As the landscape of American commerce continues to evolve under the shadow of significant tariffs imposed during the Trump administration, small and medium businesses (SMBs) are grappling with profound challenges. A recent survey, conducted by Freightos, highlights that 43 percent of SMBs froze their imports in April 2025, only to now face a rush of shipments as they scramble to meet market demands. This frenetic pace is likely to compress the early peak season, inevitably leading to congestion during the busy summer months.
Approximately 42 percent of respondents in the survey rated the impact of current tariffs at a maximum score of 10 out of 10, though this figure has decreased from 60 percent earlier in April. While some businesses express a slightly less overwhelming sense of panic, many still describe their situation as existential. Central to their concerns is the ongoing unpredictability surrounding tariffs which has forced businesses to rethink operational strategies, with some considering drastic measures, including a complete discontinuation of imports due to exorbitant costs.
“I can’t import goods. Thirty percent tariffs are still too high for a small business,” said one affected business owner, illustrating the harsh realities that many face. This sentiment echoes across various sectors, with small firms continuing to experience spiralling expenses and an inability to plan adequately for the future. In some cases, business owners reported paying as much as 145 percent on their last shipments, raising critical questions about their viability as ongoing concerns.
Despite these tumultuous conditions, the impact of tariffs has not yet fully permeated consumer spending habits. Many businesses believe that upcoming holiday sales, notably around Memorial Day, will remain largely unaffected, as indicated by an average disruption score of 4.3 out of 10 among surveyed proprietors. While the original intent of the tariffs was to incentivise a shift in U.S. sourcing patterns—one that would ostensibly bolster domestic manufacturing—the actual adjustments have thus far been minimal, with only six percent of businesses having changed their manufacturing locations in practice.
The underlying economic conditions are further complicated by a broader narrative of uncertainty that has emerged since the implementation of such tariffs. Critics have highlighted that while the government touts its success in fostering investment and job creation through these policies, the financial strain on businesses and consumers is palpable. Major companies like Walmart have publicly announced price hikes attributed to increased tariff costs, highlighting the pervasive nature of this challenge across the corporate landscape.
Small businesses, which operate on tighter margins and less leverage than their larger counterparts, are particularly susceptible to shifts in tariff policy. An earlier study noted that 42 percent of small firms reported cost increases due to tariffs, which, coupled with shipment delays, has created significant operational challenges. Many firms are also now facing the additional burden of retaliatory tariffs from other nations, further complicating their export capabilities.
Notably, some businesses have responded to these challenges by exploring domestic manufacturing options. However, for many, the costs associated with moving production to the U.S. are prohibitively high. Companies like Lay-n-Go, which initially relocated production away from China, found that the financial strain did not alleviate the pressure on their profit margins. Founder Fazackerley’s experience succinctly encapsulates the struggle many small businesses endure: the shift towards domestic production remains a distant goal fraught with obstacles.
Amidst these ongoing struggles, some industry voices argue that the tariffs are necessary to create a fairer competitive playground for U.S. manufacturers. Supporters claim that the tariffs have the potential to level the playing field, thereby strengthening the domestic market. Yet, the prevailing sentiment among many business owners remains one of trepidation. They frequently express concerns about the lack of stable policies that provide a clear pathway forward, highlighting the need for governmental support that aligns with the realities faced by small businesses.
In this challenging environment, the resilience of small enterprises is tested, as they strive to adapt and endure. With the spectre of tariffs looming large, their future remains uncertain, hinging on both their ability to navigate these turbulent waters and the responsiveness of policy frameworks designed to support them.
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Source: Noah Wire Services
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