Impact of Trump’s Tariffs on American Workers Analyzed by John McCormack
American small businesses face significant challenges due to President Donald Trump’s tariffs, which he termed “Liberation Day” tariffs, imposed on April 2, 2025. These tariffs have created widespread uncertainty for entrepreneurs across the country.
Trump’s Tariffs: A Burden on Entrepreneurs
One notable case is Beth Benike, a mother and entrepreneur from Oronoco, Minnesota. Benike created the Busy Baby Mat, designed to keep infants occupied during meals, and started her business in 2017. By 2019, she had her first sale, followed by a successful pitch on the TV show Shark Tank. Her product gained traction, landing deals with major retailers like Target and Walmart.
Impact of Tariffs on Business Operations
However, the tariffs imposed by Trump disrupted her operations severely. With a shipment worth $160,000 en route from China, Benike faced an additional $230,000 in tariffs. Unable to cover this cost in the necessary timeframe, her product remained stuck in China for two months. This inaction led to lost sales and staff reductions, as her team shrank from five employees to three.
- Benike reported approximately $500,000 in lost revenue.
- She had to exhaust her retirement savings and personal funds to keep her business afloat.
Benike now hopes for relief if the U.S. Supreme Court rules that Trump’s tariffs were enacted without proper legal authority. If ruled against, she may get back some of the $50,000 she paid in tariffs, but it may not alleviate all her concerns about future changes to tariff policies.
Wider Economic Concerns for Small Businesses
The uncertainty surrounding tariffs isn’t an isolated case. Dan Turner, who runs Turner Hydraulics in Pennsylvania, faced potential tariffs of $84,000 on a $49,000 order from China. The unpredictability led him to seek alternative suppliers, fearing further developments might escalate costs unexpectedly. Ultimately, while the situation improved slightly, his business still experienced a revenue decline of over 10% in 2025.
- Turner now provides variable price quotes based on potential tariff changes.
- Consumers hesitated to order due to fluctuating costs, complicating sales forecasts.
Similarly, Hanna Scholz, owner of Bike Friday in Oregon, witnessed a 17% drop in sales due to the tariffs affecting her supplies, despite manufacturing domestically. Her company faced multiple challenges, including increased costs and employee hours cut, which added pressure to an already difficult financial landscape.
Legal and Economic Future
The potential Supreme Court ruling could offer either a resolution or further complications regarding the tariffs. Business owners like Benike, Turner, and Scholz emphasize that the current business climate is chaotic and unpredictable, indicating a need for clearer policies. Until more definitive guidelines are established, small business owners will continue to navigate this turbulent environment, holding onto hopes for stability and relief.
As is evident, the impact of Trump’s tariffs is predominantly felt by American businesses and consumers, who bear the brunt of these financial policies, challenging the very foundations of their entrepreneurial endeavors.
