The impact of tariffs is hitting small businesses hard, especially in the food and retail sectors. One notable example is Molly Moon’s Homemade Ice Cream, based in Seattle, where the company sources 90% of its ingredients locally. However, certain key ingredients like chocolate, vanilla, and cane sugar, along with coconut for vegan flavors, must be imported. These ingredients, along with disposable utensils, are subject to tariffs, and owner Molly Moon predicts that the increased costs will wipe out 50% of her profits for the year. If the “Liberation Day” tariffs are fully implemented, she fears the business will no longer be profitable.
Many small businesses, particularly those that rely on imported goods, are struggling to adjust to the higher tariffs. With small margins and the uncertainty of shifting policies, these businesses face increased costs and supply chain disruptions. Some owners, like Angela Hawkins of Bamblu, a bamboo bedding company, are feeling the immediate impact, with canceled orders and inventory shortages. Hawkins, who imports from China, expressed frustration that long-term solutions, like tax relief, won’t help businesses facing immediate problems.
Small businesses, which typically lack the resources of larger companies, are vulnerable to these tariff-related changes. Republicans argue that tax cuts and deregulation will eventually provide relief, but many small business owners remain unconvinced. Some even worry that proposed spending cuts could hurt them in the long run, particularly when it comes to employee healthcare.
The U.S. Chamber of Commerce has pushed for tariff exemptions for small businesses, but President Trump has downplayed the need for such exemptions, insisting that small businesses would thrive if they produce goods domestically. However, the reality for many small business owners is that tariffs are contributing to uncertainty and financial strain, and many are left wondering if the benefits of new trade deals will outweigh the short-term damage caused by the current trade policies.
Related topics:
- Minnesotans Celebrate Warm Mother’s Day with Ice Cream and Flowers at Sailer’s Greenhouse
- Snake Found Inside Ice Cream Bar Shocks Thai Man, Sparks Online Outrage
- Ammonia Gas Leak at Ice Cream Factory Sparks Panic in Mathura Neighborhood
