April 22, 2025
Supply Chain Dive recently published an article featuring Greg Stoller, Master Lecturer of Strategy and Innovation, discussing how small U.S. businesses, especially boutiques, direct-to-consumer brands, and local manufacturers, are struggling to navigate the Trump administration’s shifting and steepening tariff policies.
Small businesses are especially vulnerable to the ripple effects of steep and unpredictable tariffs, lacking the financial cushion, diversified supply chains, and bargaining power that large retailers like Walmart enjoy. Unlike big-box stores that can absorb cost increases or adjust pricing strategies, many smaller retailers face limited sourcing alternatives and shrinking margins. The apparel and footwear sectors are particularly exposed, with analysts estimating merchandise costs could rise by as much as 30%.
“A Walmart of the world, the Costcos of the world — they have the capital reserves to withstand what’s happening right now. If they need to lower prices, if they need to raise prices, if their customers are delayed in paying, if they lose a few customers — none of this is going to affect Walmart. For a small business, this could be catastrophic,” Stoller adds.
Many fear that without government support, small businesses may not survive prolonged economic pressure.
