Despite the recent 90-day tariff pause, uncertainty remains as business brace for any new changes in trade policy by the Trump administration. As policymakers insist tariffs will protect American industries, small-business owners understand that they will function as an additional tax — one that will hurt their bottom line and raise costs on consumers. A new Small Business Majority poll found that a majority of entrepreneurs worry tariffs will harm them directly while 77 percent also worry about the larger economic fallout. 

Small-business owners like me know what it’s like to navigate economic uncertainty and adapt to changes in international trade. During the COVID years, we found a way to thrive despite the massive disruptions to supply chains. But recent proposals on trade have made businesses worried. Tariffs will leave small-business owners no choice but to pass extra costs on to consumers, which will make it harder to stay competitive. 

As a candy maker, I have watched sugar and cocoa prices soar in the last few years. Most sugar imports come from countries in Central America, South America, Asia, Africa and the Caribbean, while cocoa products come primarily from Africa, Malaysia and Indonesia. With President Donald Trump’s recent announcement, I am expecting to see tariffs placed on sugar and cocoa coming from all foreign countries.

Another concern is that nearly 60 percent of U.S. export sales of chocolate and confectionery are destined for Canada and Mexico. If these countries implement tariffs on our products, we would become less competitive compared to local or other international producers.  

The data also backs up the impact on consumers. According to a Peterson Institute for International Economics analysis, proposed tariffs could cost the average American more than $1,200 annually. Indeed, the Federal Reserve Bank of New York found that tariffs under the first Trump administration — more modest than the ones now envisioned — cost the typical household over $400 annually.

Even more concerning is the financial burden on those grappling with inflation. The World Trade Organization warns that tariffs will especially harm low-income households, who spend more of their income on essential goods such as food and clothing. 

While policymakers mention the need to target foreign manufacturers and support certain industries, they often overlook the disproportionate impact on small businesses. Unlike large corporations, small businesses lack the resources to absorb new costs and regulatory mandates. They also lack the scale and leverage to quickly pivot to new suppliers. When faced with these uncertainties, sometimes the only option small businesses have is to downsize or raise prices. 

Every dollar spent by small businesses on tariff fees could be used to grow — whether it’s hiring staff, streamlining operations or marketing products. While policymakers may view tariffs in abstract terms, their impact on small businesses and consumers is concrete and immediate. These policies can hinder job creation, stifle local economies and hike prices.

For entrepreneurs struggling to compete in a globalized marketplace, even the smallest regulatory shifts could mean the difference between growth and closure. When considering new trade regulations, public officials should prioritize the long-term well-being of small businesses and their communities. 

Small-business owners are not looking for handouts; they’re just asking for a fair marketplace where they can thrive and drive America’s prosperity forward. If the Trump administration and Congress genuinely want to strengthen American competitiveness, they would not saddle small businesses with policies that hamper growth and innovation. Establishing stable trade policies is the first step toward opening new markets for our small-business economy.

When small businesses succeed, America is more prosperous and competitive on the world stage. As small-business owners anticipate changes in trade policy, policymakers should champion our interests and recognize the vital role we play in spurring economic growth.

Joe Dutra is the owner of Kimmie Candy in Reno and the recipient of the President's "E" Award for his company's work in developing export markets.

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