Industry leaders have indicated that tariffs implemented during Donald Trump’s administration have contributed to increased prices on various holiday goods and have led to the closure of many small businesses. On Small Business Saturday, many retailers hoped that robust holiday sales would mitigate the effects of a challenging year; however, skepticism remains widespread among them.
Joann Cartiglia, the owner of Queen’s Treasures, a toy company in New York, expressed concerns regarding the impact of these tariffs on her business, stating that the financial investment made by her family feels jeopardized. This sentiment is echoed by others in the retail space, as tariffs have forced many to navigate significant challenges, including rising costs and uncertainty.
Despite ongoing lawsuits and opposition from larger companies, the Trump administration has maintained its tariff strategy, insisting that it will generate substantial revenue for the federal government. The President has remarked that critics of the tariffs are acting in the interests of foreign entities.
Small businesses are particularly affected by these tariffs due to their typically narrower profit margins. Jared Hendricks, owner of Village Lighting Co in Utah, reported that the tariff-related expenses for his business are nearing $1 million this year. He believes that without relief, cost increases in holiday items could worsen in upcoming seasons. The complexity of the supply chain for holiday goods further complicates matters, as relocating production would require considerable investment and time.
A survey conducted by Small Business for America’s Future revealed that 71% of small business owners expect tariffs will negatively affect consumer spending during the holiday season. Additionally, approximately 44% have raised their prices because of tariffs, and many express concerns about their business viability over the next year. However, the White House continues to assert that tariffs will ultimately benefit the U.S. economy through new trade deals and investments.
Source: https://www.theguardian.com/business/2025/nov/29/small-businesses-trump-tariffs-holiday-season