What the USA’s Tariffs Mean for Small Businesses

CAS

Wednesday, September 24, 2025

What the USA’s Tariffs Mean for Small Businesses

Sunita Mathaiya

Eight months into President Trump’s second term, trade relations between the US and several other states have been subject to uncertainty, constant change, and tension. The introduction of tariffs from February 1st, only 11 days into his presidency, via executive order, marked the beginning of a long stretch of uncertainty for businesses and consumers alike.

Timeline & Affected Industries - highlights:

February:

1st - the first set of tariffs is introduced, affecting Canada (25%), Mexico (25%) and China (10%). Canada and Mexico’s tariffs are paused for a 30-day period on the 3rd, but China’s tariffs come into effect on the 4th.

10th - A 25% tariff on all aluminium and steel imports is announced, coming into effect in mid-March.

13th - Trump signs the ‘Fair and Reciprocal Plan’ memo, ordering a trade investigation to end by the start of April.

25th - a probe into copper imports is ordered.

March:

1st - a probe into lumber imports is ordered.

4th - China’s goods receive an additional 10% tariff, and Canada and Mexico’s receive some exceptions but are in effect.

13th - Tensions with the EU become more apparent, with Trump threatening a 200% tariff on their alcohol in response to their retaliation to his steel and aluminium tariffs.

April:

2nd - Trump announces a 10% universal tariff on goods imported (implemented on the 5th) and reciprocal tariffs for several states (implemented on the 9th).

3rd - 25% tariff on imported cars is implemented.

9th - hours after they are implemented, a 90-day pause is ordered on the reciprocal tariffs, with the exception of China. China and the US continue their back-and-forth regarding tariffs.

May:

3rd - 25% tariff on auto parts is implemented.

12th - the US and China roll back their tariffs after talks were held in Geneva. Both parties reduce tariffs to 10% from highs of 145% and 125% respectively.

23rd & 25th - Trump threatens to implement a 50% tariff on EU goods on June 1st, but delays it to July 9th after a phone call with the European Commission President.

28th - the Federal Court blocks some of Trump’s tariffs, including the universal 10% and the reciprocal tariffs. However, Trump’s administration immediately filed an appeal, but the Federal Appeal Court allows the tariffs to remain in place in less than 24 hours.

June:

4th - tariffs on steel and aluminium rise to 50%.

July:

7th - the pause on reciprocal tariffs is extended from July 9th to August 1st.

11th & 12th - Trump threatens tariffs on Canada, Brazil, the EU, and Mexico.

22nd - 27th - Trump announces trade agreements with Indonesia, Japan, the Philippines, and the EU.

31st - trade agreement with South Korea announced, and ‘de minimis’ tax exemption comes to an end.

August:

6th - 50% tariff on Brazilian goods goes into effect.

7th - reciprocal tariffs implemented.

11th - tax reduction agreement with China is extended, but now at 10%.

21st - The US and EU release a joint statement announcing a 15% tariff ceiling on goods, with certain exemptions.

Affected Industries:

Forestry
Oil and gas extraction
Construction
Food and beverage manufacturing
Pharmaceutical manufacturing
Pharmaceutical retail
Retail trade
E-commerce
Motor vehicle sales
Transportation
Shipping
Postal and courier services
Film and Television

How small businesses have stayed relatively unaffected:

Until the end of July, large corporations were the main parties affected by these tariffs. The scale of their operations mandates hefty imports or decisions to re-route their suppliers to US-based businesses, but the scale of their orders ensured they still had to use imported goods. Small businesses, on the other hand, were likely to remain unaffected due to the ‘de minimis’ tax exemptions. First enacted in 1938 but amended over the years, ‘de minimis’ allowed orders valued at under $800 to be imported duty free.

This allowed small businesses to continue operations as normal, with the exception of possibly having to make smaller, more frequent orders, with over 1.4 billion parcels of this nature being imported in 2024. For the most part, nothing really had to change.

What Now?

While large businesses and multi-national corporations have teams on hand to advise on how to navigate the increased costs and effects of these tariffs, as well as the financial ability to absorb some of the costs involved, small businesses typically do not have those options. Often, small businesses are operated by very few people, if there is even a team, and do not have the financial bandwidth to absorb the additional costs introduced by tariffs. Instead, these costs have to be pushed to consumers, adding to their (typically) higher-than-average prices due to the labour and time involved, especially compared to large, automated corporations. Coupled with the shortage of skilled work in the US and the increased costs of machines (again, tariffs), the 35 million small businesses of the USA find themselves with very little room to manoeuvre.

For US-Based organisations, these tariffs have created uncertainty regarding supply chains. For those importing supplies, these costs would force selling prices to skyrocket, risking the loss of customers in favour of larger and cheaper brands. For those on the outside, their losses are mainly customers, with many business owners discussing their upcoming inability to sell to the US, and how many sales they will lose as a result. Exacerbating the issue, shipping companies have now begun to halt operations in the US. DHL, Royal Mail, the Austria Post, and several other international shipping companies are halting their shipments to the USA in anticipation of what the new implemented tariffs include, and of further clarity regarding new processes.

While the situation may seem dire for small businesses, President Trump’s tariff decisions have been anything but consistent. Based on previous decisions, and the powers of the Judiciary and Legislative federal bodies, the situation might change in a matter of days, weeks, or months.