United States.

One of the most pressing challenges they face? Set a price high enough to absorb the cost of importing new responsibilities without driving customers.

A joint economic committee analysis found that 30% of small business owners surveyed by the National Federation of Independent Businesses in March said they planned to raise prices, the largest share reported in the past year. Increase prices It is one way to offset the rise in costs, while revising costs (including reducing labor costs) is another option.

The JEC found that hiring of less than 10 employees has dropped by 3%, or 366,400 jobs since President Trump took office. The JEC found that this was a 1.2% increase in recruitment in small businesses in the first few months of President Biden's presidency and a 0.1% drop in the first few months of President Trump's first term.

“The highest price” in 16 years

Shayai Lucero, owner of Earth and Sky Floral Designs, a small floral design business in Laguna, New Mexico, said she imported a large amount of flowers from Canada, Ecuador, Colombia and Peru. Because she is located in the desert, neither the local farm nor the garden can produce flowers all year round.

Lucero recently experienced what she called the “highest price increase” she saw in her 16 years in the floral business when a rose cost between 65 cents and 84 cents per stem, ranging from $1.89 to $2.44.

Lucerro told CBS MoneyWatch that “we received emails from several different farms we worked with.” As a result, her price increased, and the watch usually sold for $40 and now it costs $50.

“It’s not enough, what I should charge, but since my clients are not wealthy, I have to consider whether people will buy from me or will they go somewhere else?” Lucerro said, adding that the future of her business is uncertain as her own costs soar.

“I’ve been transparent with clients and trying to make them understand, but if I want too much, I might have to close,” she said. “It’s a completely different atmosphere.”

Chinese goods are “impossible”

Few businesses are not affected by tariffs, but the most vulnerable smaller institutions tend to operate with thinner profits. Some larger companies import goods before the tariffs come into effect and stock up. With less cash on hand, small businesses don't have the same capabilities.

“Small business owners are innovative, driven and messy – they often operate with thin profits and are constantly looking for new ways to grow,” Maggie Hassan, a ranking member of the Joint Economic Commission for the Joint Economic Commission, said in a statement. “But President Trump's tariffs are unnecessary.” Causing huge uncertainty For small business owners, force them to lay off employees, raise customers’ prices, and even close the door. ” she added.

Mike Roach co-owns Paloma Clothing, a 50-year-old women's clothing store located in Portland, Oregon, and sells labels made primarily in India and China.

Three to five months ago, he issued commodity values ​​for the new season, and then before tariffs in any country were issued. Today, up to 145% tariffs apply to Chinese goods, while goods entering the United States from India have a baseline tax of 10%.

“The companies we deal with are experiencing a stubbornness in trying to figure out what it is going to do. At this level, Chinese goods are nearly impossible,” he said. “This is a huge threat to the future of our business.”

Roach hopes his store’s 50th year business isn’t the last, but it’s a potential reality he faces.

“This is the worst, most uncertain situation we’ve ever been,” he said. “It’s worse than anything else because of uncertainty than not knowing what to do and what will continue in the future.”