May 14, 2025 — Washington, D.C. — As new trade tariffs loom, small businesses across the United States face escalating pressure that threatens their stability, profitability, and long-term viability.
While large corporations may have the resources to absorb sudden cost increases or pivot supply chains, small businesses—often operating with thin margins and fewer options—struggle to adapt to the pending policy shifts.
From increased import costs to disrupted production timelines and diminished consumer demand, small business owners say the tariffs represent a direct threat to their livelihoods.
The tariffs, currently under review by the U.S. Trade Representative’s office and reportedly targeting imports from China, Mexico, and the European Union, could impose new levies on everything from machinery and electronic components to textiles, food products, and raw materials.
Economic Headwinds for America’s Backbone
According to the U.S. Small Business Administration, small businesses account for 99.9% of all U.S. firms, employ nearly 47% of the private workforce, and generate 44% of U.S. economic activity. Yet, they are disproportionately vulnerable to sudden market disruptions and regulatory changes like those imposed by tariffs.
“These new tariffs would force us to raise prices at a time when our customers can least afford it,” said Susan Miller, owner of Miller Components, a family-run industrial parts supplier in Akron, Ohio. “We already deal with inflation, labour shortages, and high fuel costs. Add tariffs to the mix, and you’re asking small firms to do the impossible.”
Due to quality and pricing, Susan’s company sources metal fasteners and electrical switches from European manufacturers. The proposed tariffs would raise her input costs by as much as 25%, threatening her ability to fulfill contracts with American manufacturers, her largest customers.
Supply Chain Disruption Across Sectors
Across sectors—from agriculture and textiles to automotive and consumer electronics—the impact of proposed tariffs would ripple across every layer of business operations:
- Manufacturing: Machine shops relying on German tools or Japanese electronics fear component shortages and production delays.
- Retail: Independent stores already managing tight inventory margins face higher costs on imported goods from Asia.
- Food Services: Specialty importers and gourmet food businesses brace for supply constraints and rising prices.
Case in point: Riverbend Coffee Co., a mid-sized roaster in Portland, Oregon, imports green beans from Central America. Tariffs on packaging materials and logistics services are expected to increase the cost per pound by 18%. “We either pass those costs to customers or eat into margins,” said founder Miguel Alvarez. “Neither option is sustainable.”
Real Consequences in Real Time
Even before enactment, the uncertainty was already damaging. Small businesses were pausing capital investment, delaying hiring decisions, and sometimes shelving expansion plans.
According to a new survey by the National Federation of Independent Business (NFIB), 63% of small business owners say pending trade tariffs are already negatively affecting their outlook for 2025. Meanwhile, 41% have already raised prices, and 27% expect to reduce staff hours if the tariffs are implemented.
“Uncertainty is kryptonite for small business,” said Linda Brenner, policy director at the American Small Business Chamber of Commerce. “These companies don’t have the legal departments or global logistics teams of large multinationals. Every new regulation or tariff has a magnified effect.”
Global Consequences, Local Impact
Unlike previous tariffs targeting a narrow range of sectors, the proposed new sanctions are expansive in scope and affect multiple trade partners simultaneously. Industry analysts predict that:
- The automotive industry will face steep price hikes for electronic sensors, semiconductors, and aluminum frames.
- The apparel industry will see rising costs on raw textiles imported from Southeast Asia.
- The home goods sector will contend with delays and higher shipping rates for flat-pack furniture and appliances.
“This isn’t just an international policy—it’s a Main Street problem,” said Robert Wilson, Head of Sales and Marketing at GTFSolutions. This firm advises small and medium-sized businesses on financial instruments and trade finance. “Tariffs on their own are difficult. Tariffs, high interest rates, credit tightening, and a still-recovering supply chain are a disaster waiting to happen.”
GTFSolutions Offers Financial Lifelines
As the landscape shifts, companies like GTFSolutions are stepping up to offer bridge financing, working capital infusions, and risk mitigation strategies to help small enterprises stay afloat.
“Trade policy doesn’t have to be a death sentence,” said Alexander Jean-Baptiste, CEO of GTFSolutions. “With the right financing tools—like SBLC-backed credit lines, purchase order financing, and invoice factoring—businesses can withstand temporary shocks.”
One example is SunTech Lighting, a solar lamp manufacturer in Arizona, which secured a standby letter of credit (SBLC) through GTFS to secure discounted raw materials from a Malaysian supplier ahead of tariff deadlines. “Without GTFS, we would have had to walk away from a six-figure contract,” said founder Elena Rowe.
A Plea for Policy Certainty and Small Business Protections
Small business leaders nationwide are urging the federal government to reconsider blanket tariff strategies and instead focus on targeted trade enforcement, while offering transition relief for small firms.
Organizations like the Small Business Majority, Chambers of Commerce, and SCORE Mentorship Program have issued policy recommendations including:
- Exemptions for businesses under 500 employees.
- Federal tariff mitigation grants or low-interest loans.
- Temporary import tax credits or deductions.
- Early notification systems for tariff announcements.
“Small businesses should not become collateral damage in global trade wars,” said Sophia Brar, Chief Financial Officer at GTFSolutions. “Policymakers must recognize the fragility of these enterprises and take measures to insulate them from the unintended consequences of foreign policy tools.”
The Road Ahead
With final decisions expected from the USTR by mid-summer 2025, small businesses are bracing for what could be a difficult second half of the year. Many are advocating through local representatives, participating in trade associations, and exploring emergency funding options.
GTFSolutions urges all small business owners to assess their exposure now. Through its Trade Risk Readiness Assessment Program, GTFS offers free evaluations for companies facing disruption from tariffs or geopolitical instability.
“Preparation is power,” added Jean-Baptiste. “The businesses that survive this economic wave will be the ones that move first, not the ones that wait.”
About GTFSolutions
GTFSolutions is a leading international provider of trade finance, SBLCs, and commercial lending instruments for small and mid-sized enterprises. With decades of experience in credit enhancement, project finance, and structured capital, GTFSolutions empowers companies to overcome obstacles, unlock liquidity, and grow beyond borders.
For more information:
Website: www.GTFsolutions.com
Email: info@gtfsolutions.ca
Phone: 1-888-305-9992
Social Media: LinkedIn, X, Facebook, Instagram
Press Contact:
Robert Wilson
Head of Sales and Marketing
Email: info@gtfsolutions.ca