April 10, 2025
Retail Dive recently published an article featuring Greg Stoller, Master Lecturer of Strategy and Innovation, discussing how small businesses, including those manufacturing in the U.S., are feeling the sting of rising tariffs, particularly in the wake of new levies announced by the Trump administration.
Small businesses, lacking the capital reserves and bargaining power of larger retailers, are especially vulnerable to rising tariffs on goods from China and other countries. Boutiques face uncertainty as apparel costs rise by up to 30%, while businesses relying on overseas suppliers struggle to pass on higher expenses, especially when U.S. alternatives are more costly. Companies depending on silk from China also face sourcing challenges. Already impacted by the pandemic, these businesses are now battling rising costs and declining consumer spending, threatening their survival.
“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.
The uncertainty surrounding trade policies only deepens their challenges, as they face the possibility of having to close shop without the financial cushion that larger companies enjoy.
