Economists generally oppose tariffs as they lead to increased prices for consumers, which many company executives are already warning about. Small business owners who struggled to adapt to Trump’s initial tariffs are concerned about the potential impact of steeper and more extensive tariffs. While Trump’s team argues that tariffs created jobs and investment without inflation in his first term, analysts disagree, with concerns about higher inflation and lower growth under his proposed trade policies.
Many small business owners, like the owner of the Virginia Beer Company and the founder of a stationery company, are already feeling the effects of tariffs and are preparing for potential price hikes. Other small businesses, such as a wine shop in Boston, fear that tariffs could put them out of business by driving up prices and reducing profits for distributors. The uncertainty surrounding tariffs has businesses considering various strategies, such as stockpiling inventory or adding tariff surcharges to their products to show customers how costs are affected.
Overall, small business owners are concerned about the implications of Trump’s proposed tariffs and are preparing for potential price increases and shifts in supply chains. Many fear that tariffs could drive them out of business, affecting industries across the board and potentially leading to higher prices for consumers.
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