Trump has proposed that importers pay a 25% tax on all products entering the country from Canada and Mexico and add a 10% tariff on goods from China, as one of his first executive orders. He set a tariff beforehand Up to 20% on everything else the United States imports.
This means that small businesses can pay more for goods and services. Small business owners said they’re waiting to see what final form the tariffs will take, but they’re anticipating higher costs they’ll have to pass on to consumers.
Laurel Orley, founder and CEO of the Nashville-based Daily Crunch nut snack company, said at first she didn’t think the tariffs would affect her business because she doesn’t import much. But he realized that the tariffs will have a big impact. For example, he planned to source bags from China to save 5 cents per bag. But with the tariffs, you may have to scupper that plan.
“That was one of our big initiatives for 2025, moving all bags to China for 15 cents a bag,” he said. “And now I don’t know if we’re going to save any money on bags when the tariffs go into effect.”
Warehouse prices are also rising due to expected tariffs, Orley said. Its warehouse supplier said demand has been increasing since the tariffs were announced.
“With many other companies buying bulk inventory overseas to avoid tariffs, it’s limiting warehouse availability, which will increase costs for everyone,” he said.
So Orley is trying to lock in a warehouse contract through 2025 and find a third-party logistics provider by the year, “to anticipate what’s coming and plan ahead as much as we can,” he said.
Across the Canadian border, Julie Bednarski-Mali runs another snack company, Healthy Crunch, based in Mississauga, Ont., that specializes in foods that are free of the 11 major food allergens, including peanuts, tree nuts and dairy, as well as foods that are low in them. sugar
It sells its products in retail stores in both Canada and the US, and said the tariffs would affect consumers on both sides.
“If you have a severe anaphylactic reaction to some type of milk or soy and you can’t find a product because we’re the only ones in the U.S. that do that, it’s going to be a lot more expensive for U.S. consumers.” Bednarski-Mali said. “So I think these tariffs will not only penalize, you know, other countries like Canada, but consumers in the US as well.”
He is holding off on making major changes to his business until the tariffs are finalized, but expects higher prices.
“Ultimately, the consumer will have to pay at the end of the day because our margins are very tight starting with our food prices, (which) have increased dramatically over the last few years,” he said. “So there’s not much margin left to keep the same price and keep that price while receiving an additional 25% tariff on our product.”
