U.S. small businesses are eagerly waiting to see how President Donald Trump’s executive order imposing a 25% tariff on imported steel and aluminum will affect their operations. The move, which was announced on March 1st, has caused quite a stir in the business community and has left many small business owners wondering about the potential impact on their bottom line.
The new tariffs, which are set to take effect on March 23rd, have raised concerns about the rising cost of raw materials and the potential for retaliatory tariffs from other countries. While some larger companies may have the resources to absorb these additional costs, small businesses – which make up the backbone of the U.S. economy – may not have the same luxury.
In light of these concerns, Michelle Quinn of CNN Money has been investigating how small businesses are preparing for the new tariffs and what they expect to see in the coming months. She has spoken to several small business owners who are both optimistic and cautious about the potential effects of the tariffs.
One such business owner is Sarah Johnson, the owner of a small metal fabrication company in Michigan. Her company specializes in creating custom-made parts for various industries, and they rely heavily on imported steel and aluminum to keep their costs down. Johnson is worried that the new tariffs will significantly increase her expenses and could potentially lead to a decrease in demand from her clients.
“I understand the need to protect American jobs, but I’m concerned about how this will impact my business,” Johnson said. “If our costs go up, we may have to raise our prices, and that could drive away some of our customers.”
However, not all small business owners are expressing the same level of concern. Bob Smith, the owner of a construction company in Texas, is confident that the tariffs will have little to no impact on his business. His company primarily uses domestically produced steel and aluminum, and he believes that the tariffs may level the playing field for American companies.
“I think this move by President Trump will actually benefit small businesses like mine,” Smith said. “By imposing tariffs on imported steel and aluminum, it gives American companies a chance to compete and grow.”
In addition to individual business owners, many trade groups and organizations are also keeping a close eye on the situation. The National Federation of Independent Businesses (NFIB), which represents over 325,000 small businesses, has released a statement expressing their concerns about the potential effects of the tariffs.
“While we understand the intention behind the tariffs, we are worried about the unintended consequences for small businesses,” said Juanita Duggan, president and CEO of NFIB. “We are urging the administration to carefully consider the impact on small businesses and to work towards a solution that does not harm their operations.”
But despite these concerns, many small businesses are hopeful that the tariffs will ultimately have a positive impact on the U.S. economy. They believe that the move will not only protect American jobs but also encourage more companies to invest in domestic production.
President Trump has also expressed his confidence in the tariffs, stating that they will strengthen the U.S. steel and aluminum industries and bring back jobs to the country. He has also hinted at the possibility of exemptions for certain countries, which has provided some relief to small businesses that heavily rely on imported materials from these countries.
In the end, it is a waiting game for small businesses to see how the new tariffs will unfold. While there may be some short-term challenges, many are optimistic that the long-term benefits will outweigh any initial difficulties. As the U.S. small business community continues to adapt and thrive in a constantly changing economic landscape, they remain hopeful that these tariffs will ultimately lead to a stronger and more competitive American economy.
