Rising tariffs are creating a sense of dj vu for many small business owners, reminding them of the difficult times they faced during the initial stages of the COVID-19 pandemic. The increase in import costs is squeezing their profit margins, forcing them to make tough choices about pricing and inventory management.
"It feels like we're back in 2020," said one small business owner interviewed by CBS News. "We're constantly worried about costs going up and how we're going to stay afloat." Many businesses are hesitant to pass the increased costs onto consumers, fearing they will lose customers in an already competitive market. This puts them in a precarious position, as they struggle to maintain profitability while absorbing the higher expenses.
The impact of the tariffs is being felt across various sectors, from retail to manufacturing. Businesses that rely on imported materials or goods are particularly vulnerable. Experts warn that if the tariffs continue to rise, it could lead to further economic hardship for small businesses and potentially slow down overall economic growth. The situation is being closely monitored by economists and policymakers as they consider potential solutions to mitigate the negative effects.
Tariffs Revive Pandemic-Era Fears for Small Businesses
Small businesses are facing new challenges as rising import costs put a strain on their operations. Many owners say the current economic climate feels similar to the uncertainty and hardship experienced during the early days of the COVID-19 pandemic. Increased tariffs are forcing businesses to make difficult decisions about pricing and inventory, impacting their bottom line and future prospects. CBS News reports on the growing concerns within the small business community.
Source: Read the original article at CBS