In a recent development, President Donald Trump’s ongoing implementation of various tariffs has sent shockwaves through the ranks of small business owners who are already grappling with precarious profit margins. Trump’s latest move, announced on Monday, involves the imposition of a 25% tariff on steel and aluminum, with indications of more import duties on the horizon. Not too long ago, the administration had also enforced a 10% tariff on goods imported from China.
One such business owner feeling the impact is Sandra Payne, the proprietor of Denver Concrete Vibrator. Her company specializes in the production of tools used in settling concrete and other industrial processes, relying heavily on steel and other raw materials imported mainly from China, as well as from Canada and Mexico. Payne expressed her concerns, citing the significant blow to small businesses operating on slim profit margins. She highlighted the challenge of absorbing the increased costs without passing them on to customers, inevitably leading to substantial financial losses.
Although tariffs on Mexican and Canadian goods have been temporarily halted, small business owners remain on edge, uncertain about the potential repercussions if these tariffs are eventually enforced. Across the border in Canada, Julie Bednarski-Malik faces a similar dilemma with her snack company, Healthy Crunch, which operates in both Canadian and U.S. markets. She anticipates the need to raise prices in response to the tariffs but is currently adopting a cautious approach as the situation unfolds.
Meanwhile, in San Diego, Bar Zakheim operates Better Place Design & Build, specializing in constructing accessible dwelling units. Zakheim voiced his apprehension, particularly regarding the impact of tariffs on lumber, a crucial component in his business. With a significant portion of their lumber supply originating from Canada, the impending tariffs are projected to further escalate costs, amplifying financial strains exacerbated by the soaring housing market and interest rates.
Payne reiterated the ripple effect of the tariffs, underscoring how their repercussions would reverberate across the business ecosystem. As a supplier to other enterprises rather than end-users, she emphasized that any disruptions in her operations would cascade through the entire supply chain, impacting all stakeholders down the line.
