How tariffs are crushing small businesses: ‘Nobody in power seems to care’

illuminem summarises for you the essential news of the day. Read the full piece on The Wall Street Journal or enjoy below:

🗞️ Driving the news: U.S. small businesses are being severely impacted by the ongoing 145% tariffs on imports from China, forcing many to cut staff, suspend investments, and tap into personal savings to stay afloat
• Entrepreneurs across sectors — from tent manufacturers to consumer goods producers — warn they are nearing a financial breaking point while awaiting policy relief or a durable trade agreement

🔭 The context: The Trump-era tariff escalations, aimed at reducing reliance on Chinese manufacturing and addressing trade imbalances, have persisted into 2025, raising costs for U.S. importers
• Small firms, which often lack the scale and capital to shift supply chains or absorb surcharges, have been hit disproportionately hard
• This comes as larger firms have better navigated the policy through overseas diversification and lobbying influence

🌍 Why it matters for the planet: Many of the affected businesses operate in outdoor gear, wellness products, and niche sustainability-focused consumer goods — sectors that contribute to more environmentally conscious consumption
• Excessive tariffs risk hollowing out smaller eco-innovators, reducing competition, and concentrating market power in less sustainable incumbents
• The current regime also discourages cleaner global supply chain development by reducing flexibility and reinvestment capacity

⏭️ What's next: While the recent 90-day U.S.–China tariff truce offers some hope, small business owners stress that uncertainty remains too high for long-term planning
• Lawmakers are facing growing pressure to create exemptions for small enterprises or offer targeted relief mechanisms
• Industry groups are lobbying for a reassessment of tariff structures that disproportionately penalize smaller importers and green startups

💬 One quote: “Nobody in power seems to care,” — the founder of a New Hampshire consumer-products company, who recently laid off over half his staff due to surging import fees

📈 One stat: A San Francisco card-game company received an $8,752 tariff bill on a $5,649 shipment — representing a 155% fee that exceeds the cost of the goods themselves

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