{"id":19715,"date":"2025-04-17T19:42:08","date_gmt":"2025-04-17T19:42:08","guid":{"rendered":"https:\/\/site.itshrt.com\/worldnews\/small-business-owners-say-economic-uncertainty-is-worse-than-tariffs-heres-why\/"},"modified":"2025-04-17T19:42:08","modified_gmt":"2025-04-17T19:42:08","slug":"small-business-owners-say-economic-uncertainty-is-worse-than-tariffs-heres-why","status":"publish","type":"post","link":"https:\/\/site.itshrt.com\/worldnews\/small-business-owners-say-economic-uncertainty-is-worse-than-tariffs-heres-why\/","title":{"rendered":"Small business owners say economic uncertainty is worse than tariffs. Here&#8217;s why."},"content":{"rendered":"<p> <script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-6606220950177433\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<!-- ItShrt World News -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-client=\"ca-pub-6606220950177433\"\r\n     data-ad-slot=\"1882483372\"\r\n     data-ad-format=\"auto\"\r\n     data-full-width-responsive=\"true\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script>\r\n<br \/>\n<\/p>\n<div id=\"\">\n<p>Small business owners worry that mounting economic uncertainty, driven largely by President Trump&#8217;s\u00a0<span class=\"link\"><a href=\"https:\/\/www.cbsnews.com\/news\/trump-tariffs-what-to-know-cbs-news-explains\/\" target=\"_blank\" data-invalid-url-rewritten-http=\"\">shifting tariff policies<\/a><\/span>, could shut their doors for good.<\/p>\n<p>Beth Benike, cofounder of Busy Baby, told CBS MoneyWatch that a lack of clarity on the direction of U.S. tariffs poses serious problems for the Oronoco, Minnesota-based retailer.<\/p>\n<p>&#8220;I am a problem solver. When a decision or policy comes out, I&#8217;ll find a solution. I will work with it or around it,&#8221; said Benike, whose company makes nonslip placemats and other products for babies. &#8220;The next day, the policy changes and that plan doesn&#8217;t make sense anymore, so I come up with something else.&#8221;<\/p>\n<figure class=\"embed embed--type-image is-image embed--float-none embed--size-medium\">\n<p>      <span class=\"img embed__content\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/assets1.cbsnewsstatic.com\/hub\/i\/r\/2025\/04\/16\/38f9febe-a939-4f83-bf86-fd01440dfcca\/thumbnail\/1240x827\/80e8adc286ca8ae91db58d39ca2a55f2\/ackerman-daily-baby-mat-tariffs-19.jpg?v=04a4ba26f526ed8207f014fe1018c4aa#\" alt=\"DAILY-Baby Mat Tariffs \" height=\"827\" width=\"1240\" loading=\"lazy\"\/><\/span><figcaption class=\"embed__caption-container\">\n<p>                  <span class=\"embed__caption\">Beth Benike, founder of Busy Baby, in the warehouse that stores her company&#8217;s products in Minnesota.<\/span><\/p>\n<p>                  <span class=\"embed__credit\"><\/p>\n<p>                Jenn Ackerman \/ The New York Times<\/p>\n<p>                          <\/span><br \/>\n              <\/figcaption><\/figure>\n<p>Smaller enterprises that rely on imported goods and packaging from China, which now faces U.S. tariffs of as high as 145%, are among the most concerned about Mr. Trump&#8217;s trade policies. But a prolonged period of economic uncertainty alone can prove fatal, obscuring future borrowing costs, dampening consumer spending, and otherwise hindering the strategic planning and managerial decision-making involved in running a small business.<\/p>\n<p>Trump administration officials have staunchly defended their economic policies.<\/p>\n<p>&#8220;Just as it did during President Trump&#8217;s first term, the administration&#8217;s America First economic agenda of tariffs, deregulation, tax cuts and the unleashing of American energy will restore American Greatness from Main Street to Wall Street,&#8221; White House spokesman Kush Desai told CBS MoneyWatch in a statement.\u00a0<\/p>\n<p>Recently, however, tremors in the economy intensified by Mr. Trump&#8217;s tariffs have eroded the optimism of small businesses, according to a closely watched confidence\u00a0<a href=\"https:\/\/www.nfib.com\/news\/monthly_report\/sbet\/\" target=\"_blank\" rel=\"nofollow noopener\">gauge<\/a>.<\/p>\n<p>&#8220;The implementation of new policy priorities has heightened the level of uncertainty among small business owners over the past few months,&#8221; William Dunkelberg, chief economist of the National Federation of Independent Businesses, said in a statement.