News Brief: Impact of Tariffs on Small Businesses
Summary
Small businesses across the U.S. are struggling under the weight of new tariffs, forcing them to freeze hiring, cut salaries, and take on high-interest loans. Economists warn these struggles could signal future economic trouble for larger companies.
Key Points
- Widespread Impact: Nearly a dozen small business owners report tariffs are forcing drastic measures to stay afloat.
- Financial Strain: Companies are taking loans with high interest rates (e.g., 32%) to pay tariff bills, cutting into profits.
- Operational Cuts: Hiring freezes, salary reductions, and scaled-back growth plans are common responses.
- Price Hikes & Sales Decline: Most businesses raise prices to offset costs, but this often leads to reduced consumer demand and lower sales.
- Supply Chain Challenges: Efforts to move production to low-tariff countries are often too expensive or ineffective due to broad tariff policies.
- Economic Warning: Small businesses are seen as the “canary in the coal mine,” with their struggles potentially foreshadowing impacts on larger businesses in the future.
- Legal Uncertainty: The legality of the tariffs is under review by the Supreme Court, but they remain in effect during the appeal process.
Case Studies
- AV Universal Corp (Footwear): Took a $250,000 loan at 32% interest; halted hiring; sales dropped 30% after price increases.
- Talus Products (Travel Accessories): Faces a severe profit “crimp”; sales on Amazon are “soft”; moving production was too costly.
- Village Lighting (Christmas Decor): CEO risks losing everything; used a home equity line to pay tariffs; sales down 8-10%.
- Picnic Time (Outdoor Goods): Froze hiring and innovation; Q3 sales down 20%; “all eggs in one basket” for the holiday season.
- Citibin (Trash Enclosures): Moved production to Vietnam, but new aluminum/steel tariffs made the move “somewhat pointless”; sales to homeowners down 25%.
- Reekon Tools (Digital Tools): Cut R&D spending by 20%; redirected hiring funds to pay tariffs; new product sales below projections despite price hikes.
新闻简报：关税对小企业的影响
总结
美国各地的小企业在新关税的重压下苦苦挣扎，被迫冻结招聘、削减工资并承担高息贷款。经济学家警告称，这些困境可能预示着大公司未来将面临的经济麻烦。
关键点
- 广泛影响：近十二位小企业主报告称，关税迫使他们采取严厉措施以维持运营。
- 财务压力：公司正在借高利率贷款（例如32%）来支付关税账单，侵蚀利润。
- 运营削减：常见的应对措施包括冻结招聘、降低工资和缩减增长计划。
- 价格上涨与销售下降：大多数企业通过提高价格来抵消成本，但这通常导致消费者需求减少和销售额下降。
- 供应链挑战：将生产转移到低关税国家的努力往往因成本过高或关税政策广泛而无效。
- 经济预警：小企业被视为“煤矿中的金丝雀”，它们的困境可能预示着未来对大企业的影响。
- 法律不确定性：关税的合法性正在由最高法院审理，但在上诉期间仍然有效。
案例研究
- AV Universal Corp（鞋类）：以32%的利率贷款25万美元；停止招聘；提价后销售额下降30%。
- Talus Products（旅行配件）：面临严重的利润“紧缩”；亚马逊销售“疲软”；转移生产成本过高。
- Village Lighting（圣诞装饰）：CEO面临失去一切的风险；用房屋净值信贷额度支付关税；销售额下降8-10%。
- Picnic Time（户外用品）：冻结招聘和创新；第三季度销售额下降20%；将“所有鸡蛋放在一个篮子里”指望假日季。
- Citibin（垃圾箱）：将生产转移到越南，但新的铝钢关税使此举“有点徒劳”；对房主的销售额下降25%。
- Reekon Tools（数字工具）：研发支出削减20%；将招聘资金转用于支付关税；尽管提价，新产品销售额仍低于预期。
Original Article Link: https://www.cnbc.com/2025/10/17/how-much-trump-tariffs-are-costing-small-businesses.html