As the US economy continues to face challenges due to trade policy shifts, small businesses are feeling the pinch. With over 97% of US importers being small businesses, they’re often left to navigate uncertainty on their own, without access to large teams of analysts to inform their decision-making.
The Trump administration’s unpredictable approach to trade policy has led to rapid changes in tariff rates, causing “whiplash effect” among small business owners. With over 70% saying that constant shifts in trade policy create difficulties in planning, it’s clear that this uncertainty is taking a toll on day-to-day operations.
For many small businesses, every hour spent focusing on trade policy news or paperwork means precious time away from core operations. This makes them particularly vulnerable to disruptions caused by tariff policies. A recent survey found that the biggest challenge of tariff policies for small businesses is indeed the sheer uncertainty they cause.
While some argue that tariffs alone can bring manufacturing back to the US, this approach often falls short due to a lack of workers qualified for high-skilled roles. Creating pathways for legal immigration and investing in job training would be crucial in addressing this issue.
To support small businesses, policymakers could provide more government-backed funding and training. The Small Business Administration (SBA) has already faced criticism for slashing its workforce and closing offices. Universities also play a vital role in supporting small businesses through teaching core management skills and providing technical support.
With 35 million small businesses driving the US economy, it’s essential that leaders take action to ensure Main Streets thrive. By taking a slow and steady approach to implementing final negotiated changes to trade policy, policymakers can give small businesses time to prepare and adapt.
Source: https://theconversation.com/for-americas-35m-small-businesses-tariff-uncertainty-hits-especially-hard-262306