\u00a0<\/p>\n<p>The decline in optimism comes as Mr. Trump&#8217;s economic agenda roils financial markets and raises concerns about slowing U.S. <span class=\"link\"><a href=\"https:\/\/www.cbsnews.com\/news\/recession-risk-2025-goldman-sachs-jp-morgan-trump-tariffs\/\" target=\"_blank\" data-invalid-url-rewritten-http=\"\">economic growth<\/a><\/span>.\u00a0<\/p>\n<p>&#8220;Consumers are concerned about the inflationary effects of the tariffs hikes. They understand if\u00a0<span class=\"link\"><a href=\"https:\/\/www.cbsnews.com\/news\/trump-tariff-surcharge-prices\/\" target=\"_blank\" data-invalid-url-rewritten-http=\"\">prices rise<\/a><\/span>, their real spending power will go down,&#8221; Steven J. Davis, a Stanford University economist who co-developed an economic policy uncertainty\u00a0<a href=\"https:\/\/www.policyuncertainty.com\/index.html\" target=\"_blank\" rel=\"nofollow noopener\">index<\/a>, told CBS MoneyWatch. &#8220;Also, some of them also feel that maybe their jobs are at risk, so for both reasons many consumers will cut back on discretionary spending.&#8221;<\/p>\n<h2>The cost of unpredictability<\/h2>\n<p>To be sure, even in the best of times business owners can be caught flat-footed by abrupt changes in the competitive landscape. But risks surge when the economic climate become unpredictable.<\/p>\n<p>&#8220;Uncertainty is the enemy of entrepreneurship,&#8221; Neri Karra Sillaman, an entrepreneurship expert at Oxford University, told CBS MoneyWatch. &#8220;When the rules of the game are constantly shifting \u2014 one day you have a pause on tariffs, another day you don&#8217;t have tariffs, if there are interest rate changes or political and economic instability \u2014 businesses cannot then confidently invest in growth.&#8221;<\/p>\n<p>Smaller businesses, which typically have less of a financial cushion than larger enterprises, tend to struggle more in such an environment, she added.<\/p>\n<p>Davis, whose own\u00a0<a href=\"https:\/\/www.policyuncertainty.com\/index.html\" target=\"_blank\" rel=\"nofollow noopener\">index<\/a>\u00a0shows a spike in uncertainty in recent months, said trade policy unknowns are &#8220;the big source of uncertainty right now inhibiting business investment and hiring.&#8221;<\/p>\n<p>&#8220;When you have tariffs, they tend to introduce cost unpredictability, which makes it very hard to predict and forecast margins accurately, especially in a product-based business,&#8221; Karra added.<\/p>\n<figure class=\"embed embed--type-video embed--type-content_video is-video embed--float-none embed--size-medium \"><figcaption class=\"embed__caption-container\">\n                              <a href=\"https:\/\/www.cbsnews.com\/video\/small-businesses-face-uncertainty-challenges-over-tariffs-china\/\" class=\"embed__headline-link\" data-invalid-url-rewritten-http=\"\"><\/p>\n<p>          <span class=\"embed__icon\"><br \/>\n            <svg viewbox=\"0 0 32 32\" aria-hidden=\"true\">\n              <use xlink:href=\"#icon-video\"\/>\n            <\/svg><br \/>\n          <\/span><\/p>\n<p>          <span class=\"embed__headline\">Small businesses face uncertainty, challenges over tariffs on China<\/span><\/p>\n<p>          <span class=\"embed__video-duration\">04:01<\/span><\/p>\n<p>                      <\/a><\/p>\n<\/figcaption><\/figure>\n<p>Busy Baby&#8217;s Benike said the sudden swerves in U.S. trade policy have made planning all but impossible. \u00a0<\/p>\n<p>&#8220;If I invest time, energy and money and the policy changes again in a way that makes the decision a poor one, I am already invested, the wheels are in motion and I&#8217;d be screwed,&#8221; she said.\u00a0<\/p>\n<p>&#8220;I can&#8217;t make a decision, so the best thing I can do is get the inventory I&#8217;ve paid for here and ready to sell,&#8221; she added, referring to her latest factory order, now sitting in a Chinese warehouse.\u00a0<\/p>\n<p>Meanwhile, the new 125% U.S. baseline tariff on Chinese imports means that Benike would owe $229,000 in duties on products worth roughly $158,000. She has launched a fundraising campaign to help cover the tariff costs.\u00a0<\/p>\n<p>Her plan B, should the steep levies remain in place, is to continue manufacturing her products in China and to sell them to markets outside the U.S.