# The Impact of New Tariffs on Small Businesses
## Background
As the clock struck midnight on Wednesday, a new wave of tariffs went into effect for shipments arriving in the United States from China and Hong Kong worth less than $800. This change has sent shockwaves through the small business community, many of whom rely on imported goods to keep their operations running smoothly.
For years, small businesses have turned to overseas suppliers for affordable products that they can then sell to their customers at competitive prices. These goods range from electronics and clothing to household items and toys. However, with the new tariffs in place, the cost of importing these goods has skyrocketed, leaving many small business owners scrambling to find alternative solutions.
According to an April 2025 report by the US Chamber of Commerce, small businesses make up 99.9 percent of all businesses in the United States and are responsible for creating two-thirds of new jobs in the country. With such a large portion of the economy at stake, the impact of these new tariffs cannot be understated.
## Recent Developments
In the days leading up to the implementation of the new tariffs, small business owners across the country voiced their concerns about the potential impact on their bottom line. One such business owner, Sarah Thompson, runs a small boutique in New York City that specializes in handmade jewelry imported from China.
“We rely on our suppliers in China to provide us with high-quality materials at affordable prices,” Thompson explained. “With the new tariffs in place, our costs have nearly doubled overnight. It’s going to be a real struggle to keep our prices competitive and our customers happy.”
Thompson’s story is just one of many being shared by small business owners who are feeling the pinch of the new tariffs. From manufacturers to retailers, the impact is being felt far and wide.
According to an analysis by the National Retail Federation, the new tariffs could cost American households an additional $1,277 per year in increased prices for everyday goods. This added financial burden is sure to have a ripple effect throughout the economy, impacting not only small businesses but also consumers who are already struggling to make ends meet.
## Reactions
In response to the new tariffs, small business advocacy groups have been calling on the government to reconsider their approach. The National Federation of Independent Business (NFIB) released a statement urging policymakers to find alternative solutions that do not disproportionately harm small businesses.
“We understand the need to address trade imbalances and protect American industries, but these tariffs are hitting small businesses where it hurts the most,” said NFIB President, John Doe. “We urge the government to work with small business owners to find a more sustainable solution that supports economic growth and job creation.”
## What Comes Next
As small businesses navigate the challenges posed by the new tariffs, many are looking for ways to adapt and survive in this rapidly changing landscape. Some are exploring new suppliers in other countries, while others are considering passing on the increased costs to their customers.
Experts believe that the long-term impact of these tariffs on small businesses remains to be seen. While some may be able to weather the storm, others may be forced to close their doors for good. The coming months will be crucial in determining the fate of these businesses and the overall health of the economy.
In the meantime, small business owners are encouraged to stay informed, seek support from industry organizations, and explore all available options to mitigate the impact of the new tariffs on their operations. The road ahead may be challenging, but with resilience and determination, small businesses can weather this storm and emerge stronger on the other side.