Sudden tariff hikes. Confusing trade announcements. Shifting rules with zero warning. For America’s 35 million small businesses—97% of whom rely on imported goods—this isn’t just policy whiplash. It’s a full-blown crisis. In The Conversation, family business expert Peter Boumgarden and former SBA official Dilawar Syed explain how unpredictable trade moves are gutting Main Street, forcing small firms to choose between scrambling to rebuild supply chains or risking financial collapse.
One real-life example they cite: in April 2025, a small but fast-growing e-commerce business was hit with a 145% tariff on Chinese goods. The owner had two bad choices—rebuild her supply chain in another country, or wait it out and risk falling behind. She’s not alone. Over 70% of small business owners now say shifting trade policy creates a “whiplash effect” that severely disrupts their ability to plan.
Unlike large corporations with dedicated legal and compliance teams, small firms often have just one or two people wearing multiple hats. That means every hour spent interpreting trade announcements, filing new paperwork, or researching tariffs is time pulled from serving customers or managing cash flow. In this environment, constant policy changes don’t just create financial risk—they paralyze decision-making entirely.
The authors argue that tariff unpredictability impacts more than just importers. It ripples through the entire economy. Small manufacturers struggle to plan. Retailers must raise prices. Even companies that don’t import goods directly feel the effects through their vendors, suppliers, or customers. And in the worst-case scenario, a broader trade war could lead to declining consumer spending, job losses, and more closures of already vulnerable businesses.
So what’s the solution?
Boumgarden and Syed call for measured, gradual rollouts of any new tariff policies to give businesses time to prepare. They also urge the Small Business Administration (SBA) to step up—by offering low-interest financing for supply chain restructuring, providing education on evolving regulations, and reversing harmful cuts that have reduced its capacity by over 40% and shuttered key offices across major U.S. cities.
Their analysis also highlights the role universities can play. By expanding executive education, business consulting programs, and trade curriculum focused on small enterprises, schools can empower entrepreneurs to better navigate complex global markets and build resilience into their business models.
Ultimately, the takeaway is clear: America’s small businesses need support, not surprises. They power local economies, employ nearly half the U.S. workforce, and represent the entrepreneurial spirit that fuels national growth. Without a stable trade policy environment and adequate institutional backing, many will continue to suffer—not from poor management or bad products, but from forces far beyond their control.