<\/p>\n<p>&#8220;There are babies everywhere. If I can&#8217;t sell in America, there are other countries that are interested,&#8221; she said.\u00a0<\/p>\n<h2>Business on the brink<\/h2>\n<p>Kristin Bear, founder of Kilo Brava, an online lingerie and sleepwear company that sells both directly to consumers as well as to major retailers including Macy&#8217;s, Nordstrom and Anthropologie, said the sky-high U.S. tariffs on Chinese imports &#8220;wipe out our business completely&#8221; if they stay in place.<\/p>\n<figure class=\"embed embed--type-image is-image embed--float-none embed--size-medium\">\n<p>      <span class=\"img embed__content\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/assets2.cbsnewsstatic.com\/hub\/i\/r\/2025\/04\/16\/5f1e6517-df19-4605-9a3c-e47f8d7e7231\/thumbnail\/1240x1045\/58fb901bb57f65f6ad91298fb59495b5\/screenshot-2025-04-16-at-9-43-43-am.png?v=04a4ba26f526ed8207f014fe1018c4aa#\" alt=\"screenshot-2025-04-16-at-9-43-43-am.png \" height=\"1045\" width=\"1240\" loading=\"lazy\"\/><\/span><figcaption class=\"embed__caption-container\">\n<p>                  <span class=\"embed__caption\">Kristin Bear, owner of lingerie and sleepwear store Kilo Brava, said soaring U.S. tariffs on China &#8220;really puts our business in complete jeopardy.&#8221;<\/span><\/p>\n<p>                  <span class=\"embed__credit\"><\/p>\n<p>                Courtesy of Kristin Bear<\/p>\n<p>                          <\/span><br \/>\n              <\/figcaption><\/figure>\n<p>&#8220;We have not imported anything yet with the 145% tariffs in place, but it really puts our business in complete jeopardy,&#8221; she said.\u00a0<\/p>\n<p>Another challenge is that U.S. factories aren&#8217;t equipped to manufacture the types of garments she designs, Bear said. And because orders for garments intended for sale this fall must be placed with factories by May, it&#8217;s too late to explore manufacturing options in other countries.<\/p>\n<p>Said Bear, noting that she can&#8217;t afford to lose a whole season&#8217;s worth of orders, equivalent to roughly $500,000 in sales: &#8220;If tariffs are still in place when it&#8217;s time to import them, we&#8217;ll just have to abandon the goods and close the company.&#8221;<\/p>\n<p>    <!-- data-recirc-source=\"queryly\" --><\/p>\n<aside class=\"component list recirculation component--type-recirculation \">\n<p><h3 class=\"component__title\">More from CBS News<\/h3>\n<\/p>\n<\/aside>\n<p>    <!-- tags --><\/p>\n<div class=\"content-author\">\n      <a href=\"https:\/\/www.cbsnews.com\/team\/megan-cerullo\/\" class=\"content-author__name\" data-invalid-url-rewritten-http=\"\">Megan  Cerullo<\/a><\/p>\n<div class=\"content-author__bio\">\n<div class=\"content-author__full-information\">\n<p class=\"content-author__text\">Megan Cerullo is a New York-based reporter for CBS MoneyWatch covering small business, workplace, health care, consumer spending and personal finance topics. She regularly appears on CBS News 24\/7 to discuss her reporting.<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p><script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-6606220950177433\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<!-- ItShrt World News -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-client=\"ca-pub-6606220950177433\"\r\n     data-ad-slot=\"1882483372\"\r\n     data-ad-format=\"auto\"\r\n     data-full-width-responsive=\"true\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script>\r\n<br \/>\n<br \/><a href=\"https:\/\/www.cbsnews.com\/news\/economic-uncertainty-bad-for-business-trump-tariffs\/\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Small business owners worry that mounting economic uncertainty, driven largely by President Trump&#8217;s\u00a0shifting tariff policies, could shut their doors for<\/p>\n","protected":false},"author":1,"featured_media":19716,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[37],"tags":[730,1613],"class_list":["post-19715","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-money-watch","tag-economy","tag-small-business"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Small business owners say economic uncertainty is worse than tariffs. 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