President Donald Trump’s return to office has brought sweeping changes to US trade policy, with new tariffs hitting most imports. What began with levies on Chinese goods has quickly expanded to cover nearly every country, creating the most extensive tariff regime in over a century.
For many small and medium-sized businesses, the impact has been harsh. Jared Hendricks, owner of Utah-based Village Lighting Company, had to take a $1.5m loan against his home to manage sudden cost increases. “It’s been an absolute nightmare,” he said, adding that his shipments arriving after 1 August will face even steeper tariffs.
Most imports have been taxed at rates between 10% and 50% since April, and the next round of hikes takes effect on 1 August. Companies such as General Motors and Tesla have already absorbed hundreds of millions in additional costs, while toy giants Hasbro and Mattel have slashed sales forecasts.
Some industries, including steel, have welcomed the protections, but economists warn of slower US growth as profits shrink, investments falter, and prices rise. Goldman Sachs estimates the tariffs will shave 1 percentage point off growth this year.
Despite the disruption, Trump hails the tariffs as a win, claiming they are reviving US manufacturing, opening overseas markets, and generating record government revenues—over $100bn so far this fiscal year.
Yet many businesses are bracing for more pain. “I view the tariffs and the current trade war policy as the largest threat to our business,” said Julie Robbins, CEO of Earthquaker Devices. “There are so many ways this could go sideways.”
