How Trump’s 145% China Tariffs Could Devastate American Small Businesses
What happens when small businesses face a 145% tariff on the materials they depend on? For many, it could be the beginning of the end.
Let’s break it down — in plain English — and talk about what these tariffs really mean for the heart of America’s economy: our small businesses.
Meet the Laceys: Small Business Dreams at Risk
Christina and Ian Lacey aren’t corporate executives or bigwig CEOs. They’re just two passionate, hardworking people from Denver who turned their love of music into a thriving small business — Retuned Jewelry. They create handcrafted jewelry from donated guitar and bass strings, selling their unique pieces at music and art festivals across the country.
But here’s the problem: while the strings they use are donated, everything else they need — beads, clasps, chains — comes from China. And with the new 145% tariffs on Chinese goods under former President Donald Trump’s plan, their costs are skyrocketing.
“There’s no facility here that makes what we need,” Ian Lacey told CNN.
They’ve already had to raise prices, but how much more can their customers afford? How long can they keep going?
Tariffs Hit Small Businesses the Hardest
Unlike big corporations, small businesses often don’t have the cash reserves or supplier networks to weather sudden cost increases. That’s the warning from John Arensmeyer, founder of Small Business Majority.
In his words:
“Small businesses have thinner margins and less leverage to negotiate with suppliers.”
That means higher prices for you, potential layoffs for staff, delayed growth plans — or even business closures.
A Textile Company Feeling the Squeeze
The Mitchell Group in Illinois is a second-generation family business that makes coated textiles. They’re now paying a 45% tariff plus duties to import materials that may sit on shelves for months.
Ann Brunett, their COO, explains:
“That ties up our cash flow — and it’s cash we need to operate.”
Even as they explore other suppliers in Vietnam, India, or Europe, none offer the scale, speed, or consistency China does. Bill Fisch, the company’s president, puts it plainly:
“No one has the infrastructure China does.”
Can These Tariffs Bring Manufacturing Back to the U.S.?
It’s a fair question — and one President Trump has hinted at. The idea is that if foreign goods become too expensive, we’ll start making things here again.
But experts say that’s not realistic in the short term. Arensmeyer puts it bluntly:
“You can’t just say, ‘Oh, we’re going to have a tariff, and now people are going to buy domestically,’ when we don’t have those products being made domestically.”
In fact, many of the materials small businesses rely on simply aren’t produced in the U.S. anymore, especially in industries like textiles, where domestic manufacturing has been declining for decades.
Why This Matters (And What It Teaches Us)
This isn’t just about numbers and trade policy — it’s about real people. Hardworking Americans who took a risk, built something meaningful, and now face losing it all because of decisions far beyond their control.
So next time you hear about tariffs in the news, remember the Laceys, the Mitchell Group, and the thousands of other small businesses caught in the middle.
Because when policies don’t consider the little guys, it’s the little guys who pay the biggest price.
Conclusively: How Trump’s Tariffs Could Hurt Small Businesses
- Trump’s 145% tariffs on Chinese goods drastically increase costs for small businesses.
- Many of the materials they need aren’t made in the U.S., so they have no choice but to import.
- Small businesses don’t have deep cash reserves or alternate suppliers, making them especially vulnerable.
- Experts warn that domestic production won’t ramp up quickly, leaving a long-term gap in the supply chain.
- The result? Higher prices, staff cuts, or closures — and a real threat to the backbone of America’s economy.
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