Small Businesses Struggle Amid Trump’s Shifting Tariff Policies

Small businesses across the United States are grappling with uncertainty as President Donald Trump’s shifting tariff policies continue to disrupt operations. A recent court ruling found that Trump overstepped his authority in imposing several import levies — only for an appeals court to pause the decision a day later, adding to the confusion.

The volatility has left business owners scrambling to adjust strategies. Some have cut staff hours, paused product launches, or reconsidered their supply chains. Julie Robbins, CEO of Ohio-based EarthQuaker Devices, warned of a potential “mass extinction” of small firms if the instability continues.

Since April, Trump has announced and revised blanket tariffs several times, including exemptions for some electronics, delayed EU tariffs, and new threats targeting manufacturers like Apple. The rapid shifts — often delivered via social media — have complicated planning for businesses with limited resources.

The uncertainty is taking a toll. The National Federation of Independent Business reported a decline in its optimism index for a second consecutive month, citing policy unpredictability as a key concern.

Companies like Manley Labs and Willow, which rely on Chinese manufacturing, have seen sales drop and product development stall due to rising costs. Others, like Intuition Robotics, are exploring new markets and diversifying supply chains to reduce exposure.

Still, options remain limited for highly regulated firms or those without the flexibility to relocate manufacturing. For many, the future remains clouded by uncertainty as policy direction continues to shift.