Small business owners brace for Trump's proposed tariffs

abcnews.go.com:

Small businesses are bracing for stiff tariffs that President-elect Donald Trump has proposed as one of his first actions when he takes office

Small businesses are bracing for stiff tariffs that President-elect Donald Trump has proposed as one of his first actions when he takes office.

Trump has proposed importers pay a 25% tax on all products entering the country from Canada and Mexico, and an additional 10% tariff on goods from China, as one of his first executive orders. He previously floated a tariff of up to 20% on everything else the United States imports.

This means small businesses may end up paying more for goods and services. Small business owners say they're waiting to see what final form the tariffs take, but are bracing for higher costs that they may in turn need to pass on to consumers.

Laurel Orley, cofounder and CEO of Nashville-based sprouted nut snack company Daily Crunch, said at first she didn't think the tariffs would affect her business, because she doesn't import very much. But she realized the tariffs will have a ripple effect. For example, she had planned on sourcing bags from China to save 5 cents a bag. But with the tariffs, she might need to scuttle that plan.

“That was one of our big initiatives for 2025, moving all our bags to China for 15 cents a bag,” she said. “And now I don’t know if we can save any money on the bags when the tariffs go into effect.”

Warehouse prices are going up because of the expected tariffs, too, Orley said. Her warehouse provider said demand has been increasing since the tariffs were announced.

“As many other companies are buying bulk inventory overseas to get ahead of tariffs, warehouse availability is becoming limited, which will increase costs for everyone